Four critical “Don’t Dos” in real estate investments.

Over the past two decades of providing fee-only, real estate advisory services since 2002, we’ve observed some critical mistakes that even experienced investors fall into. Many investors keep their underperforming properties as they are unaware of how well their properties are actually performing.

Today, we are highlighting 4 “Don’t Do’s” when it comes to your investment property.

1. Don’t confuse positive cash flow with property performance
While positive cash flow is important, it is only one indicator of a well-performing property. There are other factors besides cash flow such as appreciation, vacancies, depreciation, expenses, etc. that factor into how well a property is performing

2. Don’t neglect routine performance analysis
It’s easy to become complacent with seemingly stable properties. However, failing to conduct regular, thorough analyses can lead to missed opportunities. Many investors that we meet can increase their rental incomes by 35%, 50% by exchanging their underperforming properties.

3. Don’t confuse appreciation with true returns
Property value increases are exciting, but they don’t always translate to actual profits. It’s crucial to consider all factors, including rental income, holding costs, taxes, and potential selling expenses.

4. Don’t let your emotions guide your decisions
Real estate investing requires objectivity. Allowing emotions to influence your choices can lead to poor investment decisions. It’s essential to make your decisions based on analysis and data.

Consult your advisor to ensure that you’re not making any of these mistakes and that your your portfolio is strategically optimized.

Best regards,
The SIFF Investment Services Team

About SIFF

For over 20 years SIFF – Strategic Wealth Advisors Specializing in Real Estate Investments – has provided unbiased, fee-based real estate consulting to disrupt outdated real estate models. We are not realtors or agents. Our role is to educate and empower clients by objectively outlining all options. Our fee-only structure allows us to put client interests first. By taking an unbiased, consultative approach, SIFF aims to help clients prosper through wise real estate investments.

Call: 1 (415) 601-1051 | info@siffinvestment.com