Posted by DTom on March 27, 2006 at 12:32:32:
Thank you Natalie!
What mistake would you avoid …? - Posted by DTom
Posted by DTom on March 27, 2006 at 24:32:28:
What mistake would you avoid in real estate investing?
I would rather that you email me the mistakes you would never repeat again, or all those you know an investor should avoid.
Thank You Very Much!
D Tom
Re: What mistake would you avoid …? - Posted by Berno
Posted by Berno on March 28, 2006 at 09:50:18:
Don’t bite off more than you can chew.
I had rehabbed a couple of homes so I thought I could tackle anything. I bought a termite and water damaged home in a bad area and put a lot of sweat into it. I found out that the project was going to take MUCH longer than I had thought. Good thing I got it pretty cheap. I ended up putting it on the back-burner and doing other deals instead! The only deal that hasn’t turned out for me so far…although I still own it and I MIGHT get around to finishing it up some day!
Re: What mistake would you avoid …? - Posted by Bill
Posted by Bill on March 27, 2006 at 23:16:45:
If your friends are negative thinkers. Change the people you hang out with. Avoid negative thinkers.
Re: What mistake would you avoid …? - Posted by MARK
Posted by MARK on March 27, 2006 at 16:33:04:
DONT BUY HIGH AND SELL LOW : (
Re: What mistake would you avoid …? - Posted by george
Posted by george on March 27, 2006 at 12:59:33:
I wasted a decade wrestling with low income and blue collar rentals that were a landlording hassle, had no appreciation nor a broad retail market.
It wasn’t until I moved up to the middle spectrum that I started making real money.
george
Re: What mistake would you avoid …? - Posted by Natalie-VA
Posted by Natalie-VA on March 27, 2006 at 11:29:39:
Don’t take anyone’s word on anything, especially when it comes to value and condition. Verify these things for yourself.
–Natalie
Re: What mistake would you avoid …? - Posted by Chris in FL
Posted by Chris in FL on March 29, 2006 at 10:24:19:
First, I have spent 8-9 years doing blue collar rentals, in a great market, and have made over $500K. If I had been more aggressive, I could easily be a millionaire already. Keys to success in blue collar rentals: 1) buy low; make your money when you buy. 2) make your place nicer than the other guys and rent for slightly below market, allowing you your pick of applicants (almost everyone that looks at my houses fills out an appl.). 3) screen tenants well, and before moving them in, find out if they have taken care of their previous home - yes, that means you have to “drop by”. 4) I don’t worry much about credit if everything else looks good, but I do want to know they pay their rent, and I don’t give out a key without certified funds. 5) lastly, consider lease/options as a way to increase cash flow, reduce repairs, and get tenants that think like owners.
Note: I started with blue collar because it was all my budget would stretch to, and because everything I owned had to cashflow. I have since started a gradual plan to trade those properties up, but I don’t regret for a second how I got started (just wish I had bought more sooner).
Also, wasn’t this supposed to be about TAX mistakes?
Re: What mistake would you avoid …? - Posted by Rich
Posted by Rich on March 27, 2006 at 21:12:32:
I would add, make sure the seller has the legal right to sell. Such as a divorce case where the judgement is being appealed.