Exposed: 5 Errors in Buying Real Estate in Cartersville with no or little Money Down
So you are interested in Investing in Real Estate. Problem is, you don’t have the money. You probably have watched videos, analyzed infographics, and read articles and blogs if it really is possible to invest with no money down. You’re on a good start. You know what? This blog is perfect for you because it is part of our series of “Guiding Newbie Real Estate Investor in NW Georgia.” We are going to get REAL!! In this blog, we won’t teach you how to invest with no or little money down, we’ll expose the common mistakes in Buying Real Estate in Cartersville with no or little Money Down.
We have Helpful tips for every listed error. GA House Buyers, Inc. hopes you find this blog helpful. Comment or email us with your suggestions!
5 errors in Buying Real Estate in Cartersville with no or little Money Down
- Incoming and Outgoing
This is the most typical mistake most newbies are committing. We call it the “inexperienced perspective.” Cause of mistake is miscalculation. One example is getting a mortgage more than your income. If you can’t pay $15k of mortgage every month, you shouldn’t grab it.
Remember, it’s not just about Equity or the digit that goes after the equal sign. It’s also about the ability to pay the monthly payments. Expenses are presented after us, displayed or concealed, they are there. You have to be able to pay that. If not, that’s where you make a mistake. Incoming should be greater than outgoing, NOT the other way around.
| Helpful Tip: The “Buying” isn’t the reason people go broke. They go broke because they can’t afford their monthly payments. |
The following errors are related:
- Vacancy
Every day that your house for sale is vacant, you, as an Investor, are not earning. No incoming money equals to no comeback of investment. Vacancy costs.
Advertising isn’t free. To be able to dispose your sale fast, you need to hire professionals. Sometimes, not spending on hiring a professional costs more because it delays the sale.
| Helpful Tip: Include having a reserve account in your important expenses. It’s vital to have a pocket to get extra outgoing money. Just don’t miss recording every penny going out. |
- Repairs/In need of fixing
Home Repair is a huge factor why a house is not being homed by a buyer or tenant. At least not yet. The condition of the property may be tolerated by the current occupant but may be the factor why it’d be rejected by interested buyers/renters.
Yes, some minimum repairs could be shouldered by the tenant, but you are responsible to repair the property too. Especially when tenants move out.
| Helpful Tip: Besides the repairs, the ‘appeal’ of the house needs to be fixed. Keep in mind, beauty attracts the eyes. Decorate the property a bit to make interested buyers fall in love with your home. Again, the sooner the property gets sold/ rented, the lesser the expenses. |
- Lack of pressure
Lack of pressure to get things closed or done is simply wasting your time AND money. Personal reasons like family events delay your work. Other reasons of delay is too much thinking to do something but not really doing it. or planning who will do what but not executing it. Always, always make your effective date clear and fixed.
| Helpful Tip: Plan your week right: both professional and personal. It’s part of your humanity to be with your love ones but it’s also your responsibility to make profit out of your investment as soon as possible. Being on time means being able to arrange and fix your calendar effectively. |
- Misreading Reality
- ARV – Price you bought the house – repairs = cash flow.
If you think the above equation is the formula to earn in Real Estate Investing, then you’re wrong simply because the formula above is wrong. It hides other expenses you are going to deal with like maintenance, advertising, staging, closing costs, commissions, etc. Reality is, these are expensive.
| Helpful Tip: Make sure you have a copy of every penny you spend. Create a spreadsheet and see how really did you spend the entire project from buying, repairing, selling, and being sold. Take notes of your mistakes and wrong habits and make sure you don’t do it again. |
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If you are interested in Investing in Real Estate in NW Georgia, especially in Dallas, Cartersville, Acworth, Emerson, Euharlee, Taylorsville, and White, contact us!