Real estate is one of the best ways of investing money. Whether it is
for capital gains or cash flow, investing in real estate keeps in mind
both. Many sources are available to have access to money for such an
investment and loans can be taken for the same.

Many common mistakes are being made by investors daily. The main
endeavour is to learn and avoid making those mistakes. The lines below
will elaborate the three most common mistakes made by investors while
purchasing a house.

The first mistake is buying a house at a
misled price. Many people think of real estate investment as a
supposition game. This means higher prices being given because the
market may be booming and price increase is expected soon. This holds
true, but only for a short while. Proper timing is essential here and if
not, one might end up losing money. The focus is that profits here are
to be made while buying and not only when selling.

The second
most common mistake is not being in possession of a buyer’s list. This
list comprises of a names of prospective buyers of your property. They
can either be wholesale buyers or retail buyers. Wholesale buyers often
buy property to sell it further whereas retail buyers buy property for
personal use and look for ready to move in properties.

The third mistake is not having an exit strategy. One does not want to
be stuck with property forever when investing for profits. This means
having a selling strategy for the future of the property one is buying.
For example the property bought initially at a discount, can be sold to
another investor who would renovate and resell it for further profit.
This ensures right flow of money instead of it being stuck in a dead use
property.

Here all three mistakes are avoided carefully. The
original buyer who invested the right amount of money, managed to avoid
the first mistake. The exit strategy used is to sell the house to
another investor using the buyers list thus avoided the second mistake.

Hence, being careful not to make these common mistakes, your chances of
being in profit are relatively higher instead of having no buying
strategy. All these things do not guarantee other mistakes will not be
made, but nevertheless avoiding these 3 big ones will save a lot of your
time, money and effort.