At MaxWell Property Management Group
Real estate ownership continues to be the number one way people achieve financially independence and wealth. We want to be part of the team that helps guide you through the process on a step-by-step basis. We have helped hundreds of people increase their wealth through real estate - and we can help you too!
Whether you are looking to buy your first family home, invest in a multi-family or commercial property, or sell real estate - we can help. Because we manage hundreds of real estate investments, we can guide you to select an investment property that will generate cash flow and increase in value. We are committed to maximizing each and every client's investment and / or portfolio to its full potential. Call MaxWell Property Management Group so that we can you find your next investment today 818-860-3939 or e-mail felipe@mwpmg.com and start investing for your future!
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3 Pitfalls of Real Estate Investment
OVERPAYING
OVERLEVERAGING
MIS-MANAGING
WHEN IT COMES TO INVESTING REAL ESTATE, THERE ARE 3 PITFALLS THAT CAN IMPACT YOUR CASH FLOW AND ROI. WE WANTD TO DISCUSS THESE 3 POINT WITH YOU TODAY:
1. OVERPAYING
Purchasing an #investmentproperty, especially if you are a first time property investor can be a challenge if you do not have good knowledge of the market. You must stick to your budget and make sure the numbers make sense to get the best outcome : the one that matches your overall goals. Be clear about the goal of this investment, is it to generate positive cash flow for passive income, is it a long term equity building strategy or some combination of both? It is critical to disconnect the emotional aspect and be very objective when deciding on which property to invest in; otherwise you may end up overpaying for your investment.
2. OVERLEVERAGING
Before #investing in a particular property or #multifamily , make sure you run the numbers, gather as much data as you can, build a spreadsheet and review the numbers . Be conservative in your estimations for categories like repairs and maintenance, and get solid figures for utilities, insurance, taxes and carrying costs for money borrowed. Calculate the costs for renovations to have the units made rent ready, run a rental analysis and make sure each units is not over-leveraged or in other words “under water”. Lastly don’t forget to consider lost rent due to unit turnover and time on market to rent. Without taking all the factors into consideration you could eventually find yourself in a challenging financial situation.
3. PROPERTY MANAGEMENT (OR LACK OF)
Some #realestateinvestors may be able to self-manage their properties. By doing so, you need to understand the landlord tenant laws, tenant screening process, lease process and most of all be available for any maintenance issues day or night. The eviction process can be very costly and draining. Hiring a professional management company can bring tremendous value to your property investment experience. A #propertymanagement company not only understands the market and the industry to fully optimize your rentals but also will handle every detail from finding a qualified tenant, bill pay, rent collections, lease signing, 24/7 maintenance calls to eviction process and more. It will bring you peace of mind and will allow you to focus on your full time job or even better search for the next property investment. Time is money.
