Twelve Deadly Mistakes Real Estate Investors Make
Twelve Deadly Mistakes
Real Estate Investors Make
and How You Can and Must Avoid Making Them
Mistake # 1. Spending thousands of dollars buying books, tapes and attending seminars and then putting all of that information on a bookshelf and never looking at (or using) it.
Comment: I'm continually amazed at the number of "would be" investors who have spent a bundle of money attending seminars, getting an education and then never using it to start
their investment program. Not only is it a waste of thousand of dollars but it could be the biggest financial mistake you can make.
Mistake # 2. Failure to learn the basics of real estate investing.
Comment: The other extreme to Number 1 above, are potential investors who realize real estate is the best way to accumulate wealth and venture into the purchase of properties without knowing the basics of real estate investing. Those investors are almost certain to get into financial trouble.
Mistake # 3. Fear of making a huge financial mistake
Comment: We all fear making mistakes, especially a large financial one. If you follow the advice in Number 2 above, you won't have to worry about making a financial mistake.
Mistake # 4.
Not looking at enough properties
Comment: Don't fall in love with the first property you look at. Too many investors buy properties because they "look nice" or they are just to lazy to see what else is currently on the market that may be better. Part of sound real estate investing is in giving yourself a choice so you can select the best one, financially.
Mistake # 5. "A better deal may be just around the corner" syndrome
Comment: This is the opposite mistake of Number 4.
This investor never starts his or her real estate investment program because they always hope a better deal may be out there somewhere
if they just wait...and wait...and wait.
Mistake # 6. Thinking that real estate investing is strictly a complicated game that only the wealthy can play.
Comment: First of all real estate is NOT complicated if you learn how to do it first.
Did you know that even professional investors use a simple nine step process to analyze the financial feasibility of an investment property?
Here's a brief idea of the nine simple steps they use in analyzing any type or size investment property.
A Basic Financial Property Analysis
1.
Scheduled Gross Income (Income if 100% leased)
2. Less: Allowance for vacancies
3. Operating Income before expense & Mtg. Pmts.
4.
Less Operating Expenses (Taxes, insurance, utilities,
repairs and maintenance etc.)
5. Equals: Operating Income (Income before Mtg. Pmts.)
6. Minus: Mortgage Payments
7. Equals Cash Flow
8.
Plus: Mortgage Principle Payment
9. Total Return
There's a lot more to it than that, but you just read the basic nine step procedure most professional investors use when analyzing any income producing investment property.
Mistake # 7. Falling in love with a property
Comment: Once you get your feet wet and become a real estate investor, you'll wonder why you waited so long to begin. Now you'll face another problem.
Many investors fall in love with their property. They have seen how well it is doing, cash flow has been going up each year, and they have fallen in love with their tenants (not literally). Two big mistakes are made here.
First, never fool yourself into thinking your property is doing too well to sell or trade up because your cash flow is considerably higher than when you purchased the property.
The second part of mistake number 7 is getting so friendly with your tenants that you fail to maintain rental standards based on what the market will bear.
This greatly hinders your growth potential.
Mistake # 8. Failure to plan your financial goals
Comment: Before you purchase that first property, which, of course, you financially analyzed, determine what you expect from your investments?your financial goals.
It's known as "The 'time vs. money'" concept.
The more you have of
one the less you need of the other in order to reach your financial goals.
Mistake # 9. Trying to purchase properties that the seller is not motivated to sell
Comment: I've seen potential buyers continually try to purchase investment properties that
are not really on the market. This includes property owners with the attitude that "Sure, it's for sale? for a price". Unfortunately the ?for a price' part usually means it will make no financial sense for a buyer.
Mistake # 10. Believing you can get rich quick overnight with no money
invested of your own.
Comment:. Getting rich overnight will not happen . .
. (regardless of what some of the so
called "experts" tell you). It takes some time, effort and knowledge of real estate investing to do
it with minimum financial risk.
The important thing to remember is that YOU can do it, too. You can join the millions of investors who create sizable incomes by investing in real estate.
Mistake # 11.
No money down investing usually isn't.
Comment: Somewhere, somehow there will be some money required to put a transaction together and make it profitable.
It may be closing costs, repairs or upgrading, whatever. But somewhere, some money will be needed. There are ways around this problem without getting into a high risk situation.
You may be able to finance every dollar you need, but it can come back to haunt you in the form
of mortgage payments you cannot afford to make.
Again, learn what you are doing first.
Mistake # 12.
Not financially analyzing a potential investment property.
Comment:
This is the most serious mistake an investor, or potential investor, can make.
I've seen a few pros in the business rely on a "worthless and inaccurate" rule of thumb to make a huge financial decision to purchase, with total disregard for how well the property will perform.
Oh, yes, there is one more major mistake many investor make:
Mistake # 13.
Thinking it's important to pay off your mortgage as soon as you can
because mortgages are a 'necessary evil'.
Comment:
First of all as a real estate investor, mortgages are good and not a necessary evil. You must learn why this is true. You must learn how, in the right situation, a second or third mortgage can be a good thing.
Second: mortgages are one of the keys to creating wealth in real estate.
You must learn how to use financing as one of the keys to creating your own financial estate, without concern for it being "risky".
Milt Tanzer
.
Banking on the Future of Technology ... New Era Capital Corp Poised To Broaden E-Business Portfolio
New York, NY (ContentDesk) November 16, 2005 -- New Era Capital Corp, a New York City based financial services firm catering to mid-market investors and business owners is poised to expand its e-business portfolio over the next 12 months through acquiring or developing new e-ventures, principally; MyBzCenter.com? -- an interactive small business solutions portal. It recently launched a corporate domain at www.New-Cap.US. Already, New Era Capital Corp has successfully launched and currently operates www.MyCompletefinance.com? -- the first fully integrated and interactive financial portal specifically targeted to mid market investors and business owners. The continued success of this portal is one of the motivating factors for the aggressive foray into the e-business arena by New Era Capital. The rapid growth in bandwidth coupled with the steady rise in the usage of broadband...
Banking on the Future of Technology ... New Era Capital Corp Poised To Broaden E-Business Portfolio
Financial planning > Banking on the Future of Technology ... New Era Capital Corp Poised To Broaden E-Business Portfolio
Bad Credit Loans ?A Remunerative Base For All Financial Troubles
Nowadays, with increasing demands and lavish lifestyle, an individual starts spending so extravagantly that it urges him to borrow more and more money. As a result, he is burdened with multiple debts. These debts might be those, which one is unable to pay leading to the problem of arrears, defaults, county court judgments and even bankruptcy. Because of this one is labeled as a bad debtor. To help you out in these adverse circumstances, there are bad credit loans.
Bad credit loans are specifically tailored for those who are facing a financial crisis.
Earlier, people with a bad credit history were denied of getting loans. But now the scenario has changed. The borrowers can use money drawn from the loan for different purposes. Some of these include debt consolidation, home improvements, meeting wedding expenditure, purchasing a car or house.
Bad credit loans can be opted in any of the two forms- secured or unsecured.
Your home,...
Bad Credit Loans ?A Remunerative Base For All Financial Troubles
Financial planning > Bad Credit Loans ?A Remunerative Base For All Financial Troubles
Twelve Deadly Mistakes Real Estate Investors Make
Twelve Deadly Mistakes
Real Estate Investors Make
and How You Can and Must Avoid Making Them
Mistake # 1. Spending thousands of dollars buying books, tapes and attending seminars and then putting all of that information on a bookshelf and never looking at (or using) it.
Comment: I'm continually amazed at the number of "would be" investors who have spent a bundle of money attending seminars, getting an education and then never using it to start
their investment program. Not only is it a waste of thousand of dollars but it could be the biggest financial mistake you can make.
Mistake # 2. Failure to learn the basics of real estate investing.
Comment: The other extreme to Number 1 above, are potential investors who realize real estate is the best way to accumulate wealth and venture into the purchase of properties without knowing the basics of real estate investing. Those investors are almost certain to get into...
Financial planning > Twelve Deadly Mistakes Real Estate Investors Make
New Book, Child of an Alcoholic to Daughter of the King - Offers Hope and Sound Advice to the Abused, Follow Chris as She Comes Out of the Sadness into an Understanding for a Happy and Victorious Life
Jasper, GA (ContentDesk) August 23, 2004 -- Born Christine Turner, she grew up in California, niece of a famous Hollywood designer, cousin of a producer, related to prominent people that she never got to know.Her childhood was full of secrets she could not tell. She was one of the children that former Governor of California Ronald Reagan tried so hard to help during his time in office. This is a timely book, since now California is debating whether or not to reverse the former governor's bill that would once again allow the state to send mere runaways to mental institutions, Chris' letter to Ronald Reagan was one of the reasons the bill was passed. She couldn't tell why she ran away; she is telling now. Her bookoffers hope and sound advice to the abused, as an extremely interesting life-so-far story.
Follow Chris as she comes out of the sadness into an understanding for a happy and victorious life.Chris Bartholomew resides in Jasper, Georgia, with her husband and two of their...
New Book, Child of an Alcoholic to Daughter of the King - Offers Hope and Sound Advice to the Abused, Follow Chris as She Comes Out of the Sadness into an Understanding for a Happy and Victorious Life
Financial planning > New Book, Child of an Alcoholic to Daughter of the King - Offers Hope and Sound Advice to the Abused, Follow Chris as She Comes Out of the Sadness into an Understanding for a Happy and Victorious Life
Kemba Credit Union Chooses CoreTrac to Manage Production
AUSTIN, Texas (ContentDesk) January 17, 2006 -- CoreTrac, Inc., provider of ResourceOne, the simple and affordable CRM/Sales Force Automation solution for community financial institutions, today announced that Kemba Credit Union Inc. of Cincinnati, Ohio will integrate ResourceOne to track leads and referrals and manage their production.
For more than 70 years, Kemba Credit Union has experienced positive growth and today operates eight branches and exceeds $300 million in assets. The team at Kemba Credit Union will use ResourceOne to track employee incentives, create custom sales reporting, and integrate multiple sources of data for one complete picture of member and prospective-member relationships.
Steve Behler, President/CEO of Kemba Credit Union, stated, We selected ResourceOne to assist us in managing member relationships, to ensure that our members are fully apprised of all the financial solutions we can offer them.
Specific benefits of ResourceOne include...
Kemba Credit Union Chooses CoreTrac to Manage Production
Financial planning > Kemba Credit Union Chooses CoreTrac to Manage Production
How Much House Can You Afford?
Your mortgage calculator says: probably a lot less than your mortgage banker says you can.Sometimes you can qualify for a loan but you should not accept it. Why? The monthly payments are more than you can afford. There are lots of laws in place at the state and federal level to protect customers against predatory lending, but there are still many customers around who will find that six months to a year into their loan they might have to give up their house. They cannot afford the upkeep, insurance and mortgage payments. Your mortgage banker is giving you an estimate of how much they think you can afford, typically based on raw numbers such as your credit score, income, and available cash.
What is not included in this equation is the human factor:
Your spending habits.
One way to quickly look into your financial future is to use a mortgage calculator.Take an independent inventory of your financial situation before you approach your mortgage broker, then compare...
Financial planning > How Much House Can You Afford?
Financial planning
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