How Not to Lose Money in Real Estate (Part 2)
In the previous part of this 3-post series, we discussed how blindly relying on the internet can be a big problem for real estate investors. To grow yourself as an investor – and to grow your portfolio – you must go beyond Google to also do some groundwork. If you didn’t read that part, please give it a quick read here: How Not To Lose Money in Real Estate (Part 1)
2. Hire One of the Good Real Estate Investment Firms
Some of the highly successful investors, even they work with real estate investment firms.
They consult experts. They tap on the reach and resources of property investment companies to understand the market better; to get newer insights.
So, while real estate investment can sure be done solo, it’s recommended to have people who understand the game better by your side.
You need real estate experts. This is especially true if you’re a beginner and lack basic experience.
Take some time to find one of the good real estate investment firms. Make sure they are reputed and have the right team that offers fitting services per your individual needs and requirements.
The right experts will hold your hand and make all the difference in your portfolio, navigating you in the right direction and enabling you to make better decisions.
So, do give up on that DIY, lone-wolf mentality. Get help. This is a very basic and important part of the process of becoming a successful real estate investor.
3. Avoid Underestimating the Cost
Real estate is far from being ‘buy low, sell high’. There are too many dynamics to it that influence the profitability or loss of a deal.
A lot more factors need to be considered when buying or investing in any property.
A common factor that many people overlook is the expense.
When buying a property, there’s much to it than just its asking price. Mortgage, interest rate, repair costs, maintenance costs, insurance, more; it has many tax implications. You have to pay the property investment companies, broker, and other agents. You may have to hire a lawyer, which will come with its own bill.
So, there are a lot of costs. Many people underestimate this, which disarray their calculations and lead them to losses. Don’t be one of them!
Before going into any deal, be very, very certain of the total cost. This is something your real estate investment firm will help you with.
This is the second part of the 3-post series. In the next part, we discuss how investors must look beyond the residential segment and why they should never follow the crowd. Please read the next part here: How Not To Lose Money in Real Estate (Part 3)