Okay, you have read the books, listened to your agent, received expert legal advice, and benefited from sound financial recommendations. You are ready to invest.
Real estate transactions usually include a wrinkle of some sort. The investment process should be disciplined and business-like, but sometimes emotion gets in the way. After all, you are investing cash, making a loan commitment and have invested valuable time. These are the most common real estate investment mistakes.
· Exceeding the budget – Just because you set a budget, does not mean you have to spend the money. Once your price is set, sit back down and re-work all the numbers. Does your budget make the most sense?
· Making financial changes prior to closing – Avoid any event that could impact your budget.
· Buy with resale in mind – You have heard it. Location, location, location. When you choose your investment, buy a location that assures resale. When you arrange your financing, make sure you can prepay the balance.
· Not having a final walk-through – The walk-through is the investor’s chance to make sure that all contingencies have been met and that the property is being delivered in the condition that was expected. Avoid any last minute surprises and make it a point to perform that final walk-through inspection.
· Overlooking the details – The investment process can appear repetitious. After all, it is based on a contract and a series of events that lead to the closing. That includes an inspection, arranging the financing, the final walk-through, further negotiations, pest inspections and planning for the closing. Along the way the “to do” list will grow and the details will mount. Every detail is a step toward the closing. Don’t sweep any details under the carpet and soon you will have accomplished your goal.