While a good many millionaires will agree that their fortunes were made in real estate, the honest ones will also tell you that they've probably lost a few fortunes in real estate along the way. This is a risky business and every property purchased doesn't always pan out to become a successful investment.
Unfortunately, there are very few one size fits all risks for real estate investing. Over the coming days we will discuss the various types of real estate investment opportunities and risks involved.
Rental Properties
First and foremost is the risk of failing to make a profit. If the property in question cannot achieve an adequate monthly income to cover the expenses of operating the property then it is not a solid investment.
Other risks include the risk of getting bad tenants. This is particularly hard on first time investors. Bad tenants are costly and in some cases destructive (which leads to even greater expense).
Vacancies are another risk for rental properties. These properties are only costing money as they sit empty rather than earning money as they were intended. Short turnovers are in your best interest as are long-term tenants.
Janus Real Estate Group * Heather Anderson * 972-765-3773
