When you are just getting started with real estate investing, you should not expect to become an expert overnight. Sure, buying and selling properties can help you make profits, but Asaf Izhak Rubin says that it takes skill, determination and knowledge to make it happen. Moreover, it can also help you to know some of the common mistakes that many real estate investors make, so you can avoid making the same. Are you ready to find out what they are? Take a look below:
- Not making a plan
According to Asaf Izhak Rubin, the worst thing you can do is buying a house first and then trying to figure out what to do with it. When the market is hot, it can be tough to resist a buying frenzy, yet you have to rein it in. Before you plunk down any cash, or get a mortgage, you have to have an Indonesia Investment strategy in place. What type of house do you want? Are you looking for a vacation destination, or multi-family home? You first have to develop a purchase plan and then look for properties that go with it.
- Skipping the research
When you are shopping for a television, car, or even a phone, what do you do? You compare different models, check features and ask a ton of questions before you make a decision. As per Asaf Izhak Rubin, this is exactly what needs to be done when you are shopping for a house. In fact, the due diligence you do for purchasing a house should be even more intense and rigorous because it is a major purchase.
Moreover, you should bear in mind that the research considerations will depend on the kind of real investor you are. Are you a future landlord, homeowner, land developer, or a flipper? You need to ask questions about the property you are getting, along with questions about the neighborhood.
- Doing everything yourself
A lot of real estate investors believe they can do everything on their own because they know everything important and relevant. Sure, you may have done a deal or two in the past, but Asaf Izhak Rubin suggests that you always get the opinion of an expert before the deal is done. It is wise to tap into every resource that you have available in order to make the right purchase. Markets tend to move up and down and just because you have had a good experience in the past is no guarantee it may happen in the future as well.
- Forgetting the local market
It is essential for every real estate investor to understand the local market before they make purchase decisions that can help them turn a profit. You need to have proper knowledge about property values, land values, supply and demand issues, inventory levels and plenty other details. This knowledge can come in handy when you have to decide if you should purchase a property that is available for sale or not.
Your search for the perfect house can feel time-consuming and frustrating. Therefore, when you finally find the one that hits right, you are anxious to get it. Asaf Izhak Rubin says that the problem with this anxiety is that it often pushes people into overbidding because they do not want to let it slip from their hands. You have to remember that doing so can have a waterfall effect. You could end up taking on too much debt to pay for it, or may have to make higher payments than your budget allows. Consequently, it might take you a long time to actually make a profit on your investment.
Asaf Izhak Rubin advises that you keep your bid consistent with the value of the house because there will always be other opportunities. Even if the negotiation process fails, there will always be other houses and you just need to be patient.