Are you planning on investing in rental properties in the Portland real estate market, or elsewhere worldwide in 2019?
There’s no doubt that even in today’s economy real estate continues to be one of the best-performing assets because when compared to stocks, bonds or mutual funds over the last 20 years, real estate has consistently produced a stable return for investors on a monthly basis even during turbulent economic times.
If you plan on getting started with Portland Oregon real estate investing the reality is that there is going to be a learning curve but the good news is that you can bypass that learning curve, including rookie mistakes that all new real estate Investors make by reading this article.
Mistake #1 – Not Treating Portland Real Estate Investing as A Business
The first mistake that many inexperienced Real Estate Investors make every single year is not treating their real estate Investments as an actual business. Sadly, some Real Estate Investors look at real estate investing as a “hobby” and this the primary reason why they never are able to see stable returns, or consistent passive income, from the rental properties on a monthly basis.
Before getting started in real estate investing you should commit yourself to viewing your real estate investing as an actual business. This means taking the time to dedicate a work space in your home where you will commit yourself to manage your real estate investments like you would manage a real business.
Once you commit yourself to treat your Portland real estate Investments as an actual business like it deserves to be, the next thing you should do is write down a business plan and establish things like what type of properties you plan on buying, the locations that you want to purchase properties in, and how you plan on financing these properties.
Besides having a business plan that details the items that we mentioned above, your business plan should also detail other aspects of your real estate business like your goals for real estate investing, how much time you plan on devoting to your business, and most important of all you should stipulate in your business plan if you plan on hiring a property management company to manage your rental properties or not after you purchase them.
Mistake #2 – Not Learning The Basics Of Real Estate Investing
The second mistake that you don’t want to make when getting started in real estate investing is to not take the time to learn the basics of real estate investing before you invest in your first deal.
Many investors will start investing blindly in real estate without actually take the time to learn the basics of real estate investing before they spend their first dollar and sadly, their first deals often result with them spending tens of thousands of more dollars than they should or the deal ends up in disaster.
To avoid this happening to you, take the time to learn the basics of real estate investing like how to find a good deal, appreciation, cash flow, and how many ways your investments will generate income for you because taking the time to learn in the beginning will only help you to become a more successful real estate investor.
Mistake #3 – Spending Thousands Of Dollars Learning, But Never Doing
Another mistake that you do not want to make as a real estate investor in the very beginning is to potentially spend thousands of dollars learning, but never doing. The reason why we bring this point up is that every year newbie real estate investors go to seminars, purchase courses, and invest hundreds if not thousands of dollars with gurus, trying to learn real estate investing tips, but then they ultimately end up not using what they’ve learned to actually invest in real estate.
As with any business, the key to success is actually doing or following through with the things that you’ve learned because, you can have all the knowledge in the world about how to invest in real estate but if you don’t actually use it, then that knowledge is ultimately worthless to you.
If you have problems with taking action, commit yourself to spend at least 1 hour per day towards investing in real estate because making this commitment will actually enable you to make real progress towards accomplishing your real estate investment goals quicker than you ever imagined.
Besides committing to taking action, you should also commit to never stopping the learning process. This tip is important because even though you may be taking action and applying what you’re learning, you must maintain your commitment to learning as much as you can about real estate investing over the course all of your career because doing so will ultimately make you a stronger real estate investor in the long run.
Mistake #4 – Not Taking Action Due to Fear of Making A Mistake
As a newbie real estate investor one of the worst things that you cannot do is spend your days not taking action for fear of making a mistake or wasting money on a Portland real estate investment. The truth is that it really is difficult to lose money in real estate if you actually take the time to follow the advice that we gave you in #2 and actually take the time to learn the basics of real estate investing.
Once you understand the basics of real estate investing including: how to find a good deal, how property cash flows, and most important of all how to find a great property manager, you can move forward with confidence that you’re making wise decisions that will ultimately pay off and benefit you many years to come.
Mistake #5 – Not Looking At More Properties
We provided you with a lot of tips in this article so far regarding the mistakes that you do not want to make as a real estate investor but, another important mistake that we implore you not to make is the mistake of not looking at more properties.
Every year Real Estate investors around the world make the mistake of not looking at enough properties during the process of investing in real estate. This typically happens when an investor falls in love with one or two properties and focuses their attention on purchasing those properties rather than continuing to search for the best property that makes the most sense financially.
Remember that real estate investing is a business and you must make a commitment to looking at as many properties that you possibly can until you find a good deal because, it’s very easy for an investor to fall in love with one property because they see themselves living there rather than taking the time to look for other properties which would make a sound real estate Investment.
During the process of searching for a good property you should specifically look for the following:
- The property should make sense for you to purchase it financially.
- It should be close to shops, stores, and things that people in the local community enjoy doing on a regular basis.
- Your future rental property should also be within a 30 minute to 1-hour commute from employers within the local area. This is important because most people do not like to commute more than 30 minutes either way to and from their jobs on a daily basis.
Once you find a great deal that matches the criteria that we listed in this article don’t make the mistake of waiting around for another great deal to come along because the reality is that even though there are many rental properties for sale on the market today, very few will meet the standards which you set for yourself so once you find the optimal property which checks all the boxes on your list you shouldn’t hesitate in purchasing it.
Mistake #6 – Falling In Love With A Property
During your lifetime you may have fallen in love with your spouse, partner, significant other (or your dog,) and that’s a good thing, but the reality is that when it comes to real estate when you are an investor you cannot fall in love with a property. Why? The answer is simple. Once you fall in love with the property you will not be able to objectively make sound business decisions when it comes to things like renovation or improvements to the property because your emotions will always be tied into the property instead of just seeing it as an investment or business decision.
Before investing in Portland Oregon Rental Properties, always make sure that you have your checklist available of what you’re looking for in a property.
Make sure that the rental property will cash flow well and then after the property has met all the qualifications on your list you should move forward with placing an offer on their property instead of making your decision to purchase the property based on your emotions alone.
Mistake #7 – Trying To Buy From An Investor Who Doesn’t Want To Sell
Yes, it’s true that there are tons of great rental properties out there but over time you may come across one or more rental properties which are owned by an investor who is not motivated to sell them.
When you come across such individuals don’t waste your time or effort trying to convince them to sell their property to you because they most likely will tell you to “make them an offer” and you can expect the offer that they want to be much more than what the property is worth.
Always stick with the fundamentals when searching for rental properties in the United States because establishing standards and not deviating from the standards will save you the time, money and hassle of making a poor decision financially that you will ultimately regret later on.
Mistake #8 – Thinking You Can Get Rich Quick
You can definitely make a lot of money investing in real estate but the truth is that real estate is a long game and that means that you cannot expect to get rich quickly or overnight.
The good news is that you can build wealth over time if you’re willing to make the investment in yourself to learn how to become a successful real estate investor, established standards for the type of Investments that you’re looking for and be ready to continuously do the same successful things again and again.
Michael Jordan, the most famous basketball player ever to play for the Chicago Bulls, was well known for being an advocate for practice and doing the same things again and again throughout his career like practicing with his teammates.
Jordan was committed to practicing and improving himself because he knew that he would get out of the game what he put into it. The same is true with real estate investing, if your approach real estate investing with the mindset that you’re willing to do whatever it takes to produce long-term, consistent cash flow, and wealth, you will get back an excellent return on investment if you are willing to continuously do the work necessary to be successful as a real estate investor.
“If you do the work, you get rewarded. There are no shortcuts in life.”
Michael Jordan – Chicago Bulls
Mistake #9 – Thinking You Have To Pay Off Your Mortgages Quickly
Another huge mistake that you do not want to make as a real estate investor is thinking that you have to quickly pay off the mortgages that you have on your rental properties.
Some investors will make this mistake and work longer or harder than they ever have before to pay off one or two mortgages that they may have within a few years rather than being committed to keeping those properties financed for the next 15 to 30 years.
Mortgages are a necessary tool which will enable you to invest in real estate and if you see them as “tools” instead of “debt” he will be able to become more successful investing in real estate than you ever imagined.
Mistake #10 – Not Hiring A Property Manager
Last of all, but most important, if you take away anything from reading this article, one mistake that we encourage you not to make is the mistake of not hiring a property manager to professionally manage your rental properties.
Portland Oregon Property management is the key to success when it comes to owning rental properties because, a professional property management company will alleviate you from having to spend your time, money or efforts in managing your rental properties yourself.
With more time on your hands, you will have the ability to focus on growing your portfolio of Portland rental properties and generating more income than you imagine rather than constantly having to drive out to your properties, make repairs or deal with your tenants when they have issues.
Contact Property Management Systems
At Property Management Systems we are your best resource in the Portland area for sourcing, acquiring, and managing rental properties, to learn more about the services that we can offer you contact us today but calling (503) 515-3170 or connect with us online through our website.