7 Inconvenient Truths of Real Estate Investing

OK, today we're going to talk about how NOT to be profitable as a real estate investor.

Real estate investing can be a great way to your build assets and achieve financial security. However, in order to be profitable, you need to the many landmines that kill your profits.

Here are 7 costly real estate investing mistakes:

  1. Not having a plan

    • Some people shop for a "deal", then decide what to do with it. That's backward. First, decide what kind of revenue properties you want, how big, how many, etc. Have a plan before you buy.
  2. Not being educated

    • Before you buy, read as much as you can, study the market, get sound advice.
  3. Looking to get rich quick

    • Make sure you understand how much work is involved and how long it will take to realize the significant returns you expect.
  4. Doing it yourself

    • You're not an expert. So make sure you have expert support, including a real estate agent, appraiser, home inspector, lawyer, mortgage broker, tradespeople, etc.
  5. Overestimating cash flow

    • Budget for vacancies and expenses (like property management) that can dramatically reduce returns.
  6. Not doing due diligence

    • Make sure you use an inspector, title insurance, accountant. Do everything you can to avoid costly mistakes.
  7. Not having a Plan B

    • Sure, you want to earn rental income. But what if the rental market collapses? Make sure you're prepared with strategies for selling, rent-to-own, etc.

So there you have it. I've just given you 7 inconvenient truths of real estate Investing.

For more information on how to build your wealth with Real Estate, please call us today!

For Vancouver Mortgage Broker related inquiries ~ 604 628 5040.

For Vancouver Luxury Realtor related inquiries ~ 604 566 8968.

Cheers,

Jessi Johnson Vancouver Mortgage Broker Vancouver Luxury Realtor

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