Posts filed under “Rules”

10 Biggest Mistakes of Novice Real Estate Investors

I like to use Sundays to post other perspectives and "how tos" on Investing. Today’s involves a slight twist: Its on Real Estate investing.

Pat Curry observes that "Real estate has become the tech stocks of the 2000s, the darling investment that everyone seems to think will be their ticket to easy wealth." He put together a terrific list of things that novices RE investors best be aware of. Here’s an excerpt, but you should see the list in its entirety:

"If you’re looking for rental income — and most investors are, according to the NAR — buying a single-family house may be their first mistake. All it takes is for a property to sit vacant for a couple of months — or a tenant to run out on the lease — to put a new real estate investor in a financial bind. Far better to buy multifamily units, such as duplexes.

That way, you can live on one side and have the rent from the other side pay your mortgage. Or, rent out both sides and give yourself some breathing room in case one tenant moves in the middle of the night without paying his rent."

Here is Pat’s are 10 common mistakes made by new real estate investors; Many of these will look all too familiar to equity investors:

1. Falling in love with the property.

2. Not performing your due diligence.

3. Forgetting the rule of home improvements.

4. Thinking you’ll get those low mortgage rates you see on TV.

5. Not pre-screening tenants.

6. Breaking your own rules.

7. Investing long-distance.

8. Paying too much for the property.

9. Not studying the competition.

10. Being underinsured.

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Source:
10 biggest mistakes of novice investors
Pat Curry
Bankrate.com, Thursday August 4, 6:00 am ET
http://biz.yahoo.com/brn/050804/16104.html

Category: Investing, Real Estate, Rules

Apprenticed Investor: The Zen of Trading

Category: Investing, Psychology, Rules, Trading

John Murphy’s Ten Laws of Technical Trading

StockCharts.com’s Chief Technical Analyst, John Murphy, has created another set of trading rules:   ”Ten Laws of Technical Trading:” “Which way is the market moving? How far up or down will it go? And when will it go the other way? These are the basic concerns of the technical analyst. Behind the charts and graphs and…Read More

Category: Rules, Technical Analysis, Trading

12 Rules of Investing

Category: Investing, Rules

(Why) You Suck at Investing

USA Today had an interesting article this past week (it happens). The discussion was on the fact that Most Americans no good at investing. A more accurate title would have been "Humans not good at investing." There’s a very specific reason for this; It is something I am in the middle of writing up, and…Read More

Category: Apprenticed Investor, Investing, Psychology, Rules

Find Your Trading Edge

Category: Investing, Rules

Want to Be a Trader?

Category: Investing, Markets, Rules

Exit Strategies

Category: Investing, Rules

The Skeptic’s Guide to Stock Tips

Category: Apprenticed Investor, Investing, Markets, Psychology, Rules, Trading