Idaho Hard Money Loans are an Excellent Financing Option
When you invest in real estate, you want to make money. But buying and selling properties for profit takes some know-how with a dash of patience and determination.
The real estate industry comes with risk, and Idaho’s housing market is moving at a lightning pace. It can be easy to get caught up in the momentum.
Avoid these four missteps rooky real estate investors commonly make – and ensure your investment pays off.
Avoid These Classic Real Estate Investing Pitfalls
Here are four things that often trip up inexperienced investors.
- Lack of planning: Investors must have a clear investment strategy before considering a loan or purchasing a property. What are your goals as a real estate investor, both short and long-term? What type of investment property are you looking for? A fix and flip, a single-family or multiunit rental? How much risk can you afford, and what is your contingency plan if the housing market turns? Investors who are specific about their goals and prepared for how to get there are set up for success.
- Inadequate financing: Investing in real estate takes money. And in today’s housing market, investors with financing are the investors who win. You need adequate funds to purchase and upkeep, maintain, renovate, and deal with the unexpected with an investment property. Major repairs often occur when you’re least ready for them. So have financial resources at the ready. Experienced investors know that hard money lenders are an excellent source for fast, quick approval financing.
- Neglecting to research: Jumping into a property purchase without first researching everything from the local market to the neighborhood to the property itself is asking for trouble. Ask questions about every investment property you consider. Invest in an inspection with a trusted home inspector, look into permit issues and city plans for the area, review comps, and talk to neighbors. Successful real estate investors make fully informed offers.
- Ignoring the tenant role: Tenants will significantly affect your success when investing in rental properties. Purchase investment properties for the tenant type you want to appeal to. Families will rent homes in safe neighborhoods with good schools and shopping; singles will look for multiunits near mass transit and entertainment options. A robust screening process is essential to finding – and keeping – good tenants. And smart landlords know that timely response to repair requests keeps tenants happy and turnover low.
Follow our tips, avoid these mistakes, and you’ll be on your way to building your real estate investment portfolio.
Our Hard Money Lenders Help Finance Idaho Real Estate Investments
As a leading Idaho hard money lender, we have helped many real estate investors get on track with their investment goals. Our equity-based loans provide an easy way to finance real estate projects, whether you’re just starting out or have been investing for years. Your credit and employment history are secondary in our approval process. Unlike conventional lenders, we loan according to your available collateral and plan for repayment. We’ll work with you to determine your loan terms. Call us at 1-888-477-0444 to learn more. In today’s fluctuating market, a direct private money loan from Gregory M. Russell can provide you the ability to meet your investment needs. Ready to apply? Complete our easy online loan request form.