“I can buy that property for $30,000, put $2,000 into it in cosmetics and then resell it for $45,000”.
Not so fast…
It’s common for new real estate investors to forget about transaction and miscellaneous costs. Here are a few, of MANY, costs that new real estate investors often forget:
The bottom line is, make sure there’s enough profit built into your deals BEFORE you get into the deal.
That’s why it’s so important to have a strong marketing campaign to generate quality leads (Hint: Don’t waste your marketing dollars advertising something that makes you blend in with the crowd – get creative).
Don’t make the mistake that so many new investors make and underestimate the cost of doing the deal. If you do, you could quickly find yourself losing money on that deal you thought was so great.