Common but Potentially Devastating New Investor Mistakes

 Posted on December 00, 0000 in Naperville Real Estate Attorney

Real estate investment can be a lucrative business or hobby, but it should not be embarked upon lightly. The world of real estate investing – be it residential or commercial – is complex and full of potential pitfalls. Fall into any one of these traps and you could be at risk for a financial loss. In contrast, you can increase your chances of turning a profit by avoiding these common new investor mistakes.

Not Having a Plan Prior to Purchase

All too often, new investors get excited about an opportunity and jump on a property before they even have a plan. This is not how real estate investing should work. Rather than purchase a property and then decide what to do with it, you should know what you want to do and then search for a property that fits that vision.

Expecting to Get Rich Quick

Like most honest business ventures, real estate investing is not a “get rich quick” scheme. It is painstaking research. It may mean late nights and early mornings. Sometimes all your hard work pays off. Other times, you realize you have made a poor decision. Learning, growing, and expanding your portfolio, a little at a time, is usually the path to success. Just keep in mind that it will not happen overnight.

Failing to Perform Due Diligence

Although you may have to move quickly on a deal, you should never skip the due diligence process. Instead, you should ensure you check on deeds and zoning issues. Know if there is a lien on the property. Examine tax records to ensure the landowner does not owe back taxes. Better yet: hire a real estate attorney to help you through the process. Not only can this help to ensure you know the truth about the property you are thinking about purchasing, it gives you more time to focus on the other aspects of your investment business.

Trying to Handle the Process Alone

There is a time and place for independence and self-sufficiency, but the real estate market is not one of them. You will need sound advice on tax issues, a sounding board when deciding when and how to invest, and a slew of other helpful aids to assist you through your deals.

Start by contacting Lindell & Tessitore, P.C. for assistance. Experienced in handling real estate investment projects of all shapes and sizes, our Naperville real estate lawyers can help minimize the risk of a poor investment. Call us at 630-778-3818 today and schedule your personalized consultation to learn more.

Source:

http://www.bankrate.com/finance/money-guides/10-lethal-mistakes-for-real-estate-investors-1.aspx