Top 8 Mistakes Real Estate Investors Make Kansas

Avoid these common mistakes to improve your prospects as a real estate investor.

Local Companies

The Capstone Team of Keller William Realty Partners Inc.
913-266-5861
8005 W 110th Street
Overland Park, KS
JBPRG - Keller Williams Realty
913-906-5417
11005 Metcalf Avenue
Overland Park, KS
Kansas City Real Estate 411
913-908-2215
11005 Metcalf Ave
Overland Park, KS
Jason Brown - Keller Williams Realty Partners, Inc.
913-906-5417
11005 Metcalf Ave.
Overland Park, KS
Michelle Cox
785-267-8317
2222 SW 29th St
Topeka, KS
Plum Creek Properties
(913) 755-3111
432 Main St
Osawatomie, KS
Crown Realty
(913) 557-4333
102 S Silver St
Paola, KS
Family Realty Group
(913) 849-3225
16705 W 327th St
Paola, KS
Pro Home Inspectors
(913) 294-2738
808 E Osage St
Paola, KS
Sundance Paola Apartments
(913) 294-9824
1010 Industrial Park Dr
Paola, KS

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Investing in real estate isn’t a guarantee to riches. Too many real estate investors make mistakes that end up costing money. Avoid these common pitfalls in order to improve your chances for success.

Mistake # 1 – Not having a plan. A successful real estate investor needs a plan. It’s not enough to just buy a house and expect to sell it at a profit. Instead, before purchasing any house, a real estate investor should have a well-thought out plan of how the investment will work. That means working out your plan of attack before you buy any properties.

Mistake #2 – “Get rich quick” approach. Real estate investing is not for those hoping to make money overnight. On the contrary, successful real estate investing takes a lot of hard work. It also requires much time. Approaching real estate investing as a way to get rich quick is a sure way to not make money. Instead, know that it generally requires you to invest substantial time and money before you start seeing a profit.

Mistake #3 – Quitting your day job. Being a real estate investor requires a lot of hours, but it does not guarantee a steady income. And, it takes money to make money in this game. Investors just starting out often need regular income, especially since there are no guarantees you’ll turn a profit.

Mistake #4 – Lack of cash. Real estate investors often underestimate the monthly expenses that come along with investing. You’ll need to pay for home buying costs like inspections, appraisals, attorney fees, loan closing costs as well as mortgage payments, repairs, maintenance, and more. All told, you need to have plenty of cash on hand.

Mistake #5 – Foregoing a home inspection. Just because you don’t plan to live in the homes or properties you buy does not mean you should skip an inspection. An inspector can tip you off if the property is a money pit. You don’t want to pour so much money into it that you can’t make a profit.

Mistake #6 – Underestimating renovating costs. You’ve got to know how much you’ll have to put into an investment property. Have an idea of how much any improvements will cost – and then double that. Renovating projects are notorious for taking more money and time than originally planned. Also remember that if your renovations take longer than you anticipated, it means that you’ll have to pay mortgage payments and maintenance costs longer as well.

Mistake #7 – Holding on to the property for too long. The longer you keep the property, the more costs you incur. Usually, you’ll make the most when you buy and sell in a short time. Don’t lose your potential profits through the monthly mortgage payment.

Mistake #8 – Going it alone. Trying to go it all alone is another mistake common to real estate investors. You are not an island in this business. Instead, for the most opportunity for success, it’s a good idea to develop close relationships with professionals involved in the real estate process. For example, have a good working relationship with at least one real estate agent, appraiser, home inspector, closing attorney, contractor, etc. That way you have help on hand if you need it.

 

Published on August 03, 2007

Read full article at realestate.com

Featured Local Company

The Capstone Team of Keller William Realty Partners Inc.

913-266-5861
8005 W 110th Street
Overland Park, KS
http://KansasCityMetroHomes.com

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