The Biggest Mistakes to Avoid when Investing in Dallas Real Estate

The Biggest Mistakes to Avoid when Investing in Dallas Real Estate

The Dallas real estate market is ripe for investors right now. Prices are low, inventories are high and interest rates remain quite competitive. If you're thinking of investing in Dallas real estate then you may very well be headed in the right direction.

However, along with the benefits of investing in Dallas real estate come a set of challenges. In particular, there are many mistakes that can turn your Dallas real estate investment into a disaster. Although no one can guarantee a return on your investment when speaking of Dallas real estate, there are certainly things you can do better your chances of coming out ahead.

With that said, here is a list of common mistakes (and what you can to do avoid them) that many Dallas real estate investors fall victim to:

1. Failing to research the market and come up with a realistic game plan Successfully purchasing Dallas real estate does not mean that you will automatically come out ahead in the deal. Instead, any seasoned real estate investor will tell you that you must formulate a game plan and be prepared to implement it. Develop a solid plan of attach before you even begin looking at properties so that you won't find yourself in a situation where you investment turns out to be a dud.

2. Expecting to get rich quick If you're interested in a get-rich-quick investment, then real estate probably isn't the right investment for you. Instead, investing in real estate takes a lot of hard work and a considerable amount of time. In other words, don't expect a near-instant return on your investment; rather, you need to expect that you will commit a substantial amount of your time and money before you see a return on your investment.

3. Forgoing a home inspection Just because you purchase an investment property that you plan on renovating anyway should not be an excuse to forgo a home inspection. Many investors have found their renovation budgets busted because of unforeseen circumstances, so take the time to get a home inspection on your property! Because what you don't see CAN hurt you!

4. Underestimating renovation costs Speaking of renovation: don't assume that your renovation costs will be even close to your budget. Expect the unexpected, and expect costs (even if nothing goes wrong along the way) to exceed your budget by at least 10 to 20 percent.

5. Underestimating the hold time for your property You may plan to hold onto your property for just three months while it is being renovated, but are you and your budget prepared to hold the property for considerably longer? In a perfect world renovations will go exactly as planned and the property will sell in the first week it hits the market. However, realistically this usually never happens. Be prepared to hold your property for at least double the time you initially planned for.

6. Assuming you can go it alone Don't ever underestimate the power of real estate professionals when investing in real estate. Carolyn Capalbo, a successful agent based out of Northern Virginia, knows the ins and outs of real estate investing and often encourages her clients to develop strong relationship with real estate professionals when investing in real estate. Real estate professionals like Carolyn Capalbo can help make your real estate investing experience a positive one.

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