The $750 Novice Lesson We Have Learnt Before Landing Our First Investment Property

Many lessons we learned from our career and experience. We also learned some investing lessons in our real estate investing career. Let’s start the lesson with the point why we selected a particular market.

Selection of a particular market

Prior to anything else, the important step was to catch our real estate investment agent. The real estate agent is always a very vital part of the team we are creating. The second step is to inform the agent that we have the funding and we are ready to start now. Our agent was super excited to help and pursue, Although the target market we have set was an hour away from us. We selected this specific market for some reasons that are:

1. The target location is still close to check on the properties and stop by randomly.
2. We are currently living in a high buy-in rate. And the new market is at a low rate.
3. In our target market, there is a hospital, university and military base.
4. The Rate on Investment is also higher.

Unseen Location

Many investors do no physically see the location and the properties. They usually go with the pictures and disclosures. We almost disagree with this particular style of investment. The main reason is I have seen many properties which I do not like first but I purchased them at a risk if it seems a bit right deal. And trust me you should go by yourself to see the location. Unseen locations can destroy your property deals. That was the reason we all went to the location. We have not found anything suitable or attractive. First few trips were a total fiasco. Our team was willing to do minor repair and renovation but we were looking for a good place.

First Property

We strolled for some days and after a few trips, we have found a good property. We have seen it before but we left that because that was out of our target. But still, we find it convenient as compared to others. The location was very good and suitable as per our demand and likes. And also, the owner negotiated in the price with us very well.  He lowered down the price enough. That seemed a good deal we cracked.

After the 2 weeks of the contract, we wanted to go for an inspection of the property. The inspector was also included in our team. And he was ready to go for an inspection. I and my property manager wanted to meet him.

The first investing mistake we have done.

After the contract, we put outside of the property to be advertised. Not the inside picture yet. Because the saga of the inside image was different totally. The building was in old condition and we needed a potential amount to repair it. It was round about $50-55k. and it was totally out of our budget. The reasons were that building was not our business model and we were totally not interested to fix even.

I met my property manager and the inspector. We all agreed on the point that this property will not go on the advertisement. I simply wanted to withdraw the deal. The only possible way to stick on that deal was if he reduces the price, but still, it needs a lot of fixes and repairs. I and my team were not interested in doing so.

What I and my team lost

We pull out the deal and lost a huge amount of $500. We were lost our all budget even we could not pay the fee to our inspector and real estate manager. The total we needed was $750 and we were out of it.