Learning something new can be filled with fear and uncertainty. Our job is to help you step past that uncertainty and to LOVE investing in real estate. Here are five mistakes that new investors often make in the Greater Chicago Area:
1. Rushed Partnerships
Avoid any potential investing partner that is pushy and refuses to explain things to you. Investing in real estate can be a big decision and we encourage you to ask as many questions as needed while interviewing a potential partner.
2. Lazy Due Diligence
It can take hours to go through a potential investment for a deal that may not go through. This can be extremely frustrating for some investors. We encourage each investor to their own checklist to ensure that all the necessary research is being done on each property. Having a written list can help prevent lazy due diligence during times of discouragement and/or stress.
3. Avoiding Partnerships
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Depending on you and only you can be difficult; especially during times of discouragement and stress. We encourage you to work with an investment partner or a consultant. Working with an investment partner allows you access to more education as well resources. Keep your mind open to potential investment partners.
4. Avoiding the Worst-Case Scenario
Before taking on an investment, consider what the worst-case could be. What is the potential loss that could occur? Who is responsible for what loss? What documents and contracts will help prevent any issues?
5. Cutting Losses
Even if all diligence is given, at times, an investment may not turn out the way you hoped. Instead of continuing to invest your time, energy and money into the property, decide when it feels right to walk away.
We hope that you LOVE these investing tips and have learned from other’s mistakes.
Original Article: https://www.cthomesllc.com/2018/12/avoid-these-5-costly-investing-mistakes/