How to [spin]Eliminate|Reduce[/spin] Risk in Real Estate Investment!

Real estate investment has provided [spin]many|several|various|loads of|countless|numerous[/spin] investors with positive cash flow, tax benefits and the satisfaction of making an [spin]impact|impression|effect[/spin] in others lives. However like any investment, real estate has [spin]intricate|complicated|complex|difficult|elaborate[/spin] nuances and market trends that when ignored can cause an investor [spin]tremendous|great|incredible|enormous|immense|massive|humungous[/spin] [spin]heartache|distress|misery|despair|sorrow[/spin].
Unbelievably, many first-time investors are [spin]willing|eager[/spin] to part with their hard-earned cash without taking the time to [spin]study|revise|examine|investigate|review[/spin] their investment. They rely on [spin]traditional|usual|conventional[/spin] 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 [spin]avoid|stay away from[/spin] these 12 common mistakes and you'll ensure an [spin]excellent|outstanding|exceptional|admirable|superb|tremendous[/spin] return on your investment.
1. Failure to Determine Your Time Need- Cash flow, capital appreciation, tax benefits, loss of management, equity pay-down 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 [spin]tremendous|marvelous|wonderful|great|fabulous|fantastic|remarkable|terrific|magnificent|sensational[/spin] asset by taking the time to [spin]evaluate|calculate[/spin] your needs and making sure you've got all your bases covered.
2. Not Checking out the Seller or Seller's Agent's Numbers- Claims of [spin]extremely|awfully|really|exceptionally|exceedingly[/spin] 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 [spin]important|significant|vital|central|essential|critical|crucial[/spin] details.
3. Forgetting You're Buying a Business- Owning investment property carries great potential for creating wealth and... some potentially difficult decisions. Evictions, re-investment into the property and time management all [spin]need|require[/spin] careful consideration. Remember this is not a "hands-off' business.
4. Avoid Negative Cash Flow- Property that eats cash every month can drain your working capital. This creates stress, frustration and can become [spin]quite|rather|relatively|reasonably|very|utterly|extremely[/spin] painful. Predicting constant appreciation is [spin]extremely|tremendously|exceptionally|exceedingly|particularly|awfully[/spin] 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.
5. Failure to do a [spin]Thorough|Complete|Total[/spin] Inspection- Look under every rock! Hire a professional inspector. Ask the tenants about pest problems, structural damage or [spin]recurring|returning|persistent[/spin] problems. Don't [spin]overlook|neglect|miss|oversee[/spin] anything! A value-driven real estate professional will help you [spin]find|locate[/spin] the right inspector and can help you avoid [spin]costly|expensive|pricey[/spin] mistakes. When investing your hard-earned money, be [spin]sure|certain|positive|confident[/spin] and use sound business judgment!
6. Be Columbo- Check out all your costs and expenses before you sign: utilities, taxes, insurance, maintenance and homeowner dues, if applicable. Make sure all utilities are on (gas, electricity, and water), so you can [spin]inspect|examine|check|study[/spin] everything in working order. Ask lots of questions and be [spin]very|extremely|incredibly|especially|extraordinarily[/spin] detail conscious.
7. Do a Final Walk-Through- Visit the property after all the furnishings have been moved out to be sure there are no surprises. Be absolutely positive the property was left exactly as you had agreed upon in the contract. Many times, things are unintentionally overlooked that could have been spotted in a final walk- through.

8. Plan For Flexibility- Closing dates are not written in stone. Allow for contingencies and have a back-up plan. If you or the sellers need a little [spin]more|extra|additional[/spin] time to conclude the final arrangements, don't let these delays [spin]upset|distress|displease[/spin] or [spin]frustrate|aggravate|irritate|annoy|bother|discourage[/spin] you. These types of circumstances are not [spin]uncommon|unusual|rare[/spin] in a real estate transaction.
9. If It's Not In Writing, It Doesn't Exist- All promises and discussions are to be in writing. Don't make any assumptions or believe any assurances. Even the [spin]best|finest|greatest[/spin] intentions can be misinterpreted. Have your real estate professional keep an ongoing log (in writing) of all discussions, and get the seller's written approval for all agreements.
10. Loyalty Breeds Loyalty- Be open, honest and up-front with your team. Hard feelings and disloyalty will cause headaches, delays or may even keep you from getting into the [spin]home|house[/spin] you worked so hard to [spin]locate|find[/spin]. Take the time to select the right team in the beginning and your first home purchase will be a [spin]simple|easy[/spin], easy and profitable experience you'll have fond memories of... for years to come.
My hope with this report has been to [spin]educate|teach|inform|alert|instruct[/spin] you and help you avoid the pitfalls [spin]many|numerous|countless[/spin] home buyers go through. I hope you found the ideas valuable and if there is ever any way I can be of service to you or anyone you care about, please contact my office. Your initial consultation is always completely free of charge and you're under no obligation of any kind. We'll sit down for 15-20 minutes... no high-pressure, just plain, honest talk about what it's going to take to achieve your personal goals. Go ahead, pick up the phone and give me a call. I'd love to hear from you!
Jutta "Utah" Burden
Keller Williams Realty