ebook proof read april 25

10 Costly Mistakes to Avoid as a New Real Estate Investor
In regards to fixer upper properties, many new investors end up paying far
too much. They often have no idea how much the repairs/upgrades will cost
so when they pay over the asking price and then fork out for the work, they’re
often left disappointed when the extra cash injection doesn’t lift the
property’s value by the same proportion. That’s why it’s so important to be
mindful of the ceiling price on the property when investing in a property. It’s
always crucial to know the recent sales in the area and work out what’s
realistic for your investment objectives (whether it’s for a quick fix and flip or
long term rental investment).
New investors buying for the fix and flip property should avoid paying more
than their intended investment price because they may put themselves at
grave risk of negative equity if property prices fall (unless they plan on
holding it for the long term).
Whenever you’re looking to buy a property as an investor (especially a new
investor), it’s a standard practice to ignore the asking price. You should
instead look at recent sold prices within the past few months. One of the best
ways to estimate the value of a property is to find out what similar properties
in the area recently sold for, known as “comps,” or “comparable sales.”
Looking at what other properties in the neighborhood are listed for helps as
well. But you usually get the most accurate picture of local property values by
looking at the price someone actually paid. “Ideally, you’ll be able to find at
least three comparable properties that have sold recently in the same
neighborhood.”
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10 Costly Mistakes to Avoid as a New Real Estate Investor