The real esate business is like running through a minefield. No matter how good you are, mistakes are going to happen. Even seasoned
investors make mistakes. Here are a few classic ones...
1) Lack of Research. This is simply not acceptable in todays market and
should never happen, yet is happens over and over. Why? Often times it is due to an investor being blinded by a low price. It doesn't
matter how low the price is on a property if it's in a bad location. Or if it's unmarketable. Rarely are the lowest priced properties
the best deals. However, low dollars often get in the way of good judgment time and time again. Real estate is part science - and
it can be analyzed and quantified - that's what we have done for over ten years as an appraiser.
2) Getting Lousy Financing. Financing
is the backbone of real estate - it can make or break a deal. Banks keep expanding for good reason - and you have to know how to play
3) Doing Everything on Your Own. There is no substitute for experience, and experience develops expertise. Because
real estate involves huge sums of money, mistakes are magnified. Things can get out of hand very quickly. We prove every analysis
and recommendation we present, and we want you to fully understand it, from every angle. You should insist on as much proof as possible
from everyone. No one can know it all, and mistakes will happen. Stack the odds in your favor.
4) Overpaying for a Property. Too
many investors buy into the concept of a whiz bang website telling them what the market, or a particular property, is worth. As an
appraiser, we realize that research is time consuming and yields a ton of information to sift through. It's not easy - and it never
will be. There is no magic program or website.
5) Underestimating Expenses. Not a biggie - but something that can add up and
eat your profits from under you. 20 minutes of planning can save $20,000. It's time well spent.