When first starting out with the real estate investing game, new investors tend to make the same mistakes. Take a look at some of the most common rookie mistakes investors make and how you can avoid committing them yourself.
Mistake #1: Guessing on the numbers you’re working with
Staying on top of the cold numbers sounds like common sense, but costs in real estate investment can fluctuate pretty often. Making sure you’re accounting for all the costs associated with Portland home building and property management may be a pain at times, but it’s crucial for ensuring you’re staying within budget. Every investor knows their yield percentage, sure, but what about costs stemming from tenant vacancies and repairs? Other fees, including HOA and insurance, can add up month after month. If there are costs you’re unclear about, speak with your real estate investment group, contractor, or whomever you’re leaning on for support. Ensuring all costs are calculated correctly and budgeted for will help protect you from unwanted surprises down the road.
Mistake #2: Doing real estate investing on your own
Many first-time real estate investors think they can jump into the Portland real estate investing game by themselves and find great success. Unfortunately, this is usually a huge mistake. Many rookie investors don’t know what they don’t know, and tend to make more errors without expert guidance. There are a range of benefits that come from working with housing market experts, typically those you’d find in a real estate development group. These experienced investors can serve as great resources for investing advice and networking opportunities that can get you an “in” with top developers, contractors, lenders and property managers.
In addition, working with the right Portland real estate investment group can help you find tenants, and handle the daily tasks associated with property management, such as collecting rent and performing routine maintenance and inspections.
Mistake #3: Failing to establish long-term goals
It can be easy for first-time investors to get caught up in the rat-race of chasing the next hot property they see on the horizon. Many times, these great opportunities come with higher risk that new investors aren’t prepared for. Ensuring that every decision you make aligns with the long-term goals and overall plan you have in place helps to minimize risk and keep you on track for success. Adhering to the investment goals you’ve predetermined will also help in keeping you focused on those ideal properties and better prepared for dealing with roadblocks that come your way.
Portland investors for property development
Portland Development Group offers a wide array of options for real estate investors interested in jumping into the Portland housing market. Our history of success is matched by our experienced teams who know how to identify opportunities and act quickly. Contact us today to learn more about our investment process and how we can work together to achieve success in this highly sought-after market.