Real estate has the incredible potential to provide growth through appreciation and generate monthly cash flow, but unfortunately many investors make mistakes that cost them time and money. Most of these mistakes could easily be avoided, had the investors known what steps to take in advance.
Here are three of the most common real estate mistakes:
1. Seeking a Get-Rich-Quick Scheme
Investing in real estate has made many investors wealthy. Numerous individuals have funded their retirement, and even created assets to pass onto future generations. Although investing in real estate has been a successful endeavor for many, those who sought it out as a “get rich quick scheme” rarely found what they were looking for.
At nearly any given time, if you know where to look, there are a number of real estate markets that are poised for growth and some that are even skyrocketing. Those investors looking to chase after a “hot market” are often left with a very narrow entry window, a higher level of risk, and even the potential to miss the trend altogether. In fact, chasing hot markets like this can lead to properties being overvalued and then having the trend fizzle out with a decrease in value quickly.
Instead of chasing after fast trends and hoping to make a quick dollar overnight, a better strategy is to choose strong markets from the start and watch them grow over time. Markets based on stable local and regional economies, and fueled by strong and diverse job markets, can help investors find growth and cash flow without high levels of risk.
2. Limiting Your Investing Opportunities to Your Own Backyard
Another common location-based mistake many investors make is limiting their search to their own “backyards.” These are familiar territories that are typically in close proximity to their primary residences.
By limiting the search to one geographic area, investors could be missing out on valuable real estate investment opportunities in profitable markets throughout the country. To remedy this, it’s necessary to do extensive research. Ideal rental properties are located within markets that have an increased demand for skilled workers, good school systems, low crime, and a median monthly rent that equals the average household wage.
3. Doing it all Yourself
After an investor has found a solid income property in a good neighborhood, the work has only just begun. Now it is time to take care of any repairs and rehab to ensure that the property can not only get the highest rent but also attract quality tenants. From there, the work continues with collecting rents, performing maintenance on the property, and answering maintenance calls that come at all hours of the day and night. All of this can be overwhelming, and being a landlord can feel like a full-time job.
Although there is a fair amount of work that is associated with an income property, working with a property management company can help investors take advantage of those prime real estate markets, while removing the need to worry about performing maintenance, finding tenants, or even collecting rent. Additionally, if an investor does choose to invest remotely, it’s necessary to do extensive due diligence to find a suitable property management company they feel they can trust.
An Easy Way To Own Income Properties
Even many of the most experienced investors still face the problems listed above, but HomeUnion has created a one-of-a-kind solution to investing in single family rental properties that easily addresses those problems and takes the headache out of investing. Here’s how HomeUnion makes it easy to invest in single family rentals:
1. We Talk with Investors
HomeUnion starts the process by talking to investors and listening to what their goals are. We’ll then create a custom-made real estate investing strategy, so the investor can see how those goals can be achieved.
2. We Provide & Acquire Pre-Vetted Income Properties
Using a proprietary algorithm, HomeUnion examines millions of data points to determine which neighborhoods and properties present the right level of risk versus reward. Furthermore, all of the properties we share with our investors have been vetted by one of our local real estate professionals to ensure they meet our high standards for income properties.
We’ll then present the investor with properties, and after they have decided which properties they would like to put an offer on, we’ll take care of the entire process from start to finish. This includes all the paperwork, financing options, inspections, and everything else in between to acquire the properties.
3. We Fully Manage The Asset
After the properties close, we’ll oversee any rehab and find quality tenants. We’ll fully manage the properties, including handling rent collection, and taking care of any maintenance or repairs. This means our investors can sit back and watch their assets grow while HomeUnion does all of the hard work for them.
View Income Properties
Investing in real estate can actually be an easy process, and HomeUnion has created a means for you to avoid the common mistakes many investors face. To see some examples of our pre-vetted properties, sign up for a free account with HomeUnion.