Unlocking Wealth : 5 Real Estate Mistakes to Avoid for Smart , Passive Income
By Hugh Zaretsky
Real estate investing is an extremely powerful tool for building shortterm and generational wealth . This includes offering a route to financial freedom while delivering passive income . However , navigating this path successfully requires awareness of common pitfalls that can thwart even the most wellintentioned investors . With a diverse portfolio that spans from $ 40,000 singlefamily homes to milliondollar properties , I ' ve gleaned valuable insights on effective strategies and mistakes to avoid . Here ’ s a detailed look at the smart ways to invest in real estate and the top five mistakes people often make , enriched with reallife stories from my experience and some pro tips .
1 . Failing to Do Thorough Market Research
What to Do : Conduct comprehensive market research before investing in areas , especially in locations that you do not know well . Have you seen the Homes . com commercials ? They joke about going undercover and doing the
With a diverse portfolio that spans from $ 40,000 singlefamily homes to milliondollar properties , I ' ve gleaned valuable insights on effective strategies and mistakes to avoid .
research for you . However , this is what Real Estate Portals : Sites like Zillow , you need to do especially for outofthearea markets . You need to understand Realtor . com offer market trends and
Homes . com , Redfin , PropertyShark and local economic drivers , population property value data . growth trends , employment rates , and housing demand .
Market Analysis Reports : Industry
Is there a new casino going into the reports from companies like JLL , CBRE , area or is a factory closing ? Both can or local realestate associations provide have a significant impact on the local indepth market insights . economy and the housing market .
** Mistake to Avoid :** Investors often
Use resources like : buy properties that are cheaper but in areas with declining populations or Local Government Websites : Access economic instability , leading to poor economic development reports and city returns , and high vacancy rates . planning documents . It is mainly free and open to the public . You just need to
Story : Early in my career , we bought a know where to look . portfolio of “ cheaper properties ” compared to where I live in a small midwest town with the expectation of significant growth happening in the area . However , the city delayed the major growth project in the area . While other areas of the country grew 10 % to 50 % before or during COVID this area stayed flat . This taught me the importance of thorough market research .
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