Whether you are a new investor or a professional like Dean Graziosi, protecting your real estate investment is a top priority, and that means you must make smart business decisions. When it comes to purchasing investment properties, there is no room to cut corners. This holds true no matter if you are buying a rehab or flip property, or if you are buying a long-term rental property.
One of the biggest mistakes newbie investors make is overlooking the need for an inspection prior to a purchase. This one mistake alone can sink you before you even get started. The problem here is that new investors easily get caught up in the moment and they forget that there are good deals in every city and state. Just because a home is cheap, does not mean you should buy it. Don’t be too quick to jump if you have not done your research.
If you are purchasing a property that needs work, not only should you get a proper inspection, but in the case that you still go ahead and purchase the property, it is best to hire a maintenance professional and get things fixed correctly the first time around. Getting things repaired properly the first time will not only save you headaches, but thousands upon thousands of dollars in the long-term.
Now let’s say you find a great deal on a multi-unit building and you purchase it without getting it properly inspected. While it may seem like you have a sound investment, what happens when within a matter of months you find yourself with a leaky roof, air conditioning units that will not work and plumbing problems? Not only will you find yourself with unhappy tenants, or no tenants at all, but you will be left with huge bills that may cost you everything.
New investors should never take maintenance and upkeep lightly. Likewise, if you are renting out your property, make certain you are screening your tenants. Not only do you want them to pay their bills, but you want to make sure that they respect your property. If you have repairs that need to be done and you are not certain you can do them correctly yourself, find a reputable company to do it for you. The bottom line is that mismanagement will put you out of business. Managing your property correctly is the only way to protect your real estate investment.