Avoid 12 Common Mistakes


Real estate investing has provided many people with positive cash flow, tax benefits and satisfaction of making an impact in others lives. However like any investment, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache. The right professional can help you avoid these:

FAILURE TO DETERMINE YOUR TIME NEED. Cash flow, capital appreciation, tax benefits, management, equity reduction, and ownership options are just some things that need to be addressed carefully before making an investment. NOT CHECKING OUT THE SELLER AND SELLER'S DATA. Claims of extremely high rates of return run rampant in real estate investments. Check everything, rents, payment history,taxes, expenses, deposits, title are just some of the basics. FORGETTING YOU ARE BUYING A BUSINESS. Owning investment property has some potentially difficult decisions. Evictions, re-investment into the property, time management all need careful consideration. AVOID NEGATIVE CASH FLOW. Some properties can eat cash every month and drain your working capital. This can create stress, frustration and become quite painful. FAILURE TO DO A THROUGH INSPECTION. Hire a professional inspector. Ask tenants about problems, pest, damage and reoccurring problems not addressed by present owner.GET A BILL OF SALE. Many times personal property (appliances,furniture,fixtures) are outside of the sale. GET ESTOPPEL LETTERS. Those leases don't always transfer with the property. Check status of tenancy.DON'T SPEND POSITIVE CASH FLOW. Most successful investors have free and clear properties. Chip and Kathy will take care of all the homework for you. We are real estate investors ourselves many times over. Trust us with your investment needs.