1 / 2

8 Types of Hazards Every Real Estate Investor Should Know About

Investment in real estate is undoubtedly an advantageous way to generate income and accumulate wealth. However, real estate investing has a few risks that an investor should be aware of and understand the effective ways to evade so that they can earn a high return on investment (ROI) and enjoy the fruits of their wise decision in the long run. For more information call us at 936-441-2610.

blacklabelcommercial
Download Presentation

8 Types of Hazards Every Real Estate Investor Should Know About

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. 8 Types of Hazards Every Real Estate Investor Should Know About Investment in real estate is undoubtedly an advantageous way to generate income and accumulate wealth. However, real estate investing has a few risks that an investor should be aware of and understand the effective ways to evade so that they can earn a high return on investment (ROI) and enjoy the fruits of their wise decision in the long run. Significant Risks in Real Estate Investing 1. Poor Location - Location is everything when investing in real estate. Do not buy a property, even if it is cheap, in a wrong location that lacks a growing population or a poor job market. 2. Unpredictability – The constantly dynamic economic conditions directly influence the real estate market. Therefore, an investment property's value in real estate is significantly influenced by the state of the economy.

  2. 3. Negative Cash Flow – The amount of profit an investor makes through real estate investing after covering all taxes, costs, mortgage payments, etc., is referred to as cash flow. 4. Vacancy Risks - Purchasing a property isn't a guarantee of immediate success or full occupancy. High vacancy rates in real estate investing are a potential risk that may result in a negative cash flow. 5. Hidden Structural Problems - Unexpected maintenance and repair costs may arise because a home may have concealed structural issues. 6. Delayed Liquidity - A significant impediment of real estate investing is that selling it is neither easy nor quick. Doing so under duress will almost always result in losing money on your investment. If you need cash urgently, it can be a bit of a problem. 7. Foreclosure - Real estate investors risk losing their rental property to foreclosure when they fail to pay their mortgage on time. 8. Depreciation - Depreciation is a significant risk associated with real estate investing; if the value of a rental property declines in the future, the investor will lose money. Avoid the Risks: Get a Commercial Realtor to Make the Best Investment If you plan to buy a property, begin by aligning with a commercial real estate broker to evaluate the risks and potential benefits before investing. Then, benefit from the thriving real estate market in Houston and get Black Label Commercial Group to give you the best insights on investment opportunities to minimize real estate investment risk. (936) 441-2610 WWW.BLACKLABELCOMMERCIAL.COM

More Related