Attachment
As I meet more and more new investors out there at events for real estate investing, I find that the biggest mistake made is paying too much on their purchases. There are many reasons for this. First, they get bad advice from a Realtor trying to earn a commission. They don't fully understand the ARV (After Repair Value). Also, they don't understand the true costs associated with selling an investment property. Some of the other mistakes I have been hearing about is that they jump too quickly without doing their due diligence. For example, someone shared with me yesterday about a property that was being sold by a Realtor that was claiming to be a 3 bedroom 2 bath, when in actuality it was a 2 bedroom 1 bath on title. This can be a difference of tens of thousands of dollars. To boot, that extra bedroom and bath is probably illegal.
In conclusion, it is my opinion that in order to be truly successful in real estate investing, one must understand the costs associated with these transactions from start to finish.
Photo:
http://www.prlog.org/
