2013 is shaping up to be an incredibly exciting and profitable year for real estate investing. However, those warming up to scale their volume and flip more houses don’t just need to be armed with the right real estate education and strategy for successfully flipping real estate. They also need to be prepared to confront, adapt to and side step the pitfalls ahead.
Whether getting ready to flip your first house in the New Year or prepping to ramp up deal volume and take real estate investing to a new level there are a variety of factors investors need to keep their eyes on in order to remain successful.
12 threats real estate investors will face over the next 12 months:
- Increased competition from foreign investors, individual home buyers and private equity
- Not anticipating rising operating expenses
- Hurricanes and other natural or manmade disasters
- Failing to innovate to stay ahead of the game
- Rising and falling housing inventory levels in different real estate markets
- Competition from shiny new construction developments
- The temptation to speculate as a new boom period takes hold
- New laws and regulations which require investors to stay on top of real estate education
- Overconfidence and ego which can lead investors to make mistakes
- Failure to have a solid plan
- Allowing overhead to weigh down operations
- Lack of flexibility in business models and investment strategy
While this list may appear lengthy, these are threats which all business owners and entrepreneurs face all the time. However, it is crucial for investors to continue to build on their real estate education and business smarts in order to keep their edge and grow their volume without setting themselves up for disaster later.