Here are some lessons learned the hard way that may help fellow investors:
- If you are doing a deal with someone else and will be in a Joint Venture/Partnership, who is that person? What is their exact experience and long term results? What is their experitise? What exactly will the roles in the JV/deal be and what happens if they do not do this? What will be expected of you?
- Check and double check the numbers, particularly reserve cash required and vacancy rates. In particular, with low income housing, you have very likely underestimated the reserve cash needed and the vacancy rates you will have.
- Real Estate is not and never was meant to be a ‘get rich quick’ system. If you want/need that – try stocks, startups or options. Often, Real Estate will not cash flow as you expect or theoretically calculate, particularly in the case of single family homes where rents have not kept up with house prices (hence mortgages required) and real estate taxes.
Hope this brief list helps!
