Grant Trevithick Addison Real Estate Pro Tip - Avoid These Pitfalls

Grant Trevithick Addison Real Estate Investor with another pro tip.

Regardless of how many years you’ve been in real estate, mistakes happen. Even seasoned professionals might occasionally make unprofitable decisions or get into an unfavorable trade. These real estate mistakes are more common than you think, and shouldn’t get you down. To properly equip yourself for these challenges, familiarize yourself with this list of mistakes to avoid when investing in real estate.

Short-Term Thinking

Patience is a virtue; this is especially true in the context of real estate. Many first-time real estate investors buy investment properties with the expectation of massive returns in no time. Quite often, though, building wealth through real estate can take years and multiple smart investments. Whether you’ve invested in a cash flow rental property or are waiting for a property’s value to appreciate, patience is your best friend when reaping benefits from your real estate investment.

Many investors are also drawn to the idea of real estate speculation as a means of making money quickly. When speculating, however, the risks of real estate investing are multiplied. Consider looking into safer investments in order to avoid huge real estate mistakes.

As an investor doing business in Dallas, Fort Worth, Irving, Addison, Carrollton, and surrounding areas I've learned that it takes long-term vision. The "Grant Trevithick" brand has taken a lot of time to cultivate. I have spent countless hours studying and writing a business plan down for what wanted to do. I would encourage anyone to do the same.

Spending Too Much

Even seasoned professionals might fall into this trap: overpaying for an investment property. This is one of the most common real estate mistakes, and definitely one of the most costly. Be sure that you’re well-informed on how to find the market value, and that you’ve run the right analytics. A property needs to have a reasonably high return on investment in order to justify its price.

For this, it’s necessary that you run real estate market research. Looking into your real estate comps, for example, can be hugely beneficial for determining the right price.

Related: How Do You Find Real Estate Comps?

Not Negotiating

Buyers and sellers are both looking out for their best interests. Therefore, negotiating on an offered price can lead you to a place where both the buyer and seller are satisfied. In addition to the price, you can negotiate the terms of the sale and the responsibilities of both parties.

A good negotiator will be firm in their position, but understand when compromise is necessary. Brush up on your skills to make the best possible real estate deal each time. Settling for a subpar deal is one of the biggest real estate mistakes that investors run into.