Do you want to invest in Detroit real estate? If so, here are 5 mistakes real estate investors make and what you can do to avoid them! As always, reach out to us if you have any questions!
The truth is, anyone can get started with real estate investment. However, there is often a learning curve, which is why we are discussing the mistakes real estate investors make, especially when just starting out. With a little planning and forethought, you will be able to ensure your first investment is a smart one. We want to help you with your journey into Detroit real estate investment, so keep reading to learn what not to do when buying investment real estate in Detroit!
They Wait Too Long
When we talk to other real estate investors in Detroit, the number one regret we hear is that they wish they started sooner. The right property, combined with the right strategy can generate real wealth for a property investor. Hesitating to buy can cost you thousands, plus it will keep you from reaching your real estate goals as quickly as you could have otherwise. While you shouldn’t just go out and buy the first property you find, you should be ready to go when the right deal comes along. When you know that real estate investment is something you would like to pursue, there is nothing holding you back but you!
They Buy The Wrong Property
Not every property out there will be a good investment. It takes extensive analysis to ensure you are getting a good deal on investment real estate in Detroit, purchasing something that will be an asset instead of a regret. For example, some people will buy an investment property with the intent to fix and flip it. However, once they begin diving into the needed repairs, they realize it is going to end up costing much more than they had planned. By the time all of the repairs are made, they actually end up losing money, not to mention the time wasted on the project. At Freedom Acquisition Management LLC, we will help you to avoid buying the wrong property. We will help you understand your potential costs as well as what you can expect regarding returns.
They Aren’t Able To Flip or Rent
When you buy the wrong property, you may not be able to flip it or rent it as you had imagined. You’ll need to do extensive analysis on not just the property itself, but the location and strength of the market too. Will there be a demand for your property? The answer should be a big fat YES if you want to profit from your investment property in Detroit. Getting stuck with a house you aren’t able to flip or rent can end up costing you a fortune. In some cases, if you have a mortgage on the property you aren’t able to pay, you will run the risk of having the bank foreclose on you. This could spell trouble if you plan on applying for financing in the near future. As any investor will tell you, the longer you own a vacant property, the more it is costing you. Before buying an investment property in Detroit, make sure you will be able to flip or rent it as you plan.
They Pay Too Much
One of the worst feelings is realizing you paid too much for your investment property in Detroit. Many first-time investors will overlook things they shouldn’t, finding themselves with a property that ultimately drains their wallet. When you work with the team at Freedom Acquisition Management LLC, you can ensure that a full property analysis has been done. You will know what, if anything, needs to be repaired, what you can expect to make from the property, as well as any other pertaining details that will be important in your decision whether or not to buy. You will never have to worry about overpaying for your real estate investment in Detroit.
They Work With The Wrong People
When investing in Detroit real estate, you’ll want to make sure you are working with the right people. It can be intimidating when looking for your first deal, having to do all of the analysis on your own, while competing with other buyers. Even something small that is overlooked during the purchase, can have huge consequences after the deal is done. Working with a professional property buyer will help you to ensure proper analysis has been completed and that you get a great deal on your investment property in Detroit!
Now is a great time to purchase an investment property in Detroit! With a rapidly changing inventory, we have new investment opportunities available all of the time. Give us a call to find out what we have available today!