Most Common Mistakes to Avoid for Beginners in Real Estate Investing

Beginners tend to make same mistakes. Here are some things to do and not do that reflect common mistakes often made by beginners. [panel-image src="http://moneygizmo.net/wp-content/uploads/2011/10/flying-house-300x243.jpg"] Common real estate investing mistakes [impt text="Don't fall in love with your investment property."] This is not your home, you're not going to live in it, and it doesn't need to reflect your personality. Do what's necessary to create a safe, sanitary, attractive home for your tenants, but don't lose money with unnecessary enhancements. [impt text="Know your market."] Take the time to learn your market before you buy your first property. Search for this best bargain out there and think proactively before you buy. Don't be emotional, be rational in every decisions you make. [impt text="Do your diligence."] Thoroughly research a property before you buy. You have to search as many as you can. One technique is the 100-10-3-1 principle, where you choose 100 property listings that you find, then from there choose 10 properties that appeal to you, afterwards negotiate and visit on 3 properties and lastly go for a close on one property. [impt text="Do a thorough screening"] on all of your tenants. Set standards and stick to them on screening your tenants. You should make a thorough screening for you to avoid future problems with them. Make sure that you have their character references so that you can check if they are worthy of your time. [impt text="Don't break your own rules."] If your rental agreement calls for a late fee, collect it-no matter what the tenant's problems are. Be sure every tenants follows the rules and faces the consequences. Just always stick to your rules because its your business. Do not allow your emotion be inclined on giving them favor. Make sure that you always respect them for whatever means.

Mark Hugh Neri

Read more posts by this author.

Subscribe to Money Gizmo

Get the latest posts delivered right to your inbox.

or subscribe via RSS with Feedly!