Real Estate Do and Do Nots

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) January 4, 2012 -- I have learned quite a few very valuable lessons while investing in Real Estate over the years. Most of them came at a financial cost at some point, others were learned from bad experience. I am writing this article for the investors out there that are just getting started and can learn from my mistakes and avoid them so that they can save themselves potentially thousands of dollars and a lot of stress. I’m going to give you a few of the big ones because they will help you achieve a higher level of success as you start out.

1. You DO NOT have to have money to buy properties.

2. You DO need to have money to maintain properties (unless you have a property fairy that will maintain it for free).

3. You DO NOT want to manage the properties yourself, use a property management company or an onsite manager for a multi-family property. This will free you up to buy more property instead of chasing down rent and fixing broken pipes.

4. DO NOT try to invest in Real Estate without an attorney, there are too many variables and loopholes for you to know about to do it yourself.

5. Learn how to negotiate. Do not offer them the listed price, you can almost always get it for less than they are asking.

6. Do your homework on a property before buying. Thoroughly check out the physical aspects of the property and the title history and tax history of the property. I know that beginners are eager to close on the deal because they smell the money, and that is great, just do your due diligence.

If I had to pick 3 of these as the most important, it would have to be number 3, 4 and 6. If you are serious about being a successful investor in Real Estate, you cannot grow fast enough if you are managing the properties yourself. Most management companies charge about 10% a month, but what they take off of your shoulders is substantial. As for number 4 on the list, using an attorney may cost you a fee of several hundred dollars at a time, but will save you time and money in the event of eviction or lawsuit ( I don’t mean to scare you with the word lawsuit, but we live in a litigation society, wake up). When buying a property, doing your due diligence and inspection is key to helping ensure that you are buying a sound property.

Keeping these in mind as you are pursuing your Real Estate investing dreams will save you money and help you keep more of the money you earn. Have a great day!

and do nots     real estate