Mistakes Made by First Time Investors

You’ve made the leap of faith and want to join millions in the journey to financial freedom by investing in real estate - what could go wrong? Like many, you might think that in this market buying a fixer-upper can’t go wrong, that you’ll always be able to sell it due to high demand and make a profit. Think twice! There are numerous reasons why this is not the case including some rookie mistakes made by first-time investors.

Self Made Real Estate Experts

You’ve read the books, watched the television shows, and even poured over Zillow for what seems like endless hours. You think you’re a professional and know all you need to succeed. What you’re forgetting is that every market in every community in the country is different. This means that the fixer-upper you buy in town A might sell, but if you were to buy a carbon copy of that same house in town B it might sit for months! Why is that? Every community has different income levels, motivation for buyers to move there, and other factors. Houses are not one size fits all communities. The best investment you can make when buying a fixer-upper is to take the time to speak with a local agent who knows the driving factors for the community you are looking to purchase in. It can save you a lot of time and stress in the long run.

Fancy Finishes - Dime Store Budget

The Pinterest phenomenon - getting expensive finishes for a home that will increase the overall price of the home and pushing that cost onto a potential buyer who might not be able to afford it. Remember to remodel for a potential buyer's budget - not yours! High-end remodels come with high stakes. If the buyer does not appreciate your high-end items they might not agree with the overall high-end price of the home.

Putting Off Easy Fixes

It’s all great and dandy to overall the entire home and gets the big items taken care of, but do not neglect the smaller items like updating fixtures such as doorknobs, light switch covers, and outlet covers. Buyers notice that! When the buyers see small things they often wonder what big things lie neglected underneath.

Working Against the Clock

Buying a flip and then setting an unrealistic goal of completion can be the detriment of your project. Rushing for work to be done can create work to be done half-heartedly and cause more problems down the road. Buyers and future home inspectors will notice any short fallings or rush jobs.

When it comes to investing in a home for “flipping” it, there is a right and a wrong way to do it. Do your research, keep costs low, have a realistic timeline, and always consult with a local expert on the market. If you are looking for a real estate agent in the Dallas-Fort Worth community, Anthoney Hanks with Beyond 404 Realty has years of insight and experience in purchasing homes to renovate them and resell. Located in Forney, Texas our real estate office can service your local needs and provide solid advice for our community. To contact us, please visit our website and call or email us.