March 17, 2013 | By admin |
Turn key property solutions have become very popular in recent times. Most investors or people who have not been into property investment for a long time look at turn key property solutions for passive real estate income. Owning a passive rental property is a good way to make some substantial money and also a worthwhile investment choice but like any other investment, there are some mistakes that you should never commit.
There are many ways to succeed with your turn key property and similarly there are many ways to fail as well. Here are the three real estate investment mistakes to avoid.
Spending Money Before You Have It
Turn key property is a lucrative opportunity for all and sundry. There is not much that has to be done and moreover the solutions seem to take care of the nitty-gritty which takes the entire onus off from the shoulders of the investor. People who are not entirely into property investment and only look at passive real estate income often tend to miss out on a very basic rule of financial planning and management. Never spend money before you have it. There would be many aspects that will demand certain expenses but you should not indulge in them before you start to make some handsome passive rental property income.
Taking On Too Much Debt
Debt is unavoidable if you are an investor. You may not be completely overburdened or snowed under debt but most investors would put in only a part of the entire investment from their own pocket. While having loans and debts are acceptable, too much of debt is not advisable. If you keep on piling too much debt then one failure with any one passive rental property at some stage will pull everything down because the debt would be unmanageable.
Placing A Bad Tenant
Never place a bad tenant. This is the golden rule for any passive rental property owner. Making low passive real estate income is not even half as bad as placing a bad tenant. Your entire turn key property investment can become a nightmare with a tenant that doesn’t pay rent on time or incites disputes and takes you to court. There are chances that your passive rental property or turn key property may be vacant and not rented at times but that is better than having a bad tenant.