The # 1 Mistake Made By New Real Estate Investors
Today I’m going to show you the # 1 mistake made by new Real Estate Investors.
Many Real Estate investors are settling for 6% returns on their rental properties. And compared to Wall Street, that’s not bad. But did you know you can do much better?
So whether you are a new investor or seasoned veteran, there are three factors that determine how much you will profit on a property.
So follow the steps below and you could be getting up to 12% returns after expenses. And that’s double what the average Real Estate investor is getting these days.
But not doing this could cost you up to $36,000 or more.
So let’s pick the low-hanging fruit first.
Return On Investment Adds Up
First of all, let’s compare the numbers. And your goal is to maximize Return On Investment (ROI) after expenses. So we’ll start with a high ROI property:
Property purchase price: $60,000
Return after expenses (ROI): 12%
Monthly income after expenses: $600
Annual income after expenses: $7,200
10 year total profit: $72,000
And now we’ll take a look at a typical investor’s property:
Property purchase price: $60,000
Return after expenses (ROI): 6%
Monthly income after expenses: $300
Annual income after expenses: $3,600
10 year total profit: $36,000
So both had the same initial investment of $60,000.
And the difference over 10 years adds up to $36,000. So that means $36,000 more in your pocket. If you do it right.
Consequently, would $36,000 more profit give you some better retirement options?
Furthermore, imagine what you could do by scaling up that extra profit.
So as you add more properties to your portfolio can you see the possibilities?
How To Increase ROI
So now let’s look at how you can increase your return. And you’ll see how as you learn to find the right kind of deals.
Investment returns vary greatly depending on these 3 things:
- Location
- Property value
- Expenses
Of course, there are exceptions. But usually those 3 things will make or break a deal.
And one of those results in the # 1 mistake made by new Real Estate investors.
Location Is Most Important
Every Real Estate investor knows how important location is. But most investors look at this all wrong.
So let’s look at 2 common problems with location.
First of all, avoid high dollar properties in exclusive resort areas.
Vacation properties may produce a lot of cash for a short period of time. But many investors lost their shirts when the market crashed. And for most it hasn’t recovered.
So avoid expensive vacation and resort areas. They just aren’t stable enough.
Also, another common mistake is to buy local.
It’s natural for investors to want to see properties first hand. After all, being able to see and touch real estate is one of its great appeals.
But your local area is probably not producing the best returns. And they may even be worse than average.
So you can usually get better returns by being a long distance investor.
As a result, picking the wrong location is the # 1 mistake made by new Real Estate investors.
So avoid local properties. You’ll probably find better deals elsewhere.
How to Avoid the # 1 Mistake Made By New Real Estate Investors
So how do you avoid the # 1 investor mistake so you can find great Cash Flow Real Estate deals?
Discover how you can in this FREE report:
“10 Must-Do Strategies To Get Double Digit Returns With Your Retirement Funds using Passive Cash Flow Real Estate.”
With this FREE report you’ll learn how to…
- get returns of 10 to 12% after expenses
- find the right type of property to produce the best returns
- avoid unexpected expenses
- choose the right location for a property to maximize ROI and minimize risk
- and more…
So just fill out the form below to Get Instant Access to Your FREE Report. And be sure to enter your first name and a valid email address so you’ll receive your download instructions.
