Lack in planning: – There is no proper plan like which type of properties one should buy and how to take steps in business. Maximum amount should be fixed for a deal to be made or to cancel it. If one is going with the flow, his business is in grave danger.
No studies made regarding market: – Zack Childress suggest you if you are putting your family’s money at stake just to start real estate business, firstly evaluate yourself. Go to library and get local investment chapters clear in your mind. Attend meetings, where these deals are discussed.
Thinking of getting rich overnight: – This thinking of getting rich overnight is impossible. A business takes time to establish. One should be very clear about this if getting in real estate business.
No research regarding property: – Experienced real estate investors like Zack Childress get every detail about property first and then proceed on deal. But newbie lack in this and they buy property with no match of cost with doors and floor.
Buying property at higher rate: – This factor is directly related to your profit in deal. You must buy a property at lowest possible rate, so that you make more profit after selling.
No team: – You want to do it all alone then you would end up doing nothing. Having a strong team will make your business grow. Having real estate agent Zack Childress and home inspector is essential. One attorney and lender would help your prospective clients and you greatly.
Lack in planning of cash flow: – Once you buy a property, it is not going to be sold on the spot. For the time being you need to maintain it. The money is going to be spent in its maintenance. Proper planning would help you to recover it.
Once property is bought- what’s next?
You think of only one option of selling it but there are many with us. You can rehab it and then put it on rent. You can also sell it to other Investor and still make your profit by that. By this Zack Childress can raise the value of property and generate revenue.
No cost estimation: – You must calculate the money you are spending on the property before and after buying it. With these calculations made you can predict the profit you are going to make. If the deal takes you in loss, cancel it at once.
Note : Originally published at zackchildres.blogspot.in on February 29, 2016.