Common New Investor Mistakes

Common New Investor Mistakes
05-28-08

Are you new to real estate investing? If so, you are bound to make some mistakes along the way; this is quite common. But as you can imagine, avoiding as many mistakes as possible will help you to succeed at a much higher level.

Learning from mistakes of others is a great way to avoid these downfalls on your own. Here are three common mistakes that new real estate investors often times run into.

1. Never get in over your head. Before you purchase an investment property make sure that you have the knowledge and skills to make things work. Many people think that they have found a gold mine, just to find out that they underestimated the time and effort that the property requires. By doing your research before buying, you will be able to avoid this common mistake.

2. Once your home is ready to rent out, do not ask too much of interested parties. Remember, the average market value is going to determine how much you can ask for rent. If you are asking too much, it is safe to say that potential tenants are going to run in the other direction. You need to be reasonable when setting the cost of rent. If this means less money than you initially thought, so be it. Remember, any income is better than having your home sit empty for long periods of time.

3. Thinking that you can do everything on your own will kill your real estate investment from the word go. You need to have others that you can rely on. Not only does this mean a friend or family member to act as a sounding board, but you should also consider hiring contractors for jobs that you cannot do on your own. Knowing when to ask for help is a very important part of being successful with real estate investing.

These three mistakes are very common, but fortunately, they can be avoided. Do yourself a favor and stay away from these mistakes at all costs. This will help you to realize your potential, and hopefully put money in your pocket before you know it!

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000