• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

My blog

Just another WordPress site

  • Home
  • About
  • Contact
  • Blogging
  • Budgeting
  • Business
  • Finance Blog
  • Life
  • Save Money

Allen R Hartman Looks At The Prime Mistakes Made By First Time Real estate Investors

By Thomas on March 17, 2018

When it comes to real estate investing, it would be fair to say that every mistake you make is costly. It’s at this point that some investors really struggle to keep the faith, even when the best proposition might pop up on their doorstep.

Someone who has a proven track record of investments of this ilk, particularly in the Houston area, is Allen R Hartman. He has seen investors come and go in this region of Texas, and seen all of the mistakes from the outside. This is the reason today’s article has been put together, as we take a look at some of the prime mistakes that are made for first time real estate investors.

Location, location, location

It’s something of a cliche, but the term location, location, location really couldn’t be more accurate when it comes to investing. Unfortunately, many first-time investors get this completely wrong.

Some of them simply look at a photo of their favorite area and go from there, while others might choose the place in which they grew up. Suffice to say, both are major errors, and you should instead be following the money. When we talk about following the money, it’s all about analyzing what other rental properties are in the vicinity, and also of any laws which might impact your return.

Of course, if you have any familiarity with the area it’s going to be an aid, but don’t let this be the top thing which is driving you.

You overestimate how much income you will make

This is another exceptionally common mistake, particularly if you are dealing with a potentially lucractive area like Houston. Even though it might seem completely profitable on paper, it’s not until the money starts coming in that you can really be sure of your income.

This doesn’t just relate to how much rent you can charge tenants either. It also relates to the amount of time you have between tenancies, which so many new investors don’t account for and therefore lose money in. Just because a property is ready to be rented, it doesn’t mean to say that a tenant is going to move in on the exact same day. It could in fact take months, which obviously impacts your bottom line significantly.

The opposite problem: you underestimate costs

Following on from the above, let’s now turn to the opposite problem. We’re referring to the issue where you completely underestimate the amount of money that you’re going to spend on real estate.

In truth, this could be due to a whole host of reasons. For some people, it might be because they have not budgeted for as much money as they need on property repairs, before the building hits the market. For others, it might be because they’ve completely forgotten to include the likes of agent fees and insurance in their calculations. While this might seem a simple mistake, it’s unfortunately a very common one.

Tweet
Pin
Share
0 Shares

Primary Sidebar

About Us

I’m Thomas Stevens, a financial advisor who has a love for SEO. Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche! Read More…

Archives

  • November 2022
  • October 2022
  • September 2022
  • July 2022
  • June 2022
  • May 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • July 2021
  • June 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017

Popular Posts

Recent Posts

  • How To Earn Real Money Online By Playing Poker
  • 3 Tips To Help You Get Out Of Debt Faster
  • 3 Tips For Paying Off Debts Quickly
  • 3 Ways To Get The Help You Need While Also Saving Your Business Money
  • 4 Tips For Cutting Back Your Business Costs

Facebook

Be a Money Blogger

Facebook

Be a Money Blogger

Let’s Connect

  • Email
  • Facebook
  • RSS
  • Twitter

I’m Thomas Stevens, a financial advisor who has a love for SEO.

Anything numbers related excited me, so I started blogging about finances and budgeting. I also help others blog about finance – it’s always good to have a niche!

Copyright © 2023 · Smart Passive Income Pro on Genesis Framework · WordPress · Log in