Losing money is one of the biggest obstacles new investors face. No matter what you know or what you do, there is a chance that you can lose money. That is a given fact. The secret to losing the least amount of money possible is to know the areas you invest in like the back of your hand. You can’t know too much information about the neighborhoods where your investment properties are located.
There are three different types of neighborhoods you can invest in:
- Homeowner neighborhoods – The residents own the properties and take good care of the homes.
- Tenant neighborhoods – There is less pride of ownership because the residents are renting the properties.
- Mixture neighborhoods – Both owners and tenants live in properties.
Before you make an offer on a property, you must know the financial numbers and determine the value of the property after you do repairs. Ask these questions:
- What will the property rent for?
- What are you monthly costs?
- What are your holding costs (mortgage, water, electric, garbage, lawn care, pool maintenance, etc.)?
- What are the repair costs?
If you’d like to get more tips on how to become a better real estate investor visit www.larryharbolt.com to register and get my free phone script on how to negotiate with sellers over the phone.