Michael Gwynn is a student of real estate. Although he holds a California Real Estate License and multiple investment properties, Michael is currently immersed in the world of online marketing solutions that connect real estate agents and brokers with home buyers and sellers as the Sales Director at www.HomeGain.com.
In today’s world there are many financial casualties associated with the failing real estate market. There are many homeowners who purchased properties and had little knowledge, experience, or insights into the real estate market. But, there were also a number of real estate investors that could have and should have known better. These good investors had experienced bad outcomes with their property purchases because of the lures, pitfalls, and hazards associated with the world of real estate. These lessons are important to learn because there are many new and experienced investors jumping back into real estate in 2009.
Those who do not learn history are destined to repeat it.
There were several factors and causes for these bad outcomes for these good investors. Some were lured by the gains reported in many publications. Others succumbed to the attractive sirens of the real estate Guru’s.
There were those who did not understand the order of purchasing investment property because they purchase equity growth properties before income properties. Many purchased at the peak of the price points. Other wanted only to stay in their local markets. Miscalculations were made on the costs for holding properties.
The potential issues of holding property were never realistically expected or prepared for by the property purchasers. Methods to truly analyze a real estate market and economy were not effective. Technology and available information was not used to its best potential. Real estate professionals were seen as the enemy and not used appropriately in the transactions. Many did not understand the cycles involved in real estate. Continue reading this post