WHAT NOT TO DO WHEN PURCHASING INVESTMENT PROPERTIES IN BRANDON, FLORIDA

December 23, 2024

by admin

Investment properties in Brandon are becoming one of the fastest means of creating long term wealth in Florida in the United States. Humans will continuously need a roof over their head in anything they do, whether for business, leisure, or residential purposes. There is currently a large population flow in Brandon today, which has resulted in high demand for residential buildings, offices for businesses, and buildings for recreational activities.

This is the golden time for a smart investor to see and tap into the opportunities that abound in this market by purchasing real estate properties in Brandon. Real estate investment is the only guaranteed investment that appreciates with time and results in a negligible loss, making this investment the best for generational wealth creation.

Unfortunately, many newbies and inexperienced real estate investors rush into the booming Brandon real estate market without adequate knowledge and expertise, which has resulted in a heartbreaking loss for many. It is one thing to be informed about the opportunities that abound when purchasing investment properties, especially in Brandon, and it is another to know how or how not to go about it.

The Investway Group will be offering you tips from our over a decade of experience operating in the Brandon real estate market. We have been acquiring highly profitable investment properties in Brandon for our partners, without them breaking a sweat. We put together some tips to watch out for when buying real estate investment properties in Brandon from our donkey years of experience. Enjoy!

Acquire ready-made investment properties in Brandon at the Investway Group now!

Why Real Estate Investing?

Real estate is as sure as long as humans exist, and they live on planet earth. For as long as there is land, the real estate investment business can never go into extinction or become less profitable. It is one of the first guaranteed methods of creating long-term wealth. When well-understood and pursued with the right amount of caution, it can transform financial stories in the short and long term.

It is always advisable to possess multiple streams of income if you want to create wealth. Diversification is vital in our personal and investment journey. However, real estate investing has plunged many ignorant people into unending debts that will be forever serviced. This is not because the real estate industry is terrible, but instead because of the investors’ poor decisions. For example, many investors make awful mistakes that nullify their investment goals when purchasing investment properties in Brandon.

Fortunately, as much as many people have made terrible mistakes in this industry, most mistakes can be avoided when some common errors are watched. There are frequent errors ignorant investors make when buying investment properties in Brandon, Florida, which can easily be avoided to reach your investment goals. Our expert team at the Investway Group has curated some of these common mistakes to guide you from being a real estate victim.

Contact the Investway Group’s team of experts for profitable investment properties now!

Common Mistakes To Avoid When Acquiring Investment Properties In Brandon

Purchasing investment properties without adequate knowledge of the local market can be very suicidal, especially in dynamic markets like Brandon. When you consider all the steps that must be taken before you can acquire an investment property traditionally, there is always a big room for mistakes to take place. To guide you in the Brandon real estate market, we have highlighted below the necessary things to watch out when going all out for Brandon’s dynamic real estate investment properties.

Never rush the deal. Real estate deals are not meant to be rushed. When there’s a rush, be super careful.
Don’t neglect paperwork. Irrespective of how good the deal sounds, always read the contract entirely before signing or paying.
Due diligence. Ensure you carry out adequate research on the investment property and the location before you go ahead. When you want to acquire investment properties in Brandon, make sure you carry out a week of adequate market and property research.
Quit daydreaming. Daydreaming and hyper-expectations are bad energy for good investment property decision making. Get realistic with yourself on any property.
Don’t fall into the deadly hands of cost-underestimation. Estimating a thousand while spending ten thousand on repairs, has set your investment goals back by ten thousand dollars. Always be careful of underestimating.
Be in the right place at the right time. Wrong timing can kill any promising investment property deal. Ensure you buy at the right time, as not all times are good for purchasing. You might want to consider some seasons, natural disasters, etc. before you go ahead to pay.

It is possible to make some mistakes in the Brandon real estate industry; however, most of them can be avoided. Purchasing investment properties in Brandon requires expertise and experience. You can leverage on the Investway group’s team of experts to save you from costly and regrettable mistakes today!

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How to Evaluate A Real Estate Investment Deal in Tampa (resources)

We talk with lots of people looking to buy real estate investment properties in Tampa and surrounding areas. Some of them know what they’re doing… and some of them are still in the learning process.

But, since our entire business is finding great deals… and often passing those deals onto real estate investors like you at huge discounts… I thought it would be a great idea to share with you some resources on how to effectively evaluate a real estate investment deal. This works in any market… Tampa, surrounding areas, Florida, any other states across the country.

When you really boil it down… evaluating a real estate deal is a pretty simple process. If you’re looking to buy real estate as an investment, wholesale properties, hold them for rent… whatever, one of the most important parts is buying it right (i.e. – not overpaying).

So lets dive in.

How To Evaluate A Real Estate Deal – (for single family houses)

There are just a few main elements when you’re evaluating a deal.

Cost of repairs needed to get it back up to good condition
The after repair market value of the property (what it’s worth and can sell for today once it’s fixed up)
If you’re going to buy and hold for a rental… you need to know what you can rent it out for and what your “debt service” (mortgage payment) will be. Knowing this makes sure you’re buying so the property cash-flows each month

There are other things you can (and should) look at too… but those 3 are the main important things to look at first.

Cost of Repairs

One of the things you should do when you are looking at a property is find out how much it’ll cost you to fix it up to a point where it’s in great shape. In other words, the cost of repairs. This could be a new roof if it needs it, carpet, paint, a new kitchen, yard, maybe even more.

To find a good estimate of cost of repairs, the best advice we have is to get to know a contractor or two in your area and have them walk through the properties with you the first few times… have them quote out the repair cost… and build that into your offer.

After Repair Market Value

This is simple, but many investors get stuck on this part. This is essentially what you could sell the property for today… after you repaired it and brought it up to a great condition. This is found by finding out what other similar houses in the same area are actually selling for. NOTE: Don’t look at the “Listing” price… look at what houses similar to yours have actually sold for in the past 3 months. This helps you determine how much you could actually sell that house for if you had to… right now. You never want to over pay to a point where you can’t sell it for a profit in the next 3 months.

How do you find this? There are services out there that can help you with this… but often times the best way to find out the true value of a house is to talk to a Realtor that you know… or an appraiser. Heck, if you don’t know one… call up a few today… tell them you have a property that you’re potentially going to sell in the near future… and ask them what they think it should sell for.

Buy And Hold For Rental

So, you’re going to buy and hold for rental? Great! You don’t need to worry about what it’ll sell for right away. What you need to know is if it’ll pencil out on a month to month basis. You know… cash flow.

So, talk to a mortgage broker (or a private lender) and find out what the monthly mortgage payment will be for that specific property.

Then find out what you can rent the place out for on a monthly basis.

Then, you work backwards… and find out at what purchase price your mortgage payment will be low enough so you can make the monthly cash flow you need to make on the property. Be sure to figure in other expenses too like property taxes, maintenance expenses, property management fees, and keeping money in reserves for future repairs.

So, your offer price here should be:

Monthly Mortgage – Monthly Rents – Operating Expenses – Taxes & Insurance – Monthly Cash Flow = Offer

Simple enough right?

The cool thing is, the more you’re bringing into the deal in cash… the lower your mortgage is.

Making An Offer

We’ve been talking about how to look at the numbers and analyze a real estate deal.

From there, just make an offer. Many times the properties we let you know about will already be so deeply discounted that we get multiple offers… often above our asking price.

So, if you really want a property… find out what is the bare max you could buy the property at… and offer that. Otherwise you may lose the deal because someone else is likely making an offer too.

With that said, the golden rule in real estate is to never over pay for a property. That’s why our own deal analyzing criteria is so darn strict… and why our buyers (like you) get such great deals.

I hope this little tutorial has helped you sharpen up your real estate deal analyzing skills… and we really look forward to working with you in the near future.

If you have any questions at all… don’t hesitate to contact us anytime for anything.

Happy investing!