Making mistakes investing in Real Estate in Omaha, Council Bluffs and the metro area is how we learn. Making mistakes is what helps us grow. Every great investor has made a mistake or two or three along the way. It is nothing to be embarrassed about or try to cover up. It is a part of the business, and it happens to everyone. Always fail forward and look at it as a learning experience. Learn from it and move on. Below, we offer up some of the most common mistakes we see from new and even experienced real estate investors in Omaha and Council Bluffs, and what you can do to avoid them.
Mistake #1: Paying Too Much for a Property
Nothing ruins the excitement of buying an investment property in Omaha or Council Bluffs faster than a case of buyer’s remorse. That moment when you realize you have paid way too much for the property and likely won’t generate much of a profit on the home when you resell or try to rent. Before making a purchase, real estate investors should carefully run all of the numbers.
- Factor in financing costs
- Repair costs
- Holding costs
- Potential resale value
- Average rents in the area
- Listing fees
- Agent fees
- Tax and insurance liabilities
While you don’t want to hesitate when a great property hits the market, you also will not want to be too impulsive, buying something that isn’t right for you. Running the numbers with a professional beforehand can save you a lot of time, stress, and money. You will pass on a lot of deals because of the numbers. Right now people like to overpay for properties. Can’t say this enough know your numbers. Working with Harter Investments can ensure you find the best properties in Omaha, Council Bluffs and the metro area at prices that will help you build your portfolio. You won’t have to worry about any surprises or red tape.
Mistake #2: Not Accurately Estimating Repairs
When buying investment properties in Omaha or Council Bluffs, you’ll often find that many are older and in need of some work. Before buying, you’ll want to estimate your repair costs, in alignment with your goals for the house. Are you flipping the property or looking for tenants to move in? Either way, you will want to make some repairs, which should be accounted for before buying. The type of repairs you will want to budget for will depend on what your exit strategy is or what you want to do with the house after repairs. Repair costs can be high, and add up fast. In many cases, it pays to do the repairs yourself as long as you know what you’re doing. Be sure to pad your repair estimate a bit too as repair costs typically tend to be more than you may think. Usually the older the house the more surprises. Don’t get stuck in over your head. Harter Investments can help you in estimating the repairs on a property before you make the purchase.
Mistake #3: Not Doing Their Homework
While getting into real estate in Omaha or Council Bluffs can be very exciting, it also requires some research. As a real estate agent in Omaha and Council Bluffs, a local direct cash home buyer in Omaha and Council Bluffs, at Harter Investments, we can help you get all the facts on a property, but there is often more to learn. Make it a point to learn about the community, schools, retail stores, commute times, HOA fees, or anything else that will potentially impact someone living in the home. Remember that some properties look good on paper, but there can be more to the story behind the scenes. At Harter Investments, we make it a point to learn all we can regarding the details of a property before selling to another investor. When making such a large and important purchase, be sure to make yourself as informed as possible.
Mistake #4: Not Being Able to Find Tenants or a Buyer
Almost as bad as overpaying for a property, is buying a property in Omaha or Council Bluffs and having it sit there empty generating zero income. All the time you’re paying the bills, real estate taxes, mortgage, insurance costs and maintenance while the property doesn’t provide you with any income whatsoever. Before buying an investment property in Omaha or Council Bluffs, make sure that it is in demand. Whether flipping or renting, you’ll need to find buyers or tenants to make the deal worth your time. Do your research and look at comparable properties in the same neighborhood if possible for rent or for sale in your area depending on your exit strategy. The big question is to look at the numbers objectively and honestly and they will tell you if you are able to make a profit when all is said and done. When working with Harter Investments, we’ll help you with the data you need so you can make the best possible decision for a profitable investment.
Mistake #5: Trying to do it All on Their Own
Any successful real estate investor in Omaha or Council Bluffs knows that they can’t rehab a property without an incredible team by their side. This includes real estate agents, home buyers, real estate wholesalers, a title company, a legal team, construction crews, and more. Trying to do it all on your own will end up wasting your time and costing you a lot of money. While doing some things on your own, a savvy investor knows when to call in for backup.
Working With Harter Investments
At Harter Investments, we serve both home buyers and home sellers throughout the Omaha, Council Bluffs and metro area. While helping property owners find solutions for difficult situations, we also help investors by sourcing properties. Whether you have never purchased a property before or if you are a seasoned investor, our team is here for you. We want to help you avoid many of the mistakes investors often make while helping you to find the best properties for sale in Omaha or Council Bluffs. Give us a call today to learn more about us and what we can offer you! 402-939-6556 or visit https://www.harterinvestments.com/