Like any other career or business entity, Investing in Real Estate can be a mind boggling gamble. Like it looks more appealing in Kenya today, the endeavor can take you the wrong way just as it can do so the right way. Many new investors hurry into the market and literally walk off as soon as they disinvest in the so-called lucrative industry.
Why? Here are five serial mistakes that would send your business haywire: –
1.Playing Lone Ranger. Building the right team of professionals is key to this business. Involving people who understand the game, the dynamics of apartments vis a vis bungalows. You need good relationships with at least one real estate agent, inspector an attorney and a lender. These people would help you with your own deals and assist with financing for prospective buyers as well as responding to legal matters whenever necessary.
2.Paying too much.
Investors tend to pay too much for properties. They pay too much for the properties. While the business may take ages to profit, paying too much could lock out your money thus the loss. Economic sensitivity is vital to this business just like any other.
3.Skipping homework. Research and do more research. No one is perfect; Get your homework right before investing. Great would-be investors have failed terribly in the sector for thinking it would work for them without getting prior knowledge.
4.Ducking due diligence. Investors often have to move very quickly on their deals. That doesn’t mean they sign a contract and write a check without plenty of research, though. A lot of young investors often hurry into the market with a hope of learning up in the process. There are never guarantees of the same.
5.Thinking you’ll get rich quick. You want to make millions of shillings in an overnight? Well think again. It takes time to convince prospective clients or to just sell the idea of that land to people. You may invest a lot but do not hurry your products to get you returns. It just doesn’t work. Those who have tried it in real estate have counted huge losses and eventually backtracked.