Friday, September 17, 2010

Samer Kuraishi guides through 7 Beginner Real Estate Investing Mistakes to Avoid

There are a lot of mistakes that can be made in Real Estate. In fact, many savvy investors still make mistakes or have overcome huge mistakes in their investing careers. According to Samer Kuraishi, the keys are to recognize, avoid, learn and move forward from these potential pitfalls.

Here Samer kuraishi provides 7 Key Mistakes Beginner Real Estate Investors Make.

1. Speculate – Most new investors follow the herd, listen to the media and buy with the hope the property will appreciate. This is as much of a gamble as hand picking stocks or going to the Casino. Come to a trusted real estate agent like Samer Kuraishi or to company like A-K Real Estate to assist you in your investment.

2. Buy at Market Value – Beginners almost always buy property straight off the MLS for market value. You can find deals in any market and there are always distressed properties. At A-K Real Estate, Samer Kuraishi,  will help you hand pick from distressed properties at 70% or less of market value.

3. Fall in love with a deal and get your emotions involved – Many beginners are guilty of this one. Their first few deals they spend minimal time finding a deal. As soon as a prospect is located, they fall in love and do anything to get that property. Emotions drive the decision, instead of making an informed business decision. According to Samer Kuraishi, the key is to get as many prospects that fit the criteria into the pipeline, and get advice from our seasoned agents on the best properties that fit your needs.

4. Put too much down or too much of your own money – Samer Kuraishi believes that, real estate is an OPM or Other People’s Money industry. You should minimize how much of your own money is in a deal. And always make sure you have plenty of reserves to handle any not so pleasant surprises.

5. Only have one exit strategy – To minimize risk, it is imperative to have multiple exit strategies. If you cannot flip a property you can quickly end up upside down, behind in payments and lose the property and your credit. Instead Samer Kuraishi suggests to buy below market properties that cash flow. That way you can use A-K Financial to assist you.  Our Richard Balles is the expert financial services and will help you in selling retail, wholesale, lease options, seller finance, refinance, even rent and hold.

6. Buy in Warzones – It is wish to buy property at a deep discount. In today’s market you can find huge discounts in many areas with the glut of foreclosures. We will do the thorough due diligence. Buying a property for 20K worth 80K sounds like a slam dunk, but not if the property is vandalized multiple times during repairs, surrounded by 20 other foreclosed properties and there is next to zero interest from renters or buyers due to the location in or near a warzone. Make sure there is strong demand from renters and/or ownership in the area.

7. Do not consult an expert or build a team – Many people are do-it-yourselfers and cannot fathom the idea of another person giving them advice or handling tasks. At A-K Real estate, Samer Kuraishi has a team of specialists and expert professionals willing to give you advice that could significantly impact your success and experience as a beginner.

Samer Kuraishi at A-K Real Estate suggests 5 Things to Do Before Purchasing Investment Real Estate

At A-K Real Estate, Samer Kuraishi along with Richard Balles,  will help you find great deals; not good deals, but great deals with plenty of equity, cash flow and multiple exit strategies. These types of deals can withstand mistakes, surprises and worst case scenarios such as the recent bust, where home values dropped approximately 40% in some areas and financing became extremely tight.

Here are 5 things as suggested by Samer Kuraishi,  to make sure of before purchasing investment real estate.

1. Purchase at Max 70% LTV – According to Samer Kuraishi, total cost of purchase, fees and any repairs must be a maximum of 70% of the current market value of the property. To do this you must get a lot of deals in your pipeline and cherry pick only the best ones. It is a numbers game. In some areas you can find deals at 50-60% LTV.

2. Rents are 1% of purchase – Samer Kuraishi also suggests that, a property that rents for $1000/mth should be purchased for no more than $100,000, or rents are 1% of purchase. In some areas you can find great cash flow by purchasing where rents are 1.5-3% . If you are interested in purchasing a property to rent,Samer Kuraishi at A-K Real Estate has hundreds of listings that are at your disposal.

3. Have multiple exit strategies – Our Mr. Richard Balles at A-K Financial, our partner company, provides many different options that you can view with a specialist.  With equity, cash flow and flexible financing you can sell at retail, sell to an investor, wholesale, seller finance a sale, lease option, rent and hold, refinance, possibly sell the note, sell the entity holding title to the property, quick claim deed the property to transfer title, etc, etc. Our Mr. Richard Balles will provide you many options to make our deals successful and can withstand worst case scenarios.

4. Do thorough due diligence – Our company lives up to its reputation.  We are known for our extremely thorough due diligence. Inspections, CMAs, multiple rehab bids, etc. No if ands or buts;  due diligence will confirm that you have a great deal.

5. Consult experts – At A-K Real Estate, Samer Kuraishi has mentors, associates, agents, contractors, local experts, all at your convenience.  Feel free to contact us by phone, stop by the office, check out our websites, or send us an email.