9 Signs You Need Help With Real Estate InvestingDec 12, 2021
Investing in real estate can be a scary and daunting process (even for experienced investors).
There are many things to think about, from credit scores to rental rates to the type of property you want to buy.
As a result, it's easy for investors to miss something, miss out on deals or make mistakes that cost them in the long run.
In this blog post, we'll talk about nine signs that show you might need help with your real estate investing ventures.
1. The deal is gone before you make an offer.
This may be that you're in a competitive market or you're stuck in analysis paralysis.
Experienced, well-capitalized investors move quickly and know what they're prepared to pay and on what terms.
Real estate is all about being in the right place at the right time, and that usually means having money available to buy it when you find something suitable.
However, if deals are going too quickly before you can get your offer together, you may need to invest some time and money to work with people who can help you gain the confidence to take action.
2. You are not confident about budgeting your renovations.
Before you buy a property, it's always essential to know how much renovations will cost.
If the budget is too high for your liking or seems unrealistic, then consider finding contractors who can help with that part of the deal.
You don't want to get into something without being prepared and having extra money set aside for unexpected costs (like a busted water pipe or broken furnace).
3. You can't find properties that match your criteria.
This may mean you haven't done enough research, don't understand the fundamentals of real estate investment (such as cash flow and appreciation), or are too emotional about particular areas/properties.
If you're not finding what you want at prices that make sense, consider investing in real estate coaching or mentoring to help you with your criteria.
4. You can't find good tenants.
If the properties you're looking at are vacant for long periods, it may be that your screening process is not thorough enough.
It's common for investors to have trouble finding great tenants who pay on time, treat the property with respect, and are easy to deal with.
If you can't find good tenants, this may signify that you don't have the screening or eviction process down well enough.
5. You can't stand your tenants / they've caused damage to your properties.
This is another common problem for new investors who haven't developed a strict screening process or eviction plan.
You can't do business with everyone, and some tenants are difficult no matter how well you screen them (or what type of lease agreement they sign).
If your properties have incurred damage because of bad tenants, it's time to take action—either by finding better tenants or developing the skills necessary to protect your investments.
6. You can't get a bank loan, or your credit is too low to buy properties.
If you find yourself in this situation, it's time to improve your credit score and find ways of getting higher down payments (or cash for closing costs).
If you're having trouble borrowing money through banks and other traditional lenders, consider using private money lenders to finance your deals.
7. You can't find people who want in on the deal with you.
Many new real estate investors struggle when they go it alone—when nobody wants in on their deals, or they cannot assemble a group of like-minded individuals for joint ventures, syndications, and partnerships.
Consider finding a real estate coach or mentor to help you find the right people and put together deals that will allow you to get your properties under contract.
8. You can't find good contractors who want to work on your properties.
This may be due to inexperience, lack of referrals from other investors, or inability to offer competitive rates for services.
In addition, you may find that you're having trouble finding contractors who are willing to work on your properties in the timeframe and for the prices you want—which is another sign it's time to get some help with real estate investing.
9. You can't manage all of your properties yourself.
For many investors, managing their property portfolio becomes too time-consuming.
As a result, it's common for real estate investors to realize they can't do it all independently and start looking for property managers, rental agents, or another type of help.
If you find yourself in this boat (or if you're tempted to take shortcuts like ignoring maintenance issues because the rehab process was too stressful), consider hiring a management company to help you with your investment.
The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax, or similar matters and should not be relied upon for such purposes. www.marcindrozdz.com is not a financial or tax adviser. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. www.marcindrozdz.com, its subsidiaries, and affiliates are not responsible in any manner for direct, indirect, special, or consequential damages however caused arising from your use of the information contained herein.