4 Real Estate Investing Mistakes
Posted by Grant Cardone
There’s a powerful opportunity waiting for you that’s a proven formula for creating long-term wealth. Focus on becoming a real estate investor. You can create phenomenal wealth for you and your family. Here’s why you should invest in apartments.
Focus on becoming a real estate investor. You can create phenomenal wealth for you and your family. The key is to invest in apartment buildings. These have unparalleled value over other real estate options.
When it comes to real estate investing, if you can do it yourself – go for it. If you have the guts, information, and courage to get these deals – grab them. Now, if you’re willing to put together the right team to make it happen, you’ve gotta think about who will do what and how you’re going to do it.
Now, be careful because if you decide to do this alone, you may not have the foresight to make all the right decisions. If you can avoid making some of the mistakes on your own, you’ll be able to go into these deals and close them with confidence.
THaving a partner who has knowledge and experience can help you with this journey. Be aware, make sure they’re on the same page as you. You’re buying the deals, you’re doing the work – you need people who will help you, not hold you back. You are the decision maker.
This is a very common approach, to do it with yourself, a manager and a company. Most of the time when I see people investing alone, it’s usually in smaller deals. Again, do NOT do small deals.
While this may seem challenging, it’s worth it. Even if you choose to do things by yourself, it’s going to be hard to find an “easy” deal. You want deals that are “high in-demand” but that means you have to be competitive if there’s many other buyers. To get around that – you simply pay more than all the others. So, look for apartments that have high demand.
Keep in mind: If the deal is easy to buy, it’s probably not good. There’s a good chance there’s a problem with it. The more interesting the deal is, the more valuable it will be.
Once you’ve got your deal, you’re gonna want to further analyze that property. Visit the property often to check it out and get a good sense of who’s there. Talk to the tenants and figure out what the property might need and then decide the different ways on how you’re going to make it even better. Estimate the number of repairs you might need to do and how much it’ll cost.
At the end of the day, your goal is to negotiate a fair price on a good property that presents short and long term value.
Reminder: If you do choose to DIY, make sure to only look at apartments with at least 16 units or an average of 32.
Apartments will appreciate over time and you’ll make your investment back, and then some and you’ll pay down the debt, too.
If you would like to invest with Cardone Capital, schedule a call below.
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