Risk vs. Reward
Real estate investment is an appealing way to invest today, but it does not come without Risk. We understand that managing your Real Estate portfolio there are many things that you must take into consideration when making an important decision. You do not have to be an experienced Investor to know that you must take into consideration the Risks and the Rewards with each purchase.
Recently I cam across a list of mistakes made by real estate investors, according to Bankrate. They include:
Not planning up ahead.
This includes planning for things like:
- Major Repairs
- Loss of Rental Income
- Loss of Value of the Investment Property
To believe you can make money quickly.
If this were true there would be a lot more people doing it. There is money to be had, but behind that money is a lot of hard work and effort.
Read Also: Why do people use hard money?
Leaving out the groundwork.
Do you know if there are planned zoning changes that would affect the property? Are you aware of the laws that may affect your purchase? What about what is happening in the Real Estate market and how that may affect the value of the property in a year, five or ten years from now.
Read Also: Commercial Real Estate Investment – What not to do!
Miscalculating money flow.
Investors whose strategy is to buy, hold and rent out properties need to ensure sufficient cash flow for maintenance. Property managers could be expensive and the owner has to incur more expenses such as mortgage, taxes, insurance, advertising costs etc. Investors have to allocate their budget such that all these expenses are taken care of, or end up having their asset turn into a liability.
Read Also: Handyman Specials and Fixer uppers; are they good investments?
Thinking of selling your Western New York home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.
Thinking of selling your Erie County home? Interested in finding out the current market value of your single family home, condo or investment property? Then call www.BestBuffaloHomes.com at (716) 650-0051 to discuss what is happening in today’s Western New York Real Estate Market. We would be happy to give you a personalized Comparative Market Analysis for your home or assist you to purchase a home. View additional WNY Market Area Statistics here.
Our Featured Homes for Sale:
All Statistics are gathered from the Buffalo Niagara Association of REALTORS®. Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2011 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
All Statistics are gathered from the Buffalo Niagara Association of REALTORS®.
Properties found on this Web site may be listed with a brokerage other than the owner of this site and are displayed here via the Internet Data Exchange (IDX) system of this broker’s MLS. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing nor displaying broker shall be responsible for any typographical errors, misinformation, misprints, and shall be held totally harmless. © 2011 Western New York Real Estate Information Services (WNYREIS), LLC. All rights reserved.
