the BIGGEST D N'Ts of

Real Estate Investment*

* I n C h e n n a i

Paying based on Future Value

All too often, Real estate Investors rely on what a property "could" be

worth, without ever taking into account it's current market value. Make

sure that you're making offers based on the facts and what the house is

worth right now. If you think too far ahead and overly emphasize future

profit margins, you could be setting yourself up for failure.

Sticking to the System

Following a system is great and very useful in starting out the

investment on Real estate in Chennai. But the key is to be able to

improvise when problems arise. Gurus that emphasize their "proven,

step-by-step system" are not taking into account a huge part of the

business: problem solving. Real estate Investors need to be ready to

change and adapt their strategies according to each individual situation.

So, don't get too caught up in a system and forgo flexibility.

Tweaking the Numbers

A major deal-killer is not being realistic with the math. Overestimating

ARV(After Repair Value) or underestimating repairs are a straight shot to

a ruined investment on Real estate in Chennai or any metro city. It's

important to always take time to sit down and run the numbers,

otherwise you could destroy your deal.

Being Lazy with Record Keeping

Keeping adequate records of properties and finances is key. It's always

important to know where you stand and to analyze past investments.

Staying up to date with these records allows you to plan successfully for

future investments, and will make it easy on your tax and loan officers.

Getting Fancy

Sometimes Investors get bored with their projects and their systems, and

opt for new, exciting deals that don't fit their plan. Unfortunately, this is

an easy way to lose everything you've worked towards. It's a good idea

to find a process that works and stick to it; don't try to rush the process

and risk it all.

Over Leveraging

This is the last and most common mistake of investment done often on

Real estate in Chennai and major cities across the world, on our list.

Over leveraging means that you're carrying more debt than your

investment properties can maintain. Keeping up cash-flow is the only

way to stay above water in your investment career.

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