Avoid Common Mistakes Made by a Lot of Real Estate Investors and Bank Bigger Profits This article brought to you by Mortgage Secrets for Real Estate Investors Written By James Ferris
There is a lot of money to be made in real estate investing. With the current economic climate and record numbers of houses in foreclosure, now is one of the best times in decades for investors to bank substantial profits. A lot of beginning investors make unnecessary mistakes that cost them a lot of money. Learning to avoid some of the common mistakes will put more money in your pocket. A big mistake that a lot of newer investors make is to fix things that really don't need to be fixed. For example, a lot of people will go into a kitchen and rip out the cabinets. New cabinets will cost thousands of dollars and in many cases refinishing the cabinets or just putting new doors and hardware on the cabinets is all that really needs to get done. Instead of spending $10,000 on custom cabinets, spend $500 to $1000 to refinish the existing cabinets. You don't necessarily want to have the nicest property in a particular neighborhood. If your property stands head and shoulders above the rest you will not be able to sell it for top dollar because all the comparables in the area will have sold for much less and this will affect the selling price of your property. If all the houses in your neighborhood have formica countertops and mid range appliances in the kitchens you would not want to come in and spend many thousands of dollars on granite countertops and commercial grade appliances. You would not get a good return on your investment by doing this. Do not over improve your investment property. Make it nice, but not too nice. Unnecessary repairs are one of the most common and costly mistakes that a lot of investors make. One of the most important things you can do as an investor is to make sure you buy the property at a good price in the first place. It's been said that in real estate investing you make money when you buy a property, not when you sell it. This just means that if you get a good enough deal on the property it's nearly impossible not to make a decent profit. If you get a good deal on a property and carefully select the projects that need to get done you can virtually guarantee yourself a tidy profit. Get home foreclosure listings and find foreclosed homes at huge discounts. Learn where to go to find local bank foreclosures, HUD homes, VA homes, IRS repos and more in your area Click Here! Article Source: http://EzineArticles.com/?expert=James_Ferris This article brought to you by Mortgage Secrets for Real Estate Investors