You know your next financial move is buying an investment property. Too many people make mistakes by jumping in too soon or make a purchase that just isn’t right for them. Besides buyer’s remorse, you may be stuck with a property that won’t bring the return on investment you are hoping for, which is why it’s important to use a local broker to buy an investment property and help you avoid mistakes.
Common Mistakes Real Estate Investors Make
Not Lining Up Financing Beforehand
It takes time to apply for a loan and secure financing. You want to be ready to make an offer in a competitive market. Know how much money you can invest, have funds ready from your investors, or be pre-approved for a loan. Too many people move ahead and find the “perfect” property to just realize it’s outside of their budget.
Being too Optimistic About Repair Timelines
Don’t assume you can make all the updates on your investment property yourself. There are many hats you must wear when trying to fix-up or flip a property and taking on all the updates can mean an extended selling timeline. Additionally, any construction project risks a setback, which extends the timeline as to when you are able to allow tenants into your property.
Choosing the Wrong Location
Don’t forget about how important location, location, location is. Did you want to purchase a former retail building? Know your plans for this investment property and how location might make or break your overall strategy. You should also check zoning ordinances to make sure you can use the investment property for your intended business ventures.
Making an Emotional Decision
When you are eager to move forward with an investment, it’s not always easy to pause and consider all the aspects of the property you are viewing. We are all at risk of being wooed by beautiful features, an ocean view, or an excellent sales pitch. This is another reason why it’s helpful to have a local broker work with you to find the best property. A great real estate agent will remind you of your goals for the property purchase and help you weigh the pros and cons of each investment opportunity.
When it’s time to buy your next investment property contact Ullian Realty in Brevard, FL. Our brokers have over 50 years of combined experience helping clients avoid mistakes. We’ve developed a strategic process which leaves no stone unturned as you evaluate each investment property opportunity. Give us a call today to learn more.