Mistake #2 Failure to do a thorough Research and complete Investigation of the various factors which can adversely affect the Investment.
Purchasing a business or investing in real property in The United States is a process which requires investigation, gathering of information on the subject and careful planning in order to attain the desire objectives.
The process requires the participation, in addition to the real estate agent, the professional counseling of an immigration attorney, a financial planner, a mortgage lender and a certified public accountant, just to mention the most widely used.
Ignoring the contribution that those professionals bring to the transaction, it is like trying to cross a busy highway blindfolded.
The process of investigation and gathering information should begin as soon as the investor decides to get in action. Many investors buy impulsively and then try to justify their decision by “trying to convince themselves and others” of their action.
Each professional would provide the investor with different alternatives and suggest a course of action which best suit the criteria and goals of the investor.
The attorney and the financial planner should come up with the best manner for the investor to take title to the property and work with the real estate agent before an offer is prepared and deposits are made. It is the “team work” and talent of various professionals at the service of the investor. Suggest to stay away from an agent who thinks he knows it all and volunteers to give legal or financial advise. An ethical agent would direct the investor to other professionals in his/hers team.
Many investors are purchasing real property in cash and feel no need for the services and expertise of a mortgage broker. However, a mortgage broker may suggest some financial alternatives that may allow the investor to acquire more assets with the same amount of funds.
The Certified Public Accountant would help in setting up all the fiscal documents required to operate the business or real estate investment. The accountant could help in the analysis of the business being acquired also conduct a “mini” auditing of the income, expenses and rentability of the business. The real estate agent should work with the accountant in developing income and expense projection of the real estate bring purchased. Many real estate agents in their zest to “land a sell” would talk, and talk about the “potential” of the investment without doing a financial analysis of the “worst case scenario”
real esta
It should be noted that it is illegal for a real estate agent to receive any financial compensation or gifts from other professionals. Some agents would avoid getting professionals from other disciplines to be involved in the transaction since they afraid that other experts may say something that “kills the deal”. The principal purpose of working with a team is to serve the investor better.