With all of the wonderful excitement that comes with being an investor in the real estate market, it is all too easy to overlook the basics. This mistake may prove to be quite costly in the future. Property investment requires several intricate factors that must not be disregarded.
The first thing you need to look for when evaluating a potential investment property is a clear title. Many times, when you purchase land as an investment property, you must deal with a private party or individual seller. Seldom will you be dealing with a real estate broker. It is critical that the property you are considering for purchase has no pending liens. This ensures that you will be able to sell the property at a later date without any complications.
Another thing you need to pay attention to when investing in land is financing. The economy today is rather tough. For this reason, several banks tend to see land investing as something passive and they tend to be quite meager when it comes to lending money for land. Not having the right amount of money to invest at the right time may mean missing out on an amazing deal. Take the time to research and learn about seller financing and the best way to negotiate to get the deal that you want.
Finally, one of the most important factors to becoming a successful investor in the real estate market is one that you have most likely heard time and time again and that is location, location, location. Often times, if the land is an undeveloped property, it is not likely to have a postal address on record unless it is in an established community.
You need to know the process for identifying property location correctly if you plan to include land investments in your real estate portfolio. In some cases, a good GPS device can be used to identify the coordinates. In addition, you can also use a plat mat, which is generally available from the local county office.
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Hi Sean,
Thanks for the great tips for assessing a potential investment property. This small checklist will definitely help me avoid some costly mistakes.
I’d love to have a huge real estate portfolio so I’m really going to enjoy reading your blog.
Looking for properties where there is a planned freeway extension or a shopping complex is always a way to pick up cheap land that has potential. Being market reading is something that few do..they wait till the bargain shows up before they try to organize finance…I have been guilty of this too. Just a question, what is a plat mat?
I think it will be a little time before I can think about any potential investment property but this information is great so I will bookmark this site for future reference.
Great advice about choosing property investment. Narrowing down the options and choosing wisely is extremely important and making a savvy investment is key. Sometimes advice from some Real Estate agents can be questionable and having an impartial set of guidelines to consider is gold!
Hi Sean,
Costly Property Investment Mistakes can be Avoid using a competent Lawyer and ensuring all council inspections etc. are carried out as required.
Costly Property Investment mistakes to avoid. A must read guide for all potential investors. So often we are ruled by our heart, not our head when it comes to buying Real Estate. Until you’re in the game a while, it would be very easy to overlook important details, so researching or finding a good mentor first is so important.
As Jody said, often people miss the boat because they don’t have the money when they need it. Being prepared is the key to property success.
Cath
I agree with Cathy. It is true that we often buy property under the influence of emotion and not practicality.
You even need to read the fine print in contracts in regards certain levy’s or taxes you may be subject to and are not aware of .
We need to avoid costly property investing mistakes and be investment savvy through education.
This blog is really providing great tips for property investment – not just a chat about hwo good an option property investment is – but tips that are an education. My note book spilleth over!
I have seen many friends buy into so-called investment properties without ever going into something like this article about Costly Property Investment Mistakes to Avoid.
Even if the economy wasn’t so tough this advice is fundamental
We almost made a costly property investment from a simple mistake and am thankful we discovered it before we did. It was the perfect piece of land for us to build our first house on – close to both places of employment, surrounded by other large properties and a park and in our price range.
The costly property investment mistake we avoided – it didn’t have access to it. That’s right – you would have to jump your vehicle over a 3 foot span to get to the land we were buying. Power and water – we’d have to create our own as the city wouldn’t be able to avoid that 3 foot barrier.
Costly property investment mistakes to avoid:
the promise of the seller and real estate agent who hasn’t done their due diligence.