How to Invest in Real Estate During 2018 with Low-Risk Probability?
You know most real-estate investors never get started because everyone faces the same problems. The biggest problems we all face is where do I get the money. You may also be asking, where do I come up with a down payment? How to do I pay for the fix-up and repair costs if I wanted to flip a house? If I don’t have the money, where does all this come from? Well, answer to that is simple, you can avail hard money cash loans with relative ease. However, to make sure your real-estate investment is generally free of any risk, there are some ground rules to keep in mind.
Accordingly, if you want to make big profits, there are some key mistakes to avoid. Here are the top 3 mistakes you can make when it comes to Real Estate Investing in Houston TX.
Avoid Poor Planning:
When you step into a new investment opportunity, let’s say you get your offer accepted today, well you are going to have two to three weeks until you close on the property. Do you buy, whether it is through hard money, private money or some other source? Regardless, of that, you essentially have three weeks to do proper planning. Make sure you get your dumpsters ordered so the dumpsters are delivered on day one. Make sure that you can review with your contractor multiple times, the budget the schedule the scope of work, because every single day you own that property, it’s costing you money, it’s costing your property taxes, utility bills and financing costs from your lender. So, make sure several times before closing, you and your contractor are on the exact same page. And one day one, the project is started. This way, you can ensure that you have a Low Risk Investment in Houston TX.
Missing the after-repair value:
Often is the case when you will see a house that has been listed for 150 and then there is a similar house across the street that may be listed for 190, so what is the difference between the two? Yes, these two homes may be similar, but the differences are the fixtures, the finishes, and the extras, meaning if one house has a three-car garage instead of a two, does one house have a larger backyard? Does it have a finished basement? Does the house have better materials such expensive wood flooring and similar details? These details really matter. So, you need to make sure that your home, after you have gone through all the renovation, should have the same value or better than the house across the street which is like the property you are buying.
Under budgeting the repairs:
The third biggest mistake you can make is under-budgeting the repairs. Also, making the mistake of not being on the same page as your contractor. Therefore, you have three weeks to make sure, that you and your contractor. Whether you are doing a minor rehab or a full rehab. Make sure you understand exactly what’s going on your property so that there are no last-minute changes, they are not under budgeting the repairs. In a nutshell, every dollar you go over budget is a dollar less profit for you!