Greetings neighbors,

Although the past year or so has been rough financially for many Americans, the economy is starting to look up some and many people are willing to start investing again. If you or someone you know are looking to invest into the real estate market we would like to share a few common mistakes new investors may make and how to avoid them.

1) Failure to Determine Your Time Need- A few things you as an investor would need to address before deciding to invest include: capital appreciation, cash flow, tax benefits, loss of management, equity pay down, and pride of ownership. A real estate professional would be very beneficial to you and can evaluate your needs and insure you have all the necessary bases covered.

2) Not Checking out the Seller of Sellers Agents Numbers- Because claims of high rates or return have a tendency to get out of control don't get sucked in. Make sure you check rents, payment history, taxes, expenses, deposits, and future modifications. By finding the right agent you can eliminate the possibility of overlooking important details.

3) Forgetting You Are Buying a Business- By owning investment property you carry the potential of becoming wealthy as well as having to make difficult decisions such as evictions, re-investment into property, and time management. All of these decisions will require careful consideration, always remember investing is hands on, not hands off.

4) Avoid Negative Cash Flow- Because some property may require a hefty amount of cash every month this can decrease your working capital which can become stressful especially to the novice investor. Remember to stay with your investment and don't prematurely sell.

5) Failure to do a Thorough Inspection- It is best to hire a professional inspector. Make sure to inquire about possible pest problems, structural damage or reoccurring problems. Nothing should be overlooked. Finding a real estate professional who can assist you with hiring an inspector will help you to avoid  costly mistakes.