ebook proof read april 25

10 Costly Mistakes to Avoid as a New Real Estate Investor
Most new investors bank on the fact that right off the bat the property is cash
flow positive but they aren’t factoring in all the expenses. If Kathy holds this
property for 30 years without increasing the rent, she would have a 6% total
return on investment. “Six percent is not horrible, but any type of balance
mutual fund over 30 years has done 6%.
Error No.2 Example: Banking on the Property Value Appreciating
One of the reasons so many people can get into real estate investing is
because they can borrow money to purchase a home. This works when home
prices are on the rise, but as we saw in 2007, prices can’t rise forever.
Leverage is what draws investors in when real estate values are growing,
but if the value of a property decreases, the investor using leverage will not
only be multiplying losses on the investment, but interest payments on
the loan will also continue to build up. Be careful using debt to generate a
return. Take your time and calculate your expenses properly and this will
help you increase your monthly cash flow in the short and long
term. 50
10 Costly Mistakes to Avoid as a New Real Estate Investor