There’s nothing wrong with picking up a real estate investing advice. But be careful! Some pieces of advice are simply not worth abiding by. They could ruin your deal, or worse your career as a real estate investor. So before you even start following a tip from someone you look up to, think. Think well if that suggestion will indeed help you. For those who have just started investing in real estate, here are some deadly pieces of advice you should not follow.
Do the inspection on your own. Some investors are so good with inspecting property they no longer hire a professional to do it for them. Neophyte investors, upon learning of this, will imitate it. They buy the house that looks perfectly alright only find out later that it requires structural repairs. And what are structural repairs? They don’t even know. If someone tells you that you can save money by doing the inspection on your own, don’t believe them. A professional home inspector’s services can cost a lot in some areas but his expertise will save you from purchasing the wrong house. Buying the right house when investing in real estate will save you from early career destruction.
Do the appraisal on your own. Follow this real estate investing advice and you’re doomed. Unless you have an experience in valuing homes, leave it to professionals. Professional appraisers know why this house is valued this much. And in this business, proper estimates are crucial. They will help you determine how much you’ll offer to the seller and how much to ask from the buyer. Accurate estimates will also help when you apply for financing.
Spend as little as possible for repairs. This real estate investing advice is a general rule. Therefore, there are exceptions. When doing a rehab project, it is true that you need to spend as little as possible. However, there are areas of the house that you should not skimp on. What are these parts? First and foremost is the kitchen. This portion of the property is perhaps the most scrutinized. It is also the most “emotional.” If you are able to evoke the emotions of your buyer through the kitchen – making them feel at home and imagine living in that house – the sale is likely to happen. To rehab the kitchen, you have to make sure countertops are clean and new, or at least refinished. New appliances and water fixtures will also help.
Want more advice when investing in real estate? Go to Rehab-Real-Estate.com now.
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