Profits Are Always Number One
The number one tip that I can share with you today is to always remember this is a business. At least if you’re doing it correctly. That means, it’s not how much money you make, it’s how much money you get to keep.
This is especially true for investors new to investing in real estate and are still unaware of all of the costs associated with real estate. Especially the more risky investments of buying commercial and residential properties in the hope of refurbishing and flipping for quick profits.
Often times the investor doesn’t understand the true condition or structural damage that the property may include, nor the costs associated in remedying those problems.
You Get What You Pay For
The second tip is, steer clear of “free” contracts and most other free services. You really do get what you pay for. Paying a licensed attorney to draw up a closing contract for your purchases or rental agreements with prospective tenants may seem like a waste with all of the free contracts available to be downloaded on the internet today, but if there happens to be a problem with your transaction, you may find that the contract has no authority in court. Or worse, that the contract goes against acceptable state laws and is found to be unacceptable by the court system.
Investing in a proper attorney that will defend the contract in court is exactly that, an investment. Or better yet, insurance. Think of contracts written up by professional as such and you will be much better off in the end. If you own real estate, especially as a landlord, it really is just a matter of time before you end up going to court for one reason or another, whether or not it’s beyond your control.
So be prepared from the start.
Education is Power
The more you know, the better off you are in any situation. This holds true for investing in real estae as it would for any other financial endeavor. In most cases, even more so due to the large sums of money that are either gained or lost on these types of transactions.
Educating yourself doesn’t need to be expensive. There are some amazing books costing around $25 easily assessable from online books stores like Amazon.
If you are unsure where to begin, just go to Amazon and type in “Real Estate Investing” into the search bar under “Books”. Then on the right hand side of the menu you will see a way of organizing your search. Choose the “Highest Reviews” option to sort by books in the category that have received the highest customer reviews.
Then click on the top 10 and start reading the reviews. I find a lot are honest and genuinely helpful. In fact, I have made a few valuable contacts from doing this very thing. Simply PM the writer of a particular review you thought stood out and explain how you are also doing the same thing as they are. Then if the person replies, just naturally follow up.
I know there are only three tips in this article. But they are important ones. Follow the advice I’ve outlined above and I can promise you, you will save yourself a ton of headaches later. And good luck with your investments.
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