Are you planning on investing in South Florida real estate? If so, there are a variety of mistakes that any beginner or longtime real estate investor can make which can make things more difficult for them.
In this article, we will provide you with a list of the mistakes that you must avoid making at all costs when investing in real estate.
Without a doubt, this is by far one of the worst mistakes that any investor can make because most investors will be financing their deals.
Bad financing can be classified as a high-interest rate, high monthly payment, balloon payment etc.
Before financing a real estate deal every investor must first make sure that the financing makes sense because if there’s too much personal risk like a large monthly payment. More time should be given to finding adequate financing before closing the deal or else there could be long term consequences from choosing bad financing.
Misjudging Resale or Rent Value
Besides choosing bad financing, another common mistake that many investors make is misjudging the rent or resale potential of the property that they’ve invested in.
Before buying a property, you should always know what’s going on in your target market including what properties in the area are renting for.
Sadly, many individual investors don’t have the right tools or the time to do this themselves, thankfully when you work with a team like the Bryan Orange Group, you can have confidence that you’re making a smart investment every time.
Real estate value always begins with location. The people and businesses who will rent or buy from you begin with the location, and then they evaluate other criteria like the lot and the house.
Because it’s so important, you should study the best and the worst locations in your area before buying. There are investors who make money in bad locations, but it’s a challenging game that beginners should probably avoid.
I bought a lower-priced single-family house once at a below market price with excellent seller financing terms. But the location was awful. I could not consistently attract good tenants because the neighbors were not pleasant (or safe) to live around.
On the other hand, I have bought properties in good locations that I made mistakes on, like paying a little too high of a price. The good location helped to bail me out of some of those mistakes.
Contact the Bryan Orange Group
For assistance with searching for investment properties in South Florida, or to speak with us about our property management services, contact Malico Watson and the Bryan Orange Group by calling us at (786) 606-7227 or click here to connect with us online.