Florida Real Estate Investing, What Not To Do
Topic: real estate, REI, Florida, article by Mike Hargrave
You’ve read a flew blogs like this one, talked to some friends who have invested in Real Estate in the past and now you are ready to follow suit of investing in Real Estate. You don’t really care that it’s not the right time, you’re tired of watching everyone around you making easy money. So, you go online and start looking at properties, maybe even contacting a realtor for advice. That was your first mistake.
Great deals are not going to be found online. They are not listed on the MLS (Multi Listing Service) or by a well-known real estate agent. Websites such as Property Onion offer tools for premium members to see all HUD, County Foreclosures and Tax Deed Auction Sales all in one place, including calculators and investing documents, to get a potential investor started.
Another mistake investors make is that they think it’s easy to get renters in at a fair price and not worry about the property. Good renters, meaning people who treat the property with respect, pay on time and pay what you ask, are going to demand that the property is well maintained and taken care of. Less than savory renters are going to pay late and not respect a property. You also will have the challenge of finding renters. Therefore, it’s important to not jump into something with both feet until you are confident in your investment or have experienced guidance to help.
You must set realistic goals for yourself. A very common mistake is that investors think about buying a property and flipping it within six months to a year to get a quick profit. What happens if the market value goes down or if you cannot find a renter or if you need to make repairs or other unforeseen issues? Are you prepared for this, are you financially able to handle possible holding costs for an extra year or two as the market rebounds?
Whether flipping homes, or purchasing a long term buy and hold rental, investors who do their due diligence are much more likely to have repeated successes. While no deal is perfect and everyone is bound to make some mistakes, those who learn from them and set up protocols and processes to avoid making them again in the future put themselves in a position to succeed going forward. These are all things that you need to consider before you dive into real estate investing.