Investing in real estate has made headlines lately, but many have discovered that this is not the perfect investment opportunity, even though real estate is currently believed to be undervalued by conventional wisdom.
Maintenance Costs
Unfortunately, investment real estate comes with a great deal of risk that the typical person is not usually prepared for. Maintenance costs with single family homes and multiunits have proved to be the undoing of many real estate investors. Many simply assume that maintenance costs will be similar to their primary residence.
In fact, a tenant can cost a landlord much more than predicted. Tenants tend not to keep up with general repairs, and often let minor issues progress without reporting them. In the case of an eviction, an investor has to contend with both a loss of rent money and the threat of vandalism. Expect appliances to wear out faster and cosmetic items such as carpets and paint, to need replacement more often.
Professional property management companies are usually experienced with mitigating these costs, but for an individual investor the cost of one of these management teams will often eat through any profits seen by the property.
Common, Yet Avoidable Mistakes
Real property has been the cornerstone of wealth for thousands of years. Its uses and value are tangible and relatively understandable. While ill-informed speculators have fled real estate because of the housing bust, intelligent real estate investors are enjoying immense profits by expanding their geographic scope and investing for predictable income.
Establish a Solo 401(k) or Self-Directed IRA LLC with Dimension Capital Advisors and gain access to solid investment strategies in real estate.
Dimension Capital Advisors customers utilize our proven strategies to profit from real estate investments in this soft and declining market. Call us today for a free consultation with one of our knowledgeable advisors. 800-385-4210
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Risk Real Estate Gamble
? Photodune | Photodune.net
Source: http://dcaunlimited401k.com/2012/08/the-real-estate-gamble/
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