Eliminate Risks
in
Real Estate Investing!

 Avoid 16 Common Mistakes
 Made by
 Investors To Ensure High Rates of Return!

  Real estate investments can represent positive cash flow, tax benefits and satisfaction of making an impact in
  others lives. Like any investment, however, real estate has unexpected nuances and market trends that when
  not recognized or ignored, can inflict reverse expectations in the outcome.

  Many first time investors (and even season veterans) are willing to part with their hard earned cash without
  taking the time to do their research!  Instead, they may rely on traditional trends, gut feelings, or even the
  recommendations of those who are not real estate professionals.

  Before you risk your investment take the time to learn all you can about your market. By aligning yourself
  with the right professional you can avoid these 12 common mistakes and you’ll ensure an excellent return on
  your investment.

  1.  Having a well thought out business plan, being financially prepared, knowing the process,
  mechanically, technically, and legally, having current reliable data, property access, deep research,
  professional recommendations, and the ability to make fast, informed decisions are all key to a successful
  investment purchase, business, and career.

  2.  Honesty and loyalty will pay huge dividends over the long haul.  Namely, using an professional Buyers
  Agent to represent you in your transaction, not just as an information gofer, as to many investors set out to
  do.

  Keep in mind, if real estate agents are asking you all the time if you are working with an agent yet, or if
  you are an investor, it's probably because they have experienced more than once, where potential buyers will
  role play with them, and, they have learned over time, some buyers are using them as an information resource
  and may have an agent already or never intend to use an agent at all when making their purchase.  This not 
  only gives investors a poor reputation, but it is being pound foolish in the long run. 

  Gifted agents, if a relationship of honesty, loyalty and respect is built, can pay the investor huge dividends in
  return.  Wouldn't you suppose a loyal investor would get routine calls from "their agent" when they spot a
  good buy, or know of a property coming onto the market soon....alerting you far in advance of anyone else? 
  Of course they would!  And they would work overtime in your best interest every chance they could as well.

  3. Failure to Determine the Pros and Cons and Your Timeline - Cash flow, capital appreciation, tax
  benefits, loss of management, equity pay down and pride of ownership are just some of the things that need
  to be addressed before you make that investment. A service minded real estate professional can be a
  tremendous asset by taking the time to evaluate your needs and making sure you’ve got all your bases
  covered.

  4.  Using well intended advice of inexperienced friends, relatives, and co-workers!  Remember, just
  because a person purchased one or two houses in their lifetime, it doesn't make them an
  expert.  One more reason why a real estate professional (specifically a Buyers Agent) should always be used
  when making a purchase.  So be careful when you are getting advice.  Friends, relatives, and co-workers may
  offer you lots of advice, but how reliable is the information as compared to recommendations coming from a
  licensed real estate professional who is required by law to partake in continuing education and who works in
  the profession, often 6-7 days a week?  Is there any comparison?

  5. Not Checking out the Seller or Sellers Agents claims. Claims of extremely high rates of return run
  rampant in real estate investment. Don’t get caught up in the excitement - check everything: rents, payment
  history, taxes, expenses, deposits, future modifications...everything. Again, having an "Experienced Buyer's
  Agent is  paramount --- and please, intend to use them!  They will be your most valuable asset in your quest
  for a property!  It’s like having a good insurance policy against overlooking all the seemingly insignificant but
  very important details.

  6. Forgetting You Are Buying a Business!   Owning investment property carries with it great potential for
  creating wealth and... some potentially difficult decisions.  Evictions, re-investment into the property, time
  management all need careful consideration. Remember this is not a ‘hands off’ business.

  7. Avoid Negative Cash Flow!  Property that pays out more than it take in every month (or even
  sporadically) can drain working capital. This brings about stress, frustration and become a tremendous
  financial burden that could lead to foreclosures or even bankruptcy. Predicting consistent appreciation is
  extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to
  sell the investment before the benefits of ownership are even realized.

  8. Failure to do a Thorough Inspection!  WOW, this is a biggie!  Look under every rock!  Hire a  
  professional inspector.   Your Buyers Agent most likely can recommend several.  Ask the tenants about
  pest problems, structural damage, plumbing leaks, leaks in the roof, drains stopped up, or reoccurring
  problems. Don’t overlook anything! A value driven real estate professional will help you find the right inspector
  and can find ways of getting informtion from sources the seller may try to shield.  This effort will help you avoid
  costly mistakes. When investing your hard earned money be sure and use sound business judgment!

  9. Failing to Have Adequate Insurance!   Investment property brings liability. Tenants, cars, parking lots,
  cleaning facilities, property liability - the list is quite extensive. Adequate insurance coverage is an absolute  
  must! Be sure to consult with an insurance professional and protect your hard earned assets.

  10. Inspect, Approve, and Confirm All Documents! The list of documents that need to be proofed can be
  overwhelming to the first time investor. One more reason investor (veterans and novices alike) should be using
  the FREE services of a licensed real estate Buyers Agent! 
 
  Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan
  documents, CC&R’s, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance,
  the escrow perocess, and negotiating techniques, and strategies.  Don’t attempt to do it alone. This is where a
  trained professional will get you your biggest return!   Not only that, they remove most of the stress and bring
  the transaction to a conclusion smoothly.

  11. Get a Bill of Sale For All Property Involved!  Many types of personal property (appliances, furniture,
  fixtures, etc.) can be involved in an investment sale. Be very detailed...know who owns what!

  12. Research Comparable Rents!  Vacancies, turnovers and lease terminators are your biggest expense.
  Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It’s a lot
  less costly in the long run to take care of the little problems before they become big problems. Vacant
  property is your Achilles heel.

  13. Select Qualified, Good Tenants From the Start!!   landlords, employers, financial references, credit,
  judgments are all vitally important. If there are any questions, do a  thorough investigation. Drive by their
  previous residence. A little work up front can save tremendous and problems later on down the line. 

  Important:  Here are two very good online links to use:  Background checks  and  People Find.

  14. Make Sure You Get an Estoppels Letters!  Obtain letters from tenants confirming the status of tenancy.
  Make sure their version of the rental or lease agreement corresponds with your, the sellers, and the listing
  agents interpretation. 

  15. Don’t Spend Positive Cash Flow!   Most successful investors have free and clear properties. Be sure
  to re-invest your cash flow back into the property payment and speed up the amortization schedule. This
  decreases your debt load and increases your equity... which builds your net worth. Investment property can
  be one of the most rewarding aspects of your financial portfolio. Be certain to have all your ducks in a row
  before you invest. Do your homework! Consult with a professional Buyers Agent and relieve yourself of the
  hidden troubles that can plague first time investors.  Be sure they have experience working with foreclosures!

  16.  If it's a Pre-Foreclosure Property, be prepared to take up to 3 weeks for a reply to your offer. 
  Especially if its a Short Sale where there are multiple lien-holders, and the payoff is more than the offer and/or
  the property value!