Over the years I’ve learned a thing or two about what one should and shouldn’t do as a real estate investor. I’ve noticed that a common mistake many people make is purchasing investment real estate on a hunch or a gut feeling.
While it is important to have instincts, you have to understand that they are the products of experience, not a right of birth. This gets back to the myths. People are not born knowing this stuff. I believe it is impossible for a person who has never done a single investment deal to have an instinctive knowledge that one deal will be better than another. It’s not that simple. In fact, that’s the kind of naive thinking that gets investors off to the wrong start.
Save your gut instincts for twenty years down he road. Starting off on the right foot involves doing one thing really well: evaluating your market and submarket. You must get to know your target area and become an expert in it. Not for the sake of merely being an expert, but for the ultimate purpose of finding a great property investment that is viable and profitable for the long term.
That’s what we’re shooting for here. If you can accomplish that, the rest becomes easy. And that goes for finding and keeping residents, which directly impacts your cash flow and profitability. To learn more about the do’s and don’ts of real estate investing, click here.