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Updated by fin.tips on Dec 02, 2016
Headline for Investing in Real Estate? Avoid These 4 Mistakes
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Investing in Real Estate? Avoid These 4 Mistakes

If you want to produce long-term returns for your money, real estate can be a great way to do that, but if you are looking to “get rich quick,” it’s best to be avoided. For first-time investors in property, the trick to success is in establishing a set of rules for yourself and then sticking to them. Here are a few tricks that will assist you in avoiding a real estate investment downfall.

Source: http://fin.tips/real-estate-investment-mistakes/

1

Thinking you’ll get rich quick

Thinking you’ll get rich quick

With the exception of a couple of internet sensations, seldom does a person find themselves “getting rich quick.” Wealth is something that is acquired with long hours of hard work, combined with good financial choices.

With so many people falling victim to self-help books that offer wealth and power, there are tons of others who enter the real estate investment sphere with no actual knowledge.

2

Failing to plan

Failing to plan

Establish a financial investment plan and then find the home that meets your needs. If you fall in love with a house because it appeals to you cosmetically or flashes a cheap price, this could be a good way to destroy yourself financially.

If you set a number for investment properties, you won’t risk spreading yourself too thin. These need to be looked at without emotion and based solely on the numbers.

3

Doing it alone

Doing it alone

One of the most dangerous decisions you can make when you are attempting to make a real estate investment is believing that you alone have the skills or knowledge to be dealing with homes.

While we are not judging your intelligence or your talent, because you probably have both, it is not very likely you can be an expert on everything, from legal negotiations to floor laying and plumbing.

4

Mismanaging money

Mismanaging money

The quickest way to sink yourself is through poor management of your funds. If you have inaccurate estimates or are overpaying for the sale, it can end up costing you exponentially, with all of your profits disappearing upon selling.

You will also need to budget for the possibility your house may be on the market longer than you anticipated, or may need more work than you thought.

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