People consider real estate as an easy goal, but investing in properties is not a cakewalk. Those who become successful in real estate business are experts in this domain with their hard-earned knowledge and in-depth skills in various aspects of real estate deals. It is seen that many people commit the same type of mistakes over and over again in order to fail in a real estate career.
In fact, it is primarily all about using common sense, along with developing a solid investment practice based on thorough research. In this article, we will discuss some key do’s and don’ts of real estate investment as advised by the real estate expert mentors to the real estate investors. In between, we will discuss some debt consolidation do’s and don’ts also, which is also a trending topic now.
Real Estate Investment Tips
1. Do a proper study of the field.
It is found that the mistakes are usually made by those who do it in a rush and don’t take enough time to learn the field before making a move. If you want to make real estate investment career, you need to prepare well by investing time into researching the local real estate scenario and the market conditions, which keep on changing.
Doing proper homework will help you to make well-informed decisions, which may not only protect you from making potential mistakes but also can save a lot of money and time by doing the right thing at the right time. In real estate investment, it is better to play safe than feeling sorry about a loss later.
2. Don’t buy real estate properties based on the future value
This is otherwise known as “pro forma analysis,” which is the practice of buying property based on what it could be at a future point. Don’t go this way. Many real estate buyers make this mistake, which never work that way as they expect. The sellers tend to use this point to neglect the current drawbacks and issues.
So, this is something one must be aware of in order to avoid any trap. Keep this golden rule in mind as never evaluate a property for anything other than its current value. You may push the future value to the back of your mind, and they do current-time calculations to negotiate.
Let’s have a quick overview of debt consolidation do’s and don’ts and then come back to further points.
Do’s and Don’ts of Debt Consolidation.
If you are into multiple debts, remember that debts can quickly pile up if you don’t manage them well. However, if you do some due diligence and understand how your debt management system works, you can avoid some serious trouble in the long run. Otherwise, failing to make debt repayments property or ending up in a troublesome debt situation may not only adversely affect your credit scores, but can even put into neck-deep trouble as by ending up in bankruptcy or so.
In general, we can see that the debt across the USA is largely mounting. The total household debts of US citizens exceeded about $13 trillion last year based on the Federal Reserve statistics. Most importantly, mortgages account for the most chunk of the outstanding debts, and then comes credit card, student loans, and auto loans. Here are some do’s and don’ts in debt consolidation from Libertylending.com for those who are in debt to follow.
Do shop for good rates.
Obtaining funds with the lowest interest is the key to succeed in debt consolidation, so look for the best rates. The interest rate of a fund advance largely depends on the individual credit score, where a higher score will win a better rate and vice versa. The rates may vary from provider to provider, so it is ideal for exploring multiple options and comparing the rates to identify the best possible deal.
Don’t apply for multiple loans.
Being in desperation to get funds and with the fear of rejection, people tend to make this mistake. However, it is seen that applying for more than one loan at a time may adversely affect your credit score. In fact, some companies now give you the opportunity to preview the rate without creating any impact on your credit score. Explore such opportunities and fully understand the loan terms before applying.
Do keep the credit cards open.
It may seem counterintuitive, but it is advisable to keep your credit card open even when you pay off the debts. The credit scores are determined based on the debt amount you may potentially use versus what you actually use. So, once if you keep the potential balance higher, the better your scores can be. However, this works only with the cards which have been used already. Keep this in mind.
Don’t try to accumulate more credit card debt.
When you are already under debt consolidation program, don’t use further credit just because those are available to you. The actual point of consolidation is to pay off your loans and not to lower your balance so that you can pile it up again. Even when you keep a credit card open to meet up with any emergency situation arise, don’t be an overspender.
Let’s get back to real estate investment tips.
3. Do establish your goals.
While planning for real estate investment, don’t act without a proper plan. Set a goal and then works towards achieving it. The goal should be well thought and before making any move, value it against your goal and ensure that you are on the right track. Maintain a clear idea about your budget, the risks involved, and the exact ROI of your real estate investment.
4. Don’t blindly follow a real-estate guru.
In fact, there is no such real-estate guru who can lead you foolproof. However, there are plenty of them online and offline who promise to make you a millionaire overnight. In fact, making millions is very much without in your reach, but only when you decide to use your common sense and calculations, and not the blind advice of a guru. Investing in anything is actually adapting to a change, and there is no such readymade system as proposed by gurus may be flexible enough to cover all possible variables in such a very dynamic market.
Overall, investing in real estate is not so difficult to make expensive mistakes. Try to follow the best examples and always pay within your limits to taste success.