Avoid 11 Common Mistakes Made by Novice Investors and Ensure High Rates of Return!
Real estate investment has provided many investors with positive cash flow, tax benefits and satisfaction of making an impact in others lives. However like any investment, real estate has intricate nuances and market trends that when ignored can cause an investor tremendous heart ache.
Unbelievably many first time investors are willing to part with their hard earned cash without taking the time to study their investment. They rely on traditional trends and gut feelings. Before you risk your investment take the time to learn all you can about your market. By aligning yourself with the right professional you can avoid these 11 common mistakes and you'll ensure an excellent return on your investment.
- Failure to Determine Your Time Need - Cash flow, capital appreciation, tax benefits, loss of management, equity paydown and pride of ownership are just some of the things that need to be addressed before you make that investment. A service minded real estate professional can be a tremendous asset by taking the time to evaluate your needs and making sure you've got all your bases covered.
- Not Checking out the Seller or Sellers Agents Numbers - Claims of extremely high rates of return run rampant in real estate investment. Don't get caught up in the excitement - check everything: rents, payment history, taxes, expenses, deposits, future modifications... everything. Make sure you have the right agent...it's like having a good insurance policy against overlooking all the seemingly insignificant but very important details.
- Forgetting You Are Buying a Business - Owning investment property carries with it great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property, time management all need careful consideration. Remember this is not a 'hands off' business.
- Avoid Negative Cash Flow - Property that eats cash every month can drain your working capital. This can create stress, frustration and become quite painful. Predicting constant appreciation is extremely difficult if not impossible for the unseasoned investor. A strain on your cash flow may cause you to sell the investment before the benefits of ownership are ever realized.
- Failure to do a Thorough Inspection - Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or reoccurring problems. Don't overlook anything! A value driven real estate professional will help you find the right inspector and can help you avoid costly mistakes. When investing your hard earned money be sure and use sound business judgment!
- Failing to Have Adequate Insurance - Investment property brings liability. Tenants, cars, parking lots, cleaning facilities, property liability - the list is quite extensive. Adequate insurance coverage is an absolute must! Be sure to consult with an insurance professional and protect your hard earned assets.
- Inspect, Approve, and Confirm All Documents - The list of documents that need to be proofed can be overwhelming to the first time investor. Building permits, zoning laws, rental and lease applications, health licenses, laundry leases, underlying loan documents, CC&R's, by-laws, title policies, mineral leases, inspection reports, purchase contracts, insurance.. don't attempt to do it alone. The right professional can remove most of the stress and bring the transaction to a conclusion smoothly.
- Get a Bill of Sale For All Property Involved - Many types of personal property (appliances, furniture, fixtures, etc.) can be involved in an investment sale. Be very detailed...know who owns what!
- Charge Fair Rents - Vacancies, turnovers and lease terminators are your biggest expense. Charge fair rents, treat your tenants with respect and respond as quickly as possible to their needs. It's a lot less costly in the long run to take care of the little problems before they become big problems. Vacant property is your Achilles heel.
- Select Qualified, Good Tenants From the Start - Take the time to check references. Previous landlords, employers, financial references, credit, judgments are all vitally important. If there are any questions do a thorough investigation. Drive by their previous residence. A little work up front can save tremendous problems later on down the line.
- Make Sure You Get Estoppel Letters - Get letters from tenants confirming the status of tenancy. Make sure their version of the rental or lease agreement corresponds with the sellers interpretation.
Education is the key to buying real estate. That is what I will do--give you the details of the market and its properties. When you buy, you will be making an educated decision. I would welcome the opportunity represent you in your real estate needs. I can do the job for you.
There is much more to my business than just being a middleman in a sales transaction. I welcome the opportunity to explain my personal service policy and illustrate a model marketing plan which I have developed for our area.
Please examine my professional profile and my overall presentation. Mine are the services of a professional real estate agent. I would like to work for you.
RICHARD'S EXPERIENCE
- Over 22 years of Marketing/Sales
- Over 13 years of Marketing Selling in Destin
EDUCATION
- Primary Concentration: Sales/Marketing
- Ohio University, Athens, Ohio,
- New York University, New York City, N. Y.
- Dale Carnegie, New York City, N.Y.
- Bert Rogers Real Estate Institute,Fort Walton Beach, FL
- Center Moriches H.S., Center Moriches, N.Y.
PERSONAL BACKGROUND
- Wife, Melanie
- Children, Shannyn 19, Richie 11, Patrick 10
- Living in Destin 13 years
INTERESTS
Photography, Sailing, Camping, Tennis, Bicycle & Horseback Riding, Gardening & Coaching Soccer.
ASSOCIATIONS
- Member of the Church of the Resurrection, Destin FL.
- Member of Emerald Coast Board of Realtors, Fort Walton Beach FL.
- Member of National & Florida Association of REALTORS
- Multi Million Dollar Producer
- Recipient of Executive Club Award
- Recipient of President's Club Award
- Recipient of 100% Club Award
- Top Listing Associate
I sincerely hope these tips and ideas are of value to you. If there is any way I can be of service, please contact my office... I would consider it a privilege to be of service to you! If you would like a FREE consultation, call my office at 850-837-8880 or Toll Free at 800-775-5914.
LET ME PUT MY EXPERIENCE TO WORK FOR YOU.
Sincerely,
Richard Eimers
The Eimers Group LLC
REALTOR
The Destin Commons
4300 Legendary Drive
Suite 270
Destin, Florida 32541
