THE MOST COMMON REAL ESTATE INVESTING MISTAKES TO AVOID

MAXIMIZE ROI, SAVE TIME, AND MINIMIZE STRESS

Interested in investing in real estate? You’re not alone—many of our customers are on the hunt for great investment properties in Madison and surrounding areas. But, whether you’re familiar with investing or a total newbie, there are some big mistakes to avoid.

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1| RELYING ON EMOTIONS OVER LOGIC
Like many business ventures, real estate investing does benefit from going with your gut, but ultimately data is more important than feelings. For instance, don’t let yourself get attached to a property just because you have good childhood memories about the neighborhood.

2| TAKING ON EVERYTHING ALONE
Though it might be tempting to do everything yourself, including renovations, there’s no shame in hiring qualified experts who can do things faster, better (up to code!), and safer. An essential part of your team will be a qualified real estate agent who can help you score an awesome property at a great price.

3| NOT DECIDING ON A STRATEGY UPFRONT
What kinds of properties will you be investing in? Will your strategy be passive or active? When you make these decisions before getting started, you’ll be able to maximize your time and your team’s efforts while laying the foundation for a long-term plan.

For instance, if your strategy dictates that you’ll be primarily investing in properties for college students downtown, you wouldn’t then decide to buy a farmhouse out in the country. Because your strategy focuses on downtown properties, you will be able to focus your time and money in one neighborhood, on one type of housing—and you’ll avoid needing to find specialists for an antiquated farmhouse.

4| NOT DOING YOUR RESEARCH
Every real estate guru says you need to do your due diligence before getting started. Answer questions like:

  • Is the property in a problematic area, such as a floodplain?
  • What is the local real estate market like?
  • Does the house have permit issues?
  • What is the neighborhood like? Is it safe? Is it well-kept?
  • What is the commute like from your property to essentials like grocery stores and medical care?
  • How much did previous owners pay for the home, and when?
  • Are there any changes coming to the area soon, such as new commercial construction?

Looking for more tips? Check out our real estate investing tips article, which talks about things like active and passive investment strategies, pricing, and more.

If you’ve got questions, you’re in the right place. Give our Madison, Wisconsin investment real estate experts a call today at (608) 957-2683.