There is money to be
made in real estate, but you need to think about real estate investing as the
business it is. Here are some common mistakes that beginning investors should
1. Getting emotionally involved.
This is the biggest and most common mistake beginning investors make. Emotions
and business do not mix well. In this case, falling in love with a property
will almost always ensure that you pay too much to make it profitable. 2. Paying too much.
To make money investing, you have to find a good deal. Look for properties that
need a little fixing up. Your goal is to find a distressed property that you
can purchase for around 70 percent of comparable listings. 3. Ignoring schools.
Good schools attract good renters. Conversely, only the most desperate renters
are willing to subject their children to failing schools. And renters in
desperate financial situations are not renters you want occupying your
property. 4. Buying a low-priced home in a bad neighborhood.
Property that is situated among vacant or foreclosed homes will not be enticing
to future renters. Property in neighborhoods that experience vandalism and
other crime is not worth the investment. Before you buy, make sure that this is
a neighborhood that renters will want to live in. 5. Putting too much of your own money down.
This is not your home; it is your investment. As such, you should choose a
property that will bring enough rent to cover the mortgage even if you put
little money down. When you keep your funds liquid, they are available for
emergency repairs and upgrades. 6. Forgetting to calculate taxes.
Sometimes high property taxes mean that your rental property is in an area with
great schools and other quality infrastructure. However, sometimes it simply
means the area is overtaxed or has poorly managed local government. If your
proposed rental property includes high property taxes, make sure that the
area’s desirability compensates for the extra cost. 7. Disregarding local trends.
Check out the area’s employment opportunities. Are they growing or shrinking?
Find out about any scheduled future development. Is the area adding parks,
shopping, or even a public transportation hub? Proposed new condominiums and
apartment complexes could indicate a growing community, which is good news.
However, new condos and apartments also mean competition for the best renters.
Weigh the pros and cons of local trends before you invest.
We understand that for many people, buying or selling a home is probably the largest investment decision that they will make in their lifetime. Halo Group Realty LLC thus became active in selling Real Estate in 2008 and was setup to make this process a simple and painless transaction. Your dedicated agent will guide you every step of the way to make purchasing or selling your home enjoyable and exciting… as it should be!
Today, Halo Group Realty LLC is at the cutting edge of technology in offering assistance to those in need of real estate services, and we have revolutionized the method of delivering education to consumers. Halo is established as the place for consumers to get the knowledge and assistance they deserve in the process of facilitating the Real Estate transaction, positioning you in the best possible situation to get the best price when you either to buy or sell. With leadership, innovation and forward thinking, Halo Group Realty, LLC is poised to make a huge impression in the real estate market while providing clients the keys to home ownership.
Our goal is to help make your dream a reality and take away all of the stress that goes along with purchasing or selling your home. Whether you are purchasing new construction, an existing home, or just an open space for future enjoyment, representation by a Halo agent is a valuable tool in making your dream become a reality.