All Topics > Real Estate Resources > Buying > Investment Properties > Top 8 Mistakes Real Estate Investors Make >

Top 8 Mistakes Real Estate Investors Make Michigan

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

Local Companies

www.crowleyrealestatesolutions.com
734-444-8990
9911 shadyside
Livonia, MI

Century 21 McCoy Real Estate
231-218-7817
PO Box 456
Suttons Bay, MI

Safer Homes LLC
517-639-3935
919 Ely Rd
Quincy, MI

Coldwell Banker
616-355-6305
466 E. 16th st
Holland, MI

Tom Frame - Kalvan Realty
(269) 580-2259
226 Monroe Street
Bangor, MI

Coldwell Banker Woodland Schmidt
616-355-6305
466 E. 16th st.
Holland, MI

Tomie Raines Inc
517-242-1897
1400 Abbott Rd
East Lansing, MI

Turning Point Buyers Realty
616-990-0004
Please call for a personal appointment
Grand Rapids, MI

Re/Max New trend
248-988-8888 X 223
122 Concord Road
Bloomfield Hills, MI

Kathy Toth & Team Keller Williams Realty
734-669-0337
2144 S. State St.
Ann Arbor, MI

provided by:

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

www.crowleyrealestatesolutions.com

734-444-8990
9911 shadyside
Livonia, MI

Read more about Top 8 Mistakes Real Estate Investors Make

- 1031 Exchange Michigan

A 1031 exchange allows people to exchange one property for another of like kind so they can avoid paying capital gains taxes. Find out how this property exchange works and if you qualify or it is something you want to consider.

- 5 tips to get your home ready for sale Michigan
- 21 Ways to Enjoy Your New Home Michigan
- 5 Ways to Help Your REALTOR® Michigan
- 10 Easy Ways to Update Your Home Michigan
- 5 Tips for an Easy Local Move Michigan
- 5 Useful Tips In Selling House Michigan
- 5 Home Buying Mistakes Michigan
- 7 tips to sell your home Michigan
- 8 Reasons to Get Pre-Approved for a Home Loan Michigan

Regional Articles

- 7 tips to sell your home Michigan

Price, condition, competition, access -- these and other factors can mean the difference between a speedy sale and no sale.

- 5 Ways to Help Your REALTOR® Michigan
- 5 Tips for an Easy Local Move Michigan
- 21 Ways to Enjoy Your New Home Michigan
- 5 tips to get your home ready for sale Michigan
- 1031 Exchange Michigan
- 5 Useful Tips In Selling House Michigan
- 10 Easy Ways to Update Your Home Michigan
- 5 Home Buying Mistakes Michigan
- 8 Reasons to Get Pre-Approved for a Home Loan Michigan

Advertising	Food & Beverage	Nightlife
Business Services	Franchise	Online Database
Career	Health	Pets
Cars	Holidays	Real Estate Resources
Computer Hardware	Home Appliances	Retail & Consumer Services
Construction	Home Electronics	Software
Education	Home Services	Technology
Entertainment	Industrial Goods & Services	Telecommunications
Environmental	Insurance	Trade Shows
Family	Internet	Travel
Fashion	Legal	Weddings
Financial Services	Miscellaneous	World History

Advertising	Family	Home Services	Real Estate Resources
Business Services	Fashion	Industrial Goods & Services	Retail & Consumer Services
Career	Financial Services	Insurance	Software
Cars	Food & Beverage	Internet	Technology
Computer Hardware	Franchise	Legal	Telecommunications
Construction	Health	Miscellaneous	Trade Shows
Education	Holidays	Nightlife	Travel
Entertainment	Home Appliances	Online Database	Weddings
Environmental	Home Electronics	Pets	World History