7 Mistakes To Avoid on Property Investment For Beginners
Posted by Techyscouts | Posted on 05/06/2022
Being a dedicated realtor in the Los Angeles area for over 20 years, Mike Millea has the experience and knowledge you need to help you understand what you’re getting into. If you are considering diving into the world of property investment, here are 7 mistakes to avoid:
Paying Too Much
Imagine you’ve found what, to you, is the perfect property. However, it’s priced a little high or has multiple parties interested in it. Falling in love with a property is a good way to end up spending more than you should. The purpose of an investment property is to eventually profit from it, so paying too much upfront is going to derail that goal before you even get started.
Skipping The Research
Be sure to know what you’re getting into. It would be nice to see a property you like, buy it and have it all work out, but unfortunately, that’s often not the reality. Learn everything you can about the property you’re trying to invest in, the area it’s located in, and the potential return on investments.
Not Having A Plan
Make sure you take the time to create a plan and goals for your investment strategies. Once you dip your toe into the investment world, things can get exciting. It’s important to think clearly, formulate a realistic long-term goal and take things slow.
Applying For The Wrong Kind of Loan
Before you start to finance your investment property, research what type of loan you need and the requirements. Once you start the process, you will be incredibly disappointed to discover your loan gets denied or there was a better financing option. Discuss your needs with your banker before applying for any loan.
Ignoring The Market
Knowing and understanding current market conditions is of the utmost importance when it comes to purchasing an investment property. Discussing the property with a trusted realtor like Mike Millea will make you better educated about the property, and the local trends and help you feel more confident about putting your money behind the sale.
Leaving Your Local Market
Especially when you first start in the investment property world, it’s ideal to stay local. Purchasing a property that you can’t easily keep an eye on can be a recipe for disaster. Not only will you be able to easily check on your property, but you will also have access to professionals you know and trust if trouble comes up. Along with that, you will be more aware of local laws and ordinances that might impact your property.
Putting All Your Eggs In One Basket
A good solid property to invest in is great, but it’s important to not sink all of your assets into one single property without considering future ramifications. Owning multiple properties with a return on your investment is always better than just owning one, so avoid overextending yourself on just one property.
Don’t Go Into Real Estate Investments Without An Expert On Your Side
The largest piece of advice we can give is – don’t go into a new investment without an expert on your side. Hiring a realtor and real estate attorney with investment property experience in your area will provide you with the clarity and information needed to make sure you’re taking the right steps toward a profitable future via investment properties. If you are ready to discuss your goals, find a viable investment property in the greater Los Angeles area, or just have questions regarding real estate, investment properties, trusts, or more, contact Mike Millea and his team today.