Are you looking to invest in property in North Carolina?
When done right, investing in property can set you and your family up for the future. It provides tangible assets to hold onto, and a passive income to top up what you already earn. But being successful in property investment requires knowing what can hinder your progress.
That's where we come in! Keep reading for these 6 mistakes with property investments to avoid today.
1. Not Shopping Around For Finance
How you plan to finance your property investment strategy will affect your mortgage. The difference between a 2% loan and a 4% could be thousands of dollars out of your pocket each month.
This is why you need to shop around and compare offers from different reputable lenders. It's a good idea to get your lawyer to go over and details with you.
2. Not Factoring in Vacancy
You'll have gone through and worked out how much you'll pay and how much rent you'll charge for a property. So long as you have a paying tenant, you could make a 50% each month vs expenses.
What if you don't get a tenant immediately? What if you get a tenant who doesn't pay and you need to go through eviction? What happens if the market slows and it sits empty?
This is "vacancy" and something you need to factor into valuations for an investment to be successful. You need to do your research into property in Greensboro and Triad to work out what this could end up costing you.
3. Rushing Into a Deal
When investing in property, the first deal is always exciting. It's setting you up for a future of passive income, so long as the deal is a good one. You'll find no end of deals in the real estate market but the worthwhile ones are like gold dust.
You'll need to do your due diligence to find and close them. Be patient and never feel pressured to buy, a bad deal will be hard to shift and you could lose money instead of making it.
4. Not Making the Most of Value Boosters
So, let's say you've got a 4 bedroom in Greensboro for $300,000. If it had a sunroom or an attached garage with an extra bedroom on top, you could see a boost of $25,000+ if the market is right.
Look for low-cost, high-return modifications in the types of property available. Make sure you're working with a good contractor with competitive conversion costs. Do this, and you could boost your income even higher.
5. Not Picking Experienced Investors
You should also partner with an experienced investor local to Greensboro/Triad. It's one of the best property investment tips, especially for first-timers.
They'll know the process, the local and North Carolina regulations, and have a rough idea of costs. They'll have a wealth of knowledge to draw on, well worth the half and half split for that first time.
6. Not Understanding It's a Team Effort
If you want to be successful you need a team of great people to help you find and close the best deals. Your team should include:
- Real estate agent
- Mortgage lender/broker
This will give you access to resources like property managers or council representatives. Partner with the best people and remember it's going to be a team effort.
Don't Let Mistakes With Property Investments Trap You
So, there you have it! Now you know these top mistakes with property investments, you know what to avoid.
When investing in Greensboro/Triad property, make sure you're doing your research. Put together a solid investment team and know your options. There's no rush either, the best deals come to those who wait.
If you're looking for a great property manager to add to your team, contact us today. At Home River Group Triad, we've got the local knowledge and experience to suit all your property management needs.