5 Errors in Buying Real Estate with no or Little Money Down

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5 Errors in Buying Real Estate with no or Little
Money Down
So you are interested in Investing in Real
Estate. Problem is, you dont have the money. You
probably have watched videos, analyzed
infographics, and read articles and blogs if it
really is possible to invest with no money down.
Youre on a good start.
You know what? This doc is perfect for you
because it is part of our series of Guiding
Newbie Real Estate Investor in San Antonio. We
are going to get REAL!! In this doc, we wont
teach you how to invest with no or little money
down, well expose the common mistakes in Buying
Real Estate in San Antonio with no or little
Money Down.
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5 Errors in Buying Real Estate with no or Little
Money Down
Incoming and Outgoing This is the most typical
mistake most newbies are committing. We call it
the inexperienced perspective. Cause of mistake
is miscalculation. One example is getting a
mortgage more than your income. If you cant pay
15k of mortgage every month, you shouldnt grab
it.
Remember, its not just about Equity or the digit
that goes after the equal sign. Its also about
the ability to pay the monthly payments. Expenses
are presented after us, displayed or concealed,
they are there. You have to be able to pay that.
If not, thats where you make a mistake. Incoming
should be greater than outgoing, NOT the other
way around.
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5 Errors in Buying Real Estate with no or Little
Money Down
Repairs/In need of fixing Home Repair is a huge
factor why a house is not being homed by a buyer
or tenant. At least not yet. The condition of the
property may be tolerated by the current occupant
but may be the factor why itd be rejected by
interested buyers/renters. Yes, some minimum
repairs could be shouldered by the tenant, but
you are responsible to repair the property too.
Especially when tenants move out. Helpful Tip
Besides the repairs, the appeal of the house
needs to be fixed. Keep in mind, beauty attracts
the eyes. Decorate the property a bit to make
interested buyers fall in love with your home.
Again, the sooner the property gets sold/ rented,
the lesser the expenses.
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5 Errors in Buying Real Estate with no or Little
Money Down
Vacancy Every day that your house for sale is
vacant, you, as an Investor, are not earning. No
incoming money equals to no comeback of
investment. Vacancy costs. Advertising isnt
free. To be able to dispose your sale fast, you
need to hire professionals. Sometimes, not
spending on hiring a professional costs more
because it delays the sale.
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5 Errors in Buying Real Estate with no or Little
Money Down
Lack of pressure Lack of pressure to get things
closed or done is simply wasting your time and
money. Personal reasons like family events delay
your work. Other reasons of delay is too much
thinking to do something but not really doing it.
or planning who will do what but not executing
it. Always, always make your effective date clear
and fixed.
Helpful Tip Plan your week right both
professional and personal. Its part of your
humanity to be with your love ones but its also
your responsibility to make profit out of your
investment as soon as possible. Being on time
means being able to arrange and fix your calendar
effectively.
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5 Errors in Buying Real Estate with no or Little
Money Down
Misreading Reality If you think the above
equation is the formula to earn in Real Estate
Investing, then youre wrong simply because the
formula above is wrong. It hides other expenses
you are going to deal with like maintenance,
advertising, staging, closing costs, commissions,
etc. Reality is, these are expensive.
Helpful Tip Make sure you have a copy of every
penny you spend. Create a spreadsheet and see how
really did you spend the entire project from
buying, repairing, selling, and being sold. Take
notes of your mistakes and wrong habits and make
sure you dont do it again.
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Thank You