Real estate investing is becoming more popular nowadays despite the recession. Investors are snapping up properties in hope of selling them for a higher amount in the future. Even those who have day jobs are trying wholesaling and flipping houses. After all, television shows made it appear fun and simple, not to mention, very profitable.
Novices in the real estate investing world though should be wary. There are some mistakes you must avoid as they could give you a bad start in the business. Worse, they could force you to quit and give up your dream of making a fortune through wholesaling and flipping houses.
The first costly mistake is not doing your homework. If your Math teacher in third grade forgave you for not completing your assignment because you had fever, real estate investment isn't as compassionate. A lot of novices, spurred and inspired by how easy television shows make investing appear easy, jump into the pit without arming themselves with the right knowledge. As one seasoned wholesaler said, information always beats money in getting deals done.
Learn to read. Browse magazines about real estate in general. Go online and visit web sites like REIwired.com to learn more about the tricks of the trade. REIwired.com offers premium and accurate content for members so be sure to create a log-in account. You'll find very helpful videos, audio files, and articles at REIwired.com.
The second one is missing estimates by a mile. Forgive yourself if you spent $1,000 more than your repair budget in your first flip. You will hit and miss these targets as you go along. But, to avoid missing far too often and literally paying the consequence, leave 'estimating jobs' to experts ' at least while you're still learning. Hire a professional house inspector in your first few flips to make sure the repair costs are accurate. Once you get the hang of it, you can start inspecting and estimating on your own. Avoid these two mistakes and you'll surely be off to a decent start in your real estate investing career.
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