Real Estate Blog

We’ve seen a significant increase in the number of real estate investors in Austin over the past few years. As you might expect, the low-interest rates and a growing economy have attracted more and more investors to our fine city. However, it’s not only those investors with backgrounds in real estate that are looking to cash in on the prime market. Many of these new investors are also new to the world of real estate investment generally, and we had them in mind when creating this month’s posts. With that said, novices and seasoned property investors alike can certainly benefit from a refresher on best (and worst) practices.

Cash flow is a vital element for any business minded, but especially when it comes to entering the world of property investment. Novice investors should avoid the “learn as you go” approach given the industry’s steep learning curve. Instead, those looking to invest in the property should first invest in their education of the market before actually investing in the market.

One of the worst habits for beginners to get into is approaching real estate investment as anything other than a business. In any field or industry, successful investors know their market. For property investors specifically, not knowing the market in any locality is a hazard. The way that looks in real estate is buying property in a neighborhood without knowing its potential. Having the foresight to consider what the area will look like down the road is a valuable skill that can be developed by working with an investment or property management group that has the investor’s best interests in mind.

Buying low and selling high is not a universally beneficial exercise. Other aspects of overall rental potential include understanding the differences between inexpensive and cheap, and knowing what both of those things look like in each market. Properties are listed below market value for many reasons, including the condition of the property, work required to get it ready to rent, and area in which it’s located.

When looking at real estate ventures to potentially add to your investments, these common pitfalls must be taken into consideration. By partnering with experienced property managers, investors starting out in real estate can gain experience determining what good rental property deals do and don’t look like, and just as importantly, learn how to avoid bad investments. One investment that is universally worthwhile is to seek the guidance of investors more experienced in property management.