Owning a rental property is a great way to develop your net worth and earn some extra income. It comes with a lot of responsibility and can be intimidating especially if it is your first time owning
6 Secrets To Avoid Losing Money In Real Estate
Dated: December 28 2018
Are you in doubt to invest in real estate? Do you believe that the entire process is predicated on luck and chance? Do you blame the market or the real estate industry when your investments fail?
Many people lost money in investing and it's easy to sympathize with them but here's how you can do better and avoid losing money when investing in real estate.
Avoid negative cash flow
The market is unpredictable and nobody knows what tomorrow can bring. Avoid buying a property for the purpose of selling it later at a higher price. Instead, buy a property that generates the property's equal cost or more each month. Avoid losing money when selling in unfavorable conditions or even lose the asset to foreclosure.
By doing this, you are protected from the market dips or stalling home prices. It is important to ensure that you have a positive cash flow that will give you more power when you exit the deal back into your hands.
Keep some cash
It is important to always keep some cash with you so you can be ready when an unexpected happens. Owning a real estate is a responsibility and definitely is not a walk in the park. Having a sufficient amount of cash is crucial to your success especially when repairs, evictions or whatever is sometimes inevitable.
Be wise when to buy
It may be tempting to buy when everyone else does but understand that it may be a false sense of security. Know that sometimes, best deals are available when no one else is buying. Also, make decisions wisely by considering your cash flow, reserves, return on investments and ultimately your long-term plan before making any decision.
Be mindful of the location
This is vital to your investment. There are homes in undesirable locations that look good on paper but definitely not a good buy. Buy on locations where people want to live or you'll be forced to rent it to undesirable tenants with lower credit scores, bad rental histories or with unreliable income streams.
Be mindful of the repairs and maintenance
When you buy, be mindful of what the repairs actually cost. Never assume and make sure you have enough to make that necessary repair. Also, consider the maintenance and other fees that you may constantly need from time to time.
Get some help from a professional
Educating yourself is essential when making any decision regarding your investment. You will also need the expertise of a trusted real estate agent as they know the market status and they can help you find not just a good house but a good house that matches your needs too.
If you are looking for a house to buy around Alaska, call us 907-720-4663 or (907) 570-6757. You can also visit our site to get a free market report.
Vanna has called Alaska home for the past 15 years. As a mother, real estate investor and previous business owner, Vanna brings many different perspectives when working for her clients. She has been a....
Latest Blog Posts
Here's Alaska real estate market update for September 26th - October 2nd, 2020.On the top of our list is the Anchorage market. During this week, 403 are currently active listings where 62 of which
On your real estate journey, you will hear a lot about the property deed and title. They are both important in owning real estate so it is essential to know the differences between them.A title is a
Here's Alaska real estate market update for August 29th - September 4th, 2020.On the top of our list is the Anchorage market. During this week, 416 are currently active listings where 78 of which