5 Common Real Estate Investing Mistakes You Must Avoid — Destiny Davis
Real estate is one of the best assets you can own. I get a lot of people asking me questions about asking the best way to invest.
Now, I’m not here to give you financial or investment advice. It’s all going to depend on your situation, goals, and finances.
What I do want to do is walk you through 5 common mistakes people are making, and how you can avoid them.
#1. Not doing enough research.
This is a big one. Ok, so I admit, I’m a total nerd and I put together spreadsheets for my clients from potential pricing to cash on cash returns. It’s important to know your numbers. At the same time I see people who spend more time planning their vacation than their real estate investments or even looking into the home they are wanting to purchase.
That seems a little crazy to me. You need to dig into the details of what you want, know everything about the property and make sure it’s inline with your goals and expectations.
#2. Failure to get proper financing.
Lots of real estate investors like to make deals on the fly. While sometimes this can work — it’s not the ideal scenario for most. Deals have a lot of parts.
What kind of financing options are you using?
- Balloon payments
- Interest-only payments
- Owner financing
- The list goes on..
These are all tools in our tool belt. You need to make sure you are using the right tool for the right project. You don’t want to try to hammer a square peg into a round hole.
Too many times I see people get caught up in ‘..but Destiny it’s a great price’. That’s a fair point. However, the price isn’t the only thing to consider in a deal.
You have to look at the bigger picture. It’s important to have someone that can help you with that if it’s something you struggle with.
#3. Not staying in your lane, bro.
You can’t be successful by yourself. I have a beautiful Newf, Gracie. We hang out. I take her for walks. She’s the guardian of my fridge. Family. My homie. However, I know I’m not her vet.
Now, that might sound like a silly example. It’s not. I see real estate investors all the time try to be experts at everything, and they all end up in a jam.
So, how do you avoid this? Stay in your lane, bro.
Here’s what I mean — you need to focus on profits and ROI. Great real estate investors have: real estate agent, title company, attorney, handy man, and insurance agent on speed dial.
Now, I’m not saying you always need them. I’m saying you shouldn’t have to figure out who they are when you need them. Use the experts. They are definitely worth it.services. Use your experts to your full advantage.
This comes down to doing research. Are you in or out? That’s going to depend on price.
One of the mistakes that I see investors make is they fall in love with a property. They don’t realize what it can honestly sell for.
Do your research. Know the math.
#5. Not knowing your numbers.
Too many investors will tell themselves ‘Hey, they say it will cost $50,000 in repairs. I can do it myself for $27,000.’
Are you kidding me? Let’s be real, bro.
3 things come to mind here:
- You aren’t a pro. If you don’t know how to lay floor tile you aren’t going to get it right.
- You don’t know how to estimate the cost. There’s a reason a pro tells you it costs that much.
- Your time is worth more than money. Pros take care of it and at a different speed.
Also you have to calculate for all expenses. For example, utilities, insurance, property taxes, landscaping, etc can add up. You have to know your numbers.
Real estate investing can be simple. It’s not easy. It can be simple.
It starts with learning to build a proper foundation, so you can avoid mistakes. Simplify your process. Keep moving forward.
If you have any questions click here and let me know and I’ll be happy to answer you.