Hard Money Lenders are a Helpful Resource for Real Estate Investors
You’re a real estate investor, in the market to make money.
Sometimes things go wrong that are out of your control. Deals can fall through, financing is sometimes unattainable, properties may need unexpected repairs, and tenants might not pay.
However, even the most experienced of investors make real estate investment mistakes that are avoidable. With thoughtful planning and savvy strategy, you can help ensure your success as an investor.
5 Common Pitfalls to Avoid as a Real Estate Investor
- Be proactive in your property acquisition search:
Real estate agents are an important resource when looking for investment properties. However, relying only on an agent to find potential properties can limit your options. You can open up additional opportunities, especially in a competitive real estate market, by taking the initiative and thinking creatively. Look at all possible sources, from online social platform listings to personal networking, to find your ideal property. - Do the math:
It may seem obvious. But a sound investment strategy and adequate financing are critical factors in real estate. Be sure you have thoroughly crunched numbers and have a clear understanding of the risks vs. rewards before investing. Carefully consider purchase, renovation, and maintenance costs, market values, and profit calculations. Establish clear investment goals. When it comes to knowing your resources and limitations, you are your best advisor. - Know your contractor:
Finding professional contractors for real estate projects requires good research and referrals. And trustworthy contractor relationships take time to establish. When working with a contractor, always be clear about project scope, stay present and communicative throughout the job, and ensure you’re covered with a rock-solid contract. - Prepare for the long haul:
Depending on your real estate strategy, it can take time to achieve a significant return on your investments. Whether investing in rental properties, fix-and-flips, commercial acquisitions, or renovations, don’t expect to get in, get out, and see an immediate return. Do your homework, know your market, and be ready to invest time and dollars up front. And be prepared to commit to your investment goals for the long term. - Just Do It:
Real estate is one of the best long-term investment strategies available. Once you’ve done your research, know your market, have a trusted team of real estate professionals, and are prepared with a budget and strategy, the biggest mistake you can make is to hesitate. The sooner you invest, the greater the returns will be.
Follow these five tips to avoid common real estate investment pitfalls and you’ll be on your way to a successful return.
Finance Your Investment with a Private Money Lender
You’re interested in real estate investing. Is financing or credit a concern? Talk to a hard money lender. Our Gregory M. Russell lending team offers private money loan solutions that can help you build your investment portfolio. We offer fast, convenient equity loans to qualified investors throughout Washington, Oregon, and Idaho. Contact us about easy-qualify loan solutions today.