Common Mistakes Made in Commercial Real Estate Investing

Common Mistakes Made in Commercial Real Estate Investing

The commercial real estate industry is a lucrative investment option that is highly dynamic that can easily propel an aspiring investor to success. Much due diligence before investing in commercial real estate is necessary. Among the areas that an aspiring entrepreneur should focus on before establishing a business include understanding the common mistakes that are often committed when investing in commercial real estate.

Inaccurate property valuation

In the commercial real estate industry, property valuation is a crucial entity that should be mastered with great precision and accuracy. Sometimes, aspiring real estate investors make the mistake of underestimating or overestimating the net worth of a property. Failure to accurately consider all the variances that determine a property’s net worth in a market makes such an investor to invest more than necessary. Generating a profit from such investment becomes an uphill task.

Inaccurate sources of information

Investors In the real estate industry should rely on a great wealth of accurate and reliable sources of information when making decisions. Quite often, ambitious real estate investors fail to exercise the necessary due diligence when sourcing information to advise their decisions. Focusing on opinionated publications and failing to benchmark information may lead to wrong and costly decisions.

Taking too much risk

Risk-taking in the real estate industry is considered as a norm. As an investor, it is important to consider weighing each risk to ensure that it is manageable. Some of the common risks that investors have to bear include taking loans to finance investments such as property acquisitions. As part of the due diligence, the investor should consider aspects such as loan-to-value and the debt coverage ratio to ensure that they are within manageable limits.

Improper timing of decisions

Decision making in real estate investments should be precise and well researched. As an ambitious investor, it is quite common to make rushed decisions, such as acquiring large properties at times when the market is not favorable. Poor timing may cost the investor capital as they will have to wait for the market to stabilize before making sales and profits.

Choosing the wrong market

The choice of investing in the real estate industry should be precise and well-researched. Sometimes, investors fail to consider the numerous factors at play when choosing the right market and location to base their operations in. Poor choices, in this regard, may stagnate the business at a later stage as moving products in the market will be substantially tough.

7 of the Best Real Estate Investing Podcasts

7 of the Best Real Estate Investing Podcasts

For anyone interested in learning the art of real estate investing, education is the key to success. But in our busy lives, it can be difficult to carve out time to read a book or do research on the Internet. Thanks to the rise of the podcast, you can educate yourself on the go whether you are in your car, on the train, or even on a plane. When you get the chance, try out one of the seven podcasts. They will help teach you the ins and outs of real estate investing without taking too much of your time.

1. The Real Estate Guys Radio Show

The Real Estate Guys have been broadcasting on traditional radio since 1997. Now their show is available on demand. The podcast is loaded with solid information on investing in real estate. Hosts Robert Helms, professional investor, and Russel Gray, financial strategist, educate and entertain in this fun podcast.

2. Real Estate Investing for Cash Flow

Kevin Bupp, the host of the Real Estate Investing for Cash Flow podcast, provides actionable tips to help increase cash flow when investing in rentals and multi-family homes. He features successful real estate investors who have been able to create passive income through real estate.

3. Real Estate Investing Mastery Podcast

Joe McCall reveals the secrets of investing in real estate so that his listeners can escape their day jobs. McCall teaches fast cash strategies and other investing tips to help investors obtain the freedom they dream about.

4. House Flipping HQ

Justin Williams interviews top real estate home flippers and professionals so that listeners can gain insights and strategies on how to get started and become successful in real estate investing. Williams provides actionable information that listeners can use today.

5. Let’s Talk Real Estate Investing

Sharon Vornholt brings decades of real estate investing experience to her podcast. She helps investors create a name for themselves and develop marketing plans that will take their businesses to new levels.

6. The Mobile Home Park Investing Podcast

Kevin Bupp and Charles DeHart teach how to build a steady stream of income by investing in the highly lucrative mobile home park market. Those who master these investing principles can bring superior returns over traditional real estate markets.

7. The Ultimate Real Estate Investing Podcast

Sean Terry claims investors can quit their day job in 19 weeks or less when they apply his principles of flipping properties in their spare time. He teaches the tips and techniques needed in today’s real estate market to make it happen.

Learn more about real estate investing podcasts here.