Tips to Avoid Costly Real Estate Mistakes
(NUI) – Many people would like to be in real estate but let fear of making mistakes get in their way.
“Good deals can be found almost anywhere, but most people don’t know how to make it happen,” said Robert Shemin, an attorney and successful private real estate investor.
Shemin wants to help people make it happen with his new book, “Successful Real Estate Investing: How to Avoid the 75 Most Costly Mistakes Every Investor Makes.”
The book points out the 75 biggest “don’ts” of real estate investing and offers a few big “dos” along the way. The advice applies to people buying to sell quickly and those buying to rent.
Here are some mistakes to avoid if you are buying to sell:
* Not getting into real estate investing early enough. Get involved as soon as possible because investing the right way is virtually guaranteed to be lucrative over time.
* Being frightened to do large deals. Large deals can be easier than small deals, as long as you follow the right principles. Plus, the payout is bigger.
* Not becoming active in your local Real Estate Investors Association. These groups offer investors invaluable resources.
* Not budgeting for your real estate education. Further education is crucial as long as it increases your profits.
Don’ts for people buying to rent include:
* Not having a systematic way to run your rental business. If you do not have a system, you are wasting your talent and your time.
* Not charging tenants for damages on your property. If they break it, they pay for it.
* Penalizing bad tenants but not rewarding good ones. Rewarding good tenants will keep them around and will save you money in the long run.
* Not inspecting properties regularly. If you notice a tenant’s damage early, you can keep them from doing more.
* Attempting to perform your own evictions and collections. Hire a professional and avoid costly mistakes and unpleasant legal problems.
“Look at history. Real power and wealth was achieved by land ownership,” Shemin said. “Most millionaires in America are millionaires because of real estate. Everyone knows someone who has made a lot of money in real estate. And you can, too.”