When it comes to real estate investing, the object isn’t to obtain funding as quickly as possible and then throw money at whatever opportunity comes your way. While most are already aware of this, even the best of us can get duped. The main stumbling blocks lie in not knowing what makes a good investment and which details merit the most attention.
In fact, your investing success depends on finding deals that are right for you, specifically, and then hiring a team to execute them. As what’s popular in investing may not (necessarily) net you money, de-programming yourself of the “whatever’s trending” mentality becomes critical. Below, we cool down the tendency toward emotional investing and help you avoid getting burned.
5 Ways to Avoid Getting Burned in Real Estate
As anything else in life, your investing success depends largely on performing your due diligence. Here are some tips to get started:
Get legal advice
Whether buying or selling a property, legal counsel allows you to avoid some common problems. For example, you wouldn’t want to pay a brokerage commission for a sale that never happened, right? Believe it or not, these instances can occur. An attorney counters bad deals by reviewing any proposed brokerage agreement(s) beforehand, thus ensuring that you stay protected.
Check the Title of the Property
Unfortunately, checking the title of your potential investment for the seller’s name is a form of due diligence that often times goes overlooked. The reason it’s important is because if the title doesn’t reflect the actual seller’s name (which can happen if the home has been inherited), it will need to be transferred over before you can buy. Verifying the title from the start will allow you to avoid unnecessary delays.
Making Sure Your Investment Property is Insured
All home insurance policies aren’t created equal. So make sure yours applies to landlords because when you own a rental, a traditional homeowner’s policy won’t suffice.
Obtaining Proper Permits/ Performing Inspections
No one wants their tenants to have an angle on which to sue them! Therefore, obtaining proper permits and performing the required inspections— during the rehab stage of the process— is a must. Doing so ensures that the property is up to standards at the time of tenant move-in.
Wait, Who’s Handling the Property Management?
Savvy investors know that after their investment home purchase closes, the real work has just begun. A professional property manager serves as your eyes and ears, relieving you of the burdens that come with being a landlord. They ensure that rent gets paid on time and tenant needs are addressed, among many other things.
HomeUnion Does all the Above
When it comes to handling the details mentioned — whether it’s obtaining permits, performing property inspections, or anything else— HomeUnion does it all. In fact, our comprehensive approach serves as excellent burn repellant. Put HomeUnion’s expertise to the test by calling our Solution Managers at 888-276-0232 today or by scheduling a consultation.