If you have just started investing in property, you might want to start and buy your first property. Before you begin, learn from the mistakes made by many experienced investors in the beginning and avoid making the same mistakes yourself. When it comes to property investment, there are a number of things that should be avoided.
1. Avoid exaggerating how much you can make on your transaction. You want to make sure you can buy property so that profits are built. Many investors want to start so badly that they buy property that makes them too little room to make money.
The same applies to property investments in New York so when you are investing in New York property make sure you do not buy such kind of property that ends up in loss. If you end up having to sell the property for a reason, will you still get a good refund?
2. Avoid investing in pre-foreclosure mortgages. This field is very competitive, and in today's market, not much equity is found there. Owners in foreclosure mortgages are unlikely to get – they are used to avoiding creditors – and if you end up buying one of their properties, you then have to deal with carrying a current mortgage (and maybe tax) before you can do anything with it.
3. Avoid sales tax. Once again, competition is the main problem here. Good property usually bids close to retail value (by people who violate Rule # 1 above), and there isn't much money to be made here. You must also come with all the cash needed in advance, on sales tax, and you cannot inspect the property beforehand.