Common Real Estate Investment Mistakes to Avoid
Building cash reserves, minimizing taxes, creating and updating a retirement plan are all critical to the success of portfolio building. Real estate investing is often seen as producing “passive income,” but we all know it requires time, organization, business moxie…and planning. Working with a professional financial planner can help real estate gurus prepare for the future and avoid costly mistakes. What are the mistakes to avoid? Not having a solid financial plan. This involves more than planning how you’ll grow your real estate business. It includes all the financial factors that affect your life and that of your family—your entire portfolio, income now and in the future, taxes, retirement and more. There are many sophisticated strategies to optimize your finances with real estate investing. Making emotional decisions. Put on your business hat and work to keep your emotions out of the financial planning process. Work with the facts and the numbers, not so much with your feelings. Being too risky or too conservative. Maybe you’re a confident investor and jump in without knowing enough. Or, fear of losing money keeps you from taking action. With the help of a financial advisor, you can more easily forecast, evaluate and mitigate financial risks. Over-leveraging during good times. While it’s tempting to borrow when rates are low and you have a great line of credit, expect the proverbial “what goes up…must …”! Downturns do happen, so maintain a realistic debt-to-income ratio to carry you through. Not getting started, or waiting too long. Especially as a young person, it can feel like you have plenty of time to take care of planning for the future…later. Work with an advisor to take you through the process in a manageable way--step by step. Get started! Don’t wait. Managing your money world is a BIG DEAL, and won’t happen on its own! If you seek the advice of a CPA, attorney or doctor when needed, doesn’t it make sense to work with a Certified Financial Planner to keep you on track with something as important as your finances…and your future?
Ready to get started in real estate investing? Schedule a free strategy session with me. First, look over the two ways I can help you buy, sell or invest to get passive income and cash flowing properties quickly in any market. Want to invest in the MN Market? Click here to schedule--MN market. Or, Want to Learn Fast to be a Smart Investor? Click here to schedule--Proven Profit Formula Coaching Program. _______________________________________________________________________________
You are invited to join LeAnn Riley's Real Estate Investing Club--FREE--to gain access to real estate experts who join LeAnn via livestream second Wednesday of every month.