Are you on the fence on making your first property investment? Should you purchase a rental unit? A fix and flip? Or should you just forget it?
Due to growing confidence in the housing market recovery, many are seeing the potential in property investing, especially in home flipping.
Fix and Flip Increases in 75% of Markets
Statistics from RealtyTrac, a national leading source for housing data, shows a 20% increase in home flips during the first quarter of 2016 as compared to the previous quarter. In addition to the Q1 success, fix and flip home investments increased in 75% of U.S. markets during 2015.
In 2015, 179,778 U.S. single-family homes and condos were flipped, which is 5.5 percent of all single-family home and condo sales during the year. This is up from a 5.3 percent share in 2014, marking it the first annual increase in five years.
Are you ready to join the movement? Before you start in real estate investing, take note of these 3 mistakes not to make, provided by first-time property investors.
3 Mistakes Not to Make in Property Investing
- Forgetting to factor in the “little things.” Those things could be insurance, taxes, homeowners’ association fees, realtor expenses, surveying cost, permitting, etc. They add up quickly and will affect your bottom line.
- Hiring the wrong contractor or not hiring a contractor. Hire a contractor with an investment mentality. They get it. They know the ins and outs, have products or suppliers readily available and understand the importance of timelines, scheduling and that time is money in property investing.
- Not having a mentor. With so many dos and don’ts in real estate and property investing, it is essential to have a mentor for guidance. Another set of eyes to review the details and provide expert insight into the potential of the project can ensure you make smart, profitable moves from start to finish.
Whether you are new to real estate investing or a seasoned professional, Catalyst Funding can help you secure property financing. Call 832.648.3626 or contact the hard money loan experts at Catalyst Funding to learn more.