5 common mistakes when investing in real estate 

1. Not daring to invest

Several obstacles may seem to be so overwhelming to investors, that they often end up not daring to invest. It can come from a lack of knowledge or even a lack of confidence leading to a fear of losing money and wasting time. However, if you don't try, you can't win; not trying then means missing opportunity to success and make profit.

2. Not having a pre-established plan

Because real estate investment is a long-term investment, the establishment of clear goals is a necessity in order to stay focused on these goals. Preparing and implementing a plan with goals foreseeing the amount to invest, the time to invest and the desired profits thus makes it possible first of all to be motivated and therefore to start (see point 1), but also to consider and anticipate the advantages and disadvantages of the investment, as well as the strategies to be adopted. Preparing also helps to structure your ideas and analyze the type of investment that best suits your personality and your goals (see article "the two easiest ways to invest in real estate").

3. Trying to do everything on your own

Real estate investment should always be carried out with a team involving people whose different skills and knowledge will lead to a better investment.  An excellent real estate agent will be able to find a great property at a fair price. An excellent mortgage broker can ensure that financing at a good rate is obtained. An excellent real estate investment fund such as BaltimoRealEstate LLC will take care of everything from finding a property to buy, to financing, renovating, managing and renting the property, to reselling if necessary.

Even if investing is one of the simplest and safest investment, it may seem simpler than it actually is. Indeed, defining the amount to invest, obtaining a mortgage loan, buying a property, renovating, finding a tenant, managing the property, meeting all the obligations of an owner... requires in-depth knowledge so that costs do not increase at a high speed, taking the investor away from his profit objectives.

4. Overspending

When an investor decides to invest in real estate, the amount he decides to invest should always be determined as the final value of his investment, i.e. he should foresee the costs associated with the investment such as the payment of professional services, closing fees, renovation costs etc. It is very common for an investor to spend too much on renovations, especially when there was no pre-established plan or budget (see point 2). Indeed, an investor may tend to want to improve his property too much, without first analyzing the need of such renovation compared to their costs.

5. Forgetting to analyze the real estate market

It is important to know when an offer is a great opportunity to make a profit or, on the contrary, to realize that the price of a property is too high. To do so, an investor must always analyze the real estate market of the cities he is targeting.

It is often difficult to assess when patience or intervention is required. An investor must either be patient and deepen his knowledge, or rely on the services of a real estate investment fund such as BaltimoRealEstate (see point 3).

In conclusion, a real estate investment is never (or rarely) based on luck; it is a decision that requires a thorough analysis. A real estate investment specialist thus offers the security of a more secure investment.