No Comments

3 Tips for Investing in Real Estate for Retirement Income (2019 Update)

Whether you’re planning on retiring in a year, five years, or twenty years, you’re probably not looking forward to living on meager checks from the Social Security administration. Your job’s retirement plan may be good, but it’s likely not going to leave you living in the lap of luxury, either. That’s why it’s important to make the right investments now so that you can gain passive income and continue making money well after you’ve retired.

Real estate investments make sense for this because real estate is a brilliant hedge against inflation, and it’s a great source of passive income, as well. If you want to gain the most income with the least amount of effort, though, you’ll want to follow a few simple tips.

Find Truly Passive Income Streams

First of all, you may think that you want to buy, renovate, and flip houses to make more money and work on your own schedule. However, unless you put a lot of that money away and/or invest it in other areas, this is not a great way to create passive income, as you’ll need to continue flipping to keep making more money.

You may think, then, that fix-and-hold properties are the way to go because you can get great deals on distressed properties, renovate them on a budget, and then rent them out to tenants for monthly income. This is still a fairly active means of making income, at least at the beginning, but once you’ve established a relationship with a good property management firm, you can begin to relax and enjoy your monthly cash flow. A better method for a lot of people is to choose turnkey properties that require no work, often come with tenant acquisition and property management, and allow you to start collecting income from the beginning. Other good options include investing with REITs (real estate investment trusts) and/or crowdfunded real estate platforms.

Don’t Forget About Taxes

Now, whenever you sell a property at a profit, you will owe a substantial capital gains tax on that property. However, if you sell the property in order to buy another investment property, you can use a 1031 exchange to defer paying your capital gains tax indefinitely. This is something to consider when creating retirement income through real estate investments, as you cannot apply a 1031 exchange to REIT investments and some other equity investments. If you’re concerned about taxes – and you should be – talk with your financial advisors about the best options for your portfolio.

Work With Real Estate Experts and Financial Advisors

Finally, don’t try to do all of your investing on your own without any expert help or advice. First of all, you want to make sure that you’re investing in properties that have low risk levels and the kinds of rewards that will yield good monthly or quarterly cash flow now and into your retirement. This is harder than you might think if you’re new to investing and/or you don’t have a lot of experience in real estate. Plus, it’s sometimes difficult to determine how much of your assets to invest in one or more real estate developments to get the most from your capital.

When you work with a qualified real estate investing firm, you’ll have access to real estate brokers and agents, as well as financial and investment advisors who will take the time to understand your portfolio and your needs. With their help, you’ll have the best chance of making the right investments to continue making money long after you’ve retired.

No Comments

2019: A Promising Year for Rental Real Estate Investments (2019 Update)

Rental real estate has always been considered a lucrative and stable investment. Traditionally, real estate tends to appreciate over time, so it’s a great hedge against inflation. At the same time, rental properties – whether they appreciate or not – give investors regular income that they can use to pay down their mortgages, save for retirement, and/or invest in other properties.

As much as rental real estate has always been a good choice for most investors, this year looks particularly good for this investing sector. Why? Several factors point toward profits for investors getting into rental properties.

Rental Nation

As of last year, the United States gained a new nickname – Rental Nation. Before the housing collapse in 2008, renting was seen as a failure or a sign of financial struggle. If you were eligible to buy a house, you were expected to do so. After the housing bubble burst, though, a couple of things happened.

First, many people who were once eligible to purchase properties are now relegated to renting for several years because they were forced to go through short sales or file for bankruptcy. At the same time, thanks to the fluctuations in housing markets around the country, more and more people are seeing renting as a viable option that will not put them in as much financial danger as buying a house in a questionable market. Thus, there’s more demand for quality rental properties all over the United States.

Monthly Cash Flow

With an increased demand for rental properties, you can be sure that your property management company will have no problem acquiring quality tenants who will pay their rent on time every month and take good care of your property. This will result in monthly positive cash flow from the property. Thus, whether or not the property appreciates, you can gain passive income from it that you can use to grow your investment portfolio and your net worth.


While we have seen one significant crash and a lot of fluctuation over the past few years, over the long term property tends to appreciate. Thus, while you’re making monthly income from your rental property, you will also have a quality hedge against inflation with your initial investment. And, when you do decide to sell in the future, you’re likely to sell at a significant profit.


Looking toward other, larger investments in the future? You can actually use your rental properties as leverage and collateral for those. Plus, when you decide to sell a property with the intent of buying another investment property within the next few months, you can apply a 1031 exchange to it and defer your capital gains tax for as long as you own that property. Then, when you eventually decide to sell that property you can do the same thing again if you intend to continue investing.

Texas Is a Market to Watch

The rental markets throughout Texas, and especially in the Dallas-Fort Worth area, are showing consistent and significant growth. With numerous major corporations calling Dallas home, new residents are moving to the area all the time, and they need quality apartments and houses to rent. Thus, the market is in the perfect place to yield great returns for investors buying rental homes.

You can see, now, how 2019 is an exciting year for rental real estate investments in Dallas. Whether you’re interested in purchasing single-family homes, apartment buildings, or equity in larger commercial residential properties, now is the time to get on board with Dallas rental investments. Talk with a trusted financial advisor today to determine the best investment(s) for your portfolio.

No Comments

How to Get the Best Possible Rental Property Appraisal (2019 Update)

Whether you’re looking into refinancing a rental property to get a better interest rate and/or mortgage payment or you’re trying to figure out exactly how much you can charge in rental fees for the property, an appraisal is a must. Even if you’re already renting the property to tenants and you aren’t looking at refinancing, though, if you haven’t gotten your property appraised, you should. It’s an important part of getting an accurate look at your investment portfolio and Of course, there’s just one problem with getting a rental property appraisal – it’s not an exact science. In fact, it’s based far more on the opinion of the appraiser than most landlords would like, and it can feel very much like you’re putting your portfolio, your hopes of refinancing, and/or your property’s profitability in the hands of someone who’s just going to say, “This property is worth $15,000 less than you estimated. Have a nice day.”

Fortunately, though, if you know what appraisers look for, you can make the right improvements to the home to get the best rental property appraisal possible.

What Appraisers Look For

For the most part, your appraiser is going to be interested in the structure of the house and the size and quality of the property. They’re going to inspect the roof, the foundation, the quality of construction materials, and functional home systems. They’ll also be interested in the size of the house and the size of the property. Issues like cracks, holes, and leaks will affect your appraisal negatively, and you’ll want to ensure that your home is up to code, as well.

What Appraisers Don’t Care About

You may think that the tool shed in the backyard is a plus for your property, but it won’t actually affect your appraisal, as it’s a temporary structure. Your above ground pool won’t help your appraisal, either, but an in-ground pool or a permanent sprinkler system will improve your appraisal (if they’re functional and maintained).

Furthermore, your appraiser is not going to spend a lot of time looking at your interior design choices. They won’t care whether there’s clutter in the kitchen or you’ve put in a lot of work creating a whole new decorating scheme. However, they will care about your HVAC system, fireplace, home security system, doors and windows, and smoke detectors. Basically, when preparing a rental property for an appraiser, think about function and permanence.

Help Your Appraiser Help You

Getting the best appraisal essentially involves making sure that your property is in good shape and that all of the permanent, functional aspects of the house and property are in good working order. You will want to make sure that the exterior of the house looks its best, and you’ll want to see to it that your appraiser can easily get to all of the things that he or she needs to see to properly evaluate the house and property.

Follow this advice and supply any remodeling documents you have, as well as documentation on your appliances and upgrades, as well, and you’ll be in good shape to get the best appraisal for your rental property.

No Comments

Your Personal Guide to Choosing the Finest Medical Properties (2019 Update)

As you no doubt already know, medical real estate is one of the most lucrative sectors in real estate investment right now. Thanks to the Affordable Care Act, medical offices and other facilities are in incredibly high demand all over Dallas and the rest of the United States, as well. With millions of Americans getting health insurance, sometimes for the first time in their lives, people are eager to seek medical attention and improve their health. As a result, physicians are overbooked, and there’s plenty of room in the market for new practices. In fact, there’s a huge demand for them.

So, with all of that in mind, how do you choose the finest medical properties to ensure the best returns on your investment? If you follow a few simple tips, you’ll be able to spot the best deals and the best properties to diversify your portfolio and grow your wealth while you improve your area with more of the medical properties that local patients want and need.

Research Local Demographics

First of all, what is the average age of the population in the area where you want to invest? And what’s the median age? What percentage of the population are single, married, young, old, male, and female? The more you know about the demographics of the people who live in your area, the better you’ll be able to understand their medical needs.

For example, if you are investing in a location that’s mostly made up of young couples and families just starting out, your best medical real estate investments will likely be OB/GYNs, pediatricians, and family practices. On the other hand, if your area is primarily made up of retirees and senior citizens, a senior care center, nursing home, or senior living community might be the better investment. If you know where you want to invest, you can do just a bit of research to find out what kinds of medical properties are in demand and which ones will make the best investment opportunities.

Look for Positive NOIs and Cash Flow

Medical properties fall under the heading of commercial real estate, and the net operating income (NOI) of any commercial property is the difference between the income on the property from rent and the cost to maintain and manage the property, not including income tax or loans. This number needs to be positive if you want to make a profit when you decide to sell.

While your NOI determines the value of the property and will help you understand its resale value, you should also take into account any mortgage or loan payments, as well as your income and property taxes. Does the rental income from the property more than make up for these costs? If not, you’re not looking at a profitable medical property, and you should consider a different location, type of practice, and/or developer.

Consider Market Trends in the Surrounding Area

While commercial properties’ market values are based on their potential rental income rather than the value of comparable properties in the area (as is the case with residential properties), you should still look at the market trends and property values in the surrounding area. Essentially, you want to know if you’re investing in a medical property in a growing neighborhood or a community that’s slowly dying.

To determine this, look at the property values for both commercial and residential properties in the area over the last 18 months. What kind of trend do you see? If the trend is steady with a slight tendency toward positive growth, you’re looking at a good area to invest in. If it’s been steadily declining, you should move on to your next investment opportunity. If it has been rapidly increasing, you may want to be wary. This could be a sign that the area is growing and thriving, but that rapid rise in property values could either level off or crash. Be wary of volatile markets.

With this information, you should have everything you need to find the finest medical properties for the best real estate investments for your portfolio.

1 Comment

Why Do Apartments Attract More and More Visitors? (2019 Update)

It’s no secret that Dallas has an incredibly popular rental market, especially for apartments and condos. This is both good and bad news for property owners and real estate investors. On the one hand, purchasing turnkey rental properties has never been more lucrative than it is right now. With corporate businesses booming all over Dallas, bringing in more new talent every day, the demand for rental apartments is astronomical, which means you’re almost guaranteed to make a profit on any turnkey rental apartment you purchase.

At the same time, apartments can involve a great deal of maintenance and can undergo a lot of wear and tear from one tenant to the next. This is made even worse when apartments seem to attract more and more visitors. With people coming and going all the time, floors get more traffic and appliances and fixtures get more use and abuse. So why are there so many visitors in these apartments, and can you control the flow of people in and out of your property?

Weekend Sublets Can Be a Problem

According to the New York Post, one landlord is suing his tenant for subletting her apartment on AirBnB for $190 per night. While subletting might seem harmless, when you have a turnkey property, it can turn into a nightmare. Not only does it increase foot traffic through the property, but it can also result in major property damage.

Time Magazine reported on a house that was completely trashed after a single weekend. That’s bad enough if you are renting your own home out for a period of a few days at a time, but what do you do if your tenants sublet their apartment and come back to find serious damage and toxic waste? Fortunately, your rental agreement should have a clause regarding sublets, and you should be protected against this kind of problem. If you have any questions about the risk of tenants subletting your property to unvetted guests, talk with your property management company to ensure that you are covered and that your risk is minimized.

More Visitors Can Mean New Tenants and Investment Opportunities

Now, obviously not all AirBnB and subletting guests are the kinds of people who will ruin a property in just a few days. In fact, many of these people are actually visiting Dallas because they may want to move here for work or school. If we look at the root of the issue, apartments are attracting more and more visitors because Dallas has a lot of great job opportunities, great quality of life, and the cost of living is not astronomical, either.

So what does that mean for you as a real estate investor? How can you improve your investment portfolio while decreasing your risks of property damage and liability? If you are concerned about a situation like the one that Time reported, you may want to opt to invest in a real estate investment trust (REIT) instead of purchasing a single unit in a commercial residential building.

This solution comes with a number of potential benefits. If you purchase equity in a building or complex, you will not be dependent on a single tenant to continue to see monthly or quarterly income. Instead, you will own a share of the property’s equity, which means you will get a percentage of the profits on the property on a regular basis, usually paid quarterly.

If you invest in an REIT, you will not be responsible for finding tenants for your property, and all property management responsibilities will be taken care of for you. This kind of property is much less likely to have problems with subletting, and if the complex has 100 units, a few vacant units will not hurt your profits in any significant way. Thus, if something does happen due to subletting or abusive visitors putting wear and tear on the unit, you will not have to worry about losing a lot of capital.

All in all, increased numbers of visitors to Dallas apartments should be a good thing for real estate investors because those numbers represent a continued high demand for rental properties in the area.

No Comments

How to Choose Turnkey Properties in Dallas? (2019 Update)

As an investor, you have more important things to do with your time than finding new tenants, chasing after late rent payments, fixing toilets, and replacing refrigerators. For you, the point of purchasing a rental property (whether residential or commercial) is to collect passive income and diversify your portfolio while you look for more investment opportunities. This is why turnkey properties in Dallas make the most sense.

However, if you want to make the most income on any real estate investment, you need to know how to find the best properties. Instead of stumbling blindly through the Dallas investment real estate market, follow these simple steps and you’ll find the best properties for your portfolio to give you long-term appreciation while offering short-term income.

Identify Your Market

First of all, do you know what kind of property you want to invest in? In the Dallas area, residential rental real estate is incredibly hot right now and shows no sign of dipping any time soon. Thus, a lot of savvy investors are purchasing turnkey apartments and houses that come with property management and tenants. While you’ll pay a bit of a premium for properties that are not only ready to rent but also come with tenant acquisition and property management, you will also have no work to do to begin collecting monthly income immediately.

On the other end of the turnkey spectrum, Dallas has a huge demand for medical real estate right now, as well. Investing in a doctor’s office, urgent care facility, or senior home could be very lucrative and a great way to diversify your investment portfolio. With this kind of investment, though, you will likely be purchasing stock in an REIT or investing in a real estate mutual fund, and you will actually own equity shares in the property, rather than actually taking ownership of the property itself.

If you want to outright own a piece of property that makes you a profit as soon as you purchase it, you’ll likely be in the market for a house or condo property. Whichever way you go, though, be sure to do your research and identify your market and what kind of property you’re interested in for your portfolio.

Research the Property Management Firm

When you start looking at turnkey properties in Dallas, remember that you are not just buying the house and the land it sits on. You’re also paying a premium for property management. So, in addition to looking at the actual property to ensure that it’s what you want, you also need to look into the property management company you’ll be partnering with.

Before you agree to anything, first find out a few key things about them. You’ll want to know how many properties they currently manage, how many people they have on staff, and how many properties their current corporate infrastructure will handle. Then you’ll want to know how they intend to grow and continue to provide top-notch management service for their existing properties.

You’ll also want to ask about tenant acquisition, average lease lengths, average tenant turnover rate, and what they do to retain tenants. Whenever possible, ask for references and follow up on them. The more you know about your property management company, the more you’ll know about what you can expect when you purchase your turnkey property.

Do the Math

Finally, before you buy the property, do a little bit of simple arithmetic. Take the amount you’ll receive in monthly income on the turnkey property and subtract your mortgage, property management costs, and property taxes from that. If the result isn’t a positive number, then move on to the next property. If it looks like a good number that you can work with to grow your wealth and increase your future investment opportunities, then it may be time to sign on the dotted line.

Now you have a guide to finding and choosing turnkey properties in Dallas. With this information, you should be able to make the best choice for your investment portfolio.

No Comments

3 Simple Reasons You Should Attend More Real Estate Investment Seminars (2019 Update)

Whether you are a novice or seasoned real estate investor, if you want to diversify and stabilize your investment portfolio while growing your wealth now and into your retirement, you can benefit from attending more real estate investment seminars. A quality seminar holds massive potential for even the most experienced and expert investors, including opportunities for further education, more networking, and exclusive investment opportunities you would not otherwise be privy to.

However, a lot of investors will avoid these events, believing that they are a waste of time. In all honesty, most investors who are “too busy” or “too skeptical” of real estate investment seminars are often afraid that they will be wasting their time or money, or they are anxious about putting themselves out there in front of real estate professionals and experts. If you fall into one of these categories, you are certainly not alone, but you should know exactly what you can get out of attending more of these seminars before you write them off entirely.

Improve Your Real Estate Investment Education

First of all, every investor can improve their real estate investment education. Whether you have been investing in commercial and residential real estate for decades or you are just beginning to dip your toes into the world of real estate investment, you have most definitely not learned everything there is to know.

Real estate investment seminar organizers work hard to attract speakers who have been successfully working in this field for some time. However, they don’t just invite the “old guard” to speak, either. Many speakers you’ll find at these seminars are people who know how to navigate the waters of today’s millennial market. They understand that tenants, corporations, businesses, and investment opportunities have changed over the years and that investors have to adapt to these changes.

You could read dozens of books on real estate investment, but you will not get the same perspective from them that you’ll get from successful speakers who understand the way today’s markets work and how to gain more passive income from your investments today. So, whether you are new to the real estate investing game or you’ve been around for years, you can always learn something new when you come to an investing seminar.

Networking Is Essential to Real Estate Success

In addition to learning from the speakers at real estate investment seminars, you can also get a great deal of value from getting to know other attendees. These events attract investors of all experience levels in all types of commercial and residential investment real estate. The real estate world is built on relationships, and attending one of these seminars can open up a lot of opportunities for creating and building those relationships.

By networking with other investors, as well as real estate and finance experts, you can get to know the markets in your area much better. Not only that, but after the seminar is finished, if you follow up and build on the conversations you had with these people, you will build recognition in the investment community and show that you are a real player. Then other serious players in your area will be more likely to want to partner with you on deals in the future.

Exclusive Investment Opportunities

Real estate investment seminars often offer exclusive investment opportunities, as well. You will by no means be obligated to put your capital into any investment opportunity available to you through the seminar, but having access to this kind of investment can be very lucrative.

Be aware that some real estate seminars are designed solely to help the speakers make money and sell books. However, you can find quality seminars that will give you good information and great opportunities to network with other investors, as well as opportunities to join trusts, mutual funds, or real estate investment clubs to get more out of your investments.

No Comments

Different Investment Opportunities in Medical Real Estate (2019 Update)

While both commercial and residential real estate markets all over the United States have shown massive progress and improvements over the last few years, one type of real estate stands out. Since the enactment of the Affordable Care Act, more people in the US have health insurance than ever before, which means that more patients are seeking primary and specialist care than in years past.

As a result, there’s a much higher demand for medical offices and facilities than in years past. However, medical real estate does not simply represent a single opportunity for investors. In fact, if you are interested in capitalizing on one of the fastest growing and most lucrative sectors in real estate, you have a few different options open to you.

Medical REITs

Most medical and healthcare facilities and offices are large enough investments that individual investors cannot afford them on their own. However, they make brilliant investment opportunities for investors who pool their capital. Thus, more and more REITs (real estate investment trusts) are focusing on medical and healthcare properties.

Depending on your area and the type of investment you want to make, you may want to look into different types of REITs in your area. Some focus specifically on primary care and urgent care facilities, while others focus on building and developing hospitals. Still others focus on senior care and senior communities. Consider the demographics of your community and whether or not your area would be a good hub for a large hospital, more primary care offices, or senior centers. Then you can determine which of these types of REITs will be the most advantageous for you.

Crowdfunded Medical Real Estate

Of course, you don’t have to invest in an REIT. Instead, if you are an accredited investor, you can join a real estate crowdfunding site and look into investing in specific medical real estate developments. When you go this route, you will need to do your own research and determine whether or not a proposed project for funding is likely to succeed or not.

Crowdfunded medical real estate has the advantage that you can choose to invest as much or as little in any one project as you like. It also allows you complete control over which properties you invest in, which is a luxury you won’t get when you invest in an REIT.

However, you should be aware that there are some disadvantages that come with real estate crowdfunding, as well. For example, real estate crowdfunding is still a very new style of enterprise. As of now, most established and highly successful developers have the connections and means to get funding for their projects without resorting to crowdfunding.

Thus, when you pledge funds to back a project, you will likely have to assess the level of risk associated with the developer behind the project. Look into their previous projects and see what kind of track record they have with medical real estate. This style of funding is gaining more traction, and some larger developers are moving toward at least partially funding their medical real estate projects with crowdfunding sites.

Basically, when deciding to go with an REIT or real estate crowdfunding, you’ll have to identify and assess your risk levels. Does your REIT have an acceptable track record with funding profitable developments? Are you comfortable with putting your investment capital in their hands in exchange for stock in the trust? On the other hand, do you trust your own research to make the best decisions on crowdfunded real estate projects? Does the ability to invest in multiple properties of your choosing outweigh the risks of backing potentially untested developers?

With so many different investment opportunities in medical real estate, the major question for most investors is which style of investing to choose. Whether you go with a healthcare REIT or crowdfunded medical real estate, you have the opportunity to see significant returns on your investment in relatively little time, thanks to the ongoing high demand for medical properties in the US.

No Comments

6 Factors to Keep in Mind Before Investing in an Income Property in Dallas (2019 Update)

Real estate is one of the fastest growing investment sectors in Dallas today. With booming industry in the Dallas/Fort Worth area, the rental market is in high demand, and there are numerous investment opportunities for individuals and investment groups to see great returns on income properties. However, before you dive in, read these six factors to keep in mind before investing in an income property in Dallas.

1. Know Your Budget

First and foremost, the key to operating at an acceptable risk level is to only invest money that you are willing to lose. With the incredible growth rate in the real estate sector in Dallas, you are far more likely to win than lose, but every investment you ever make will come with the risk of loss. A savvy investor will always operate within an acceptable risk level.

2. Have an Exit Strategy

Next, a savvy investor will have a contingency plan in case the investment goes sour. For investors flipping houses, they will usually choose to fix and hold a property rather than flip it immediately, or they may sell to a real estate wholesaler to minimize loss and move on to the next investment. Whatever style of investment you are considering, you should first work out your exit strategies to ensure that you will be able to continue to grow your wealth, even if the income property you are investing in right now is a failure.

3. Quality Property Management Is Key

If you are purchasing investment properties to increase your passive income, you will more than likely be buying rental real estate. If this is the case, you will not want to act as landlord for these properties. For group and trust investments this is not even an option, but even for individual investments it is not the best idea. Simply put, attempting to DIY your property management responsibilities is a huge time sink and will not garner you the profits you want.

For that reason, it is absolutely essential to find a good property management firm to handle your real estate marketing, tenant acquisition, maintenance, repairs, bookkeeping, etc. Finding a good property management firm to take care of all of this for you will ensure that you get more out of your income properties.

4. Know the Market Where You’re Investing

Of course, if you are not well acquainted with the real estate market where you’re purchasing your income property, it may not matter whether you have a decent property management firm on your side or not. Understanding and gaining familiarity with the market where you’re purchasing property is of the utmost importance when choosing investment real estate. If you perform your due diligence and research the market’s activity over the past four, six, twelve, and eighteen months, you will get a good idea of its current trends, its history, and what it is most likely to do in the next few years and months.

5. Look for Catalysts in the Area

Understanding the movement of the market isn’t the only factor in getting to know the area where you’re making your purchase, though. You should also familiarize yourself with the physical layout of the area and what’s going on there. Look for signs and catalysts of growth, including new schools, grocery stores, parks, and other attractive amenities. These are all signs that your area is in a growth cycle and will continue to show a favorable market in the future.

6. Don’t Buy for Appreciation

Finally, when you choose your income property, do not buy it for its appreciation potential. This should only be a secondary concern, as it is not guaranteed. Instead, buy your property based on its current value and its immediate earning potential, and you’ll get a lot more of your investment.

Consider these six factors to keep in mind before investing in an income property in Dallas, and you will have the tools you need to make the best decision for your portfolio.

No Comments

5 Mistakes That Everyone Makes While Investing in a Property (2019 Update)

Everyone makes mistakes. Whether you are just beginning to build your real estate investment portfolio or you’re diversifying with more commercial properties to grow your wealth, you are not immune to the top five mistakes that everyone makes while investing in a property. If you can avoid these mistakes, you will significantly reduce your risk level on any investment, and you will greatly increase your chances of seeing profitable and fast ROIs.

1. Failure to Research the Market

First of all, whether you are investing in an REIT (real estate investment trust), using a real estate crowdfunding site, or joining an investment club, you should first do your own due diligence before you put any money in.

What kind of due diligence should you perform on a real estate investment? First, you’ll want to thoroughly research the market in the area over at least the past eighteen months. Check out vacancy rates for both residential and commercial buildings near your property’s site. Then you should look at other developments in the area, as well. Is there a positive catalyst (such as a new school, park, shopping center, etc.) nearby that will bring in more residents and businesses? Would your building and your tenants act as that catalyst?

If you know the area, its market trends, and what’s going on with other developments near yours, you will have a good idea of whether you are buying in a growing or dying market.

2. Failing to Develop an Exit Strategy

If you are purchasing shares in an REIT, do you know exactly what value your shares can drop to before you need to sell them to recoup your losses? If one of your real estate crowdfunding projects fails to launch, can the others support it? Can you afford to lose your investment entirely if none of your projects succeed?

With an exit strategy, you will not be banking on best-case scenarios. You’ll know with confidence that should Murphy’s Law rear its ugly head, you will not be in major trouble and your investment portfolio will survive.

3. Basing Investments on the Promise of Appreciation

Whether you’re Investing in Commercial or residential real estate, you should never buy an income property based on the promise that it will one day appreciate in value. While you wait on appreciation, you’ll lose money on property costs. However, if you buy a property based on its current earning capabilities, it will honestly not matter at all whether or not the building appreciates over time. Your monthly or quarterly cash flow from the property will far outstrip any potential appreciation over the long term. That’s why savvy investors buy income properties for their current value and don’t care at all about appreciation.

4. Attempting to Invest Without Expert Advice

No matter how much research you do on your market and the area around your investment property, you will never have the same perspective that a true real estate investing expert has. Without expert advice on which investments are best for your portfolio and which ones are more likely to do nothing for you or hurt your net worth, you are likely to make a lot of bad decisions concerning your income properties.

With a good real estate investment firm on your side, you’ll have access to all of the financial and real estate advice you need to make the best decisions for your portfolio.

5. Trying to Save Money With a DIY Property

Finally, if you are purchasing a property individually, you might be tempted to try to be your own property manager to save some money. Do not do this. The day-to-day expenses and time responsibilities of managing an investment property will catch up with you, and you will not have the time or energy to continue to invest in more properties and create more income streams for yourself. Turnkey properties may come with monthly fees, but the time and freedom you get with them more than make up for those fees.

Avoid these five mistakes that everyone makes while investing in a property, and you will love the results for your portfolio.