Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 128 posts · 39 votes
I only wish I had me to learn from when I was starting out.
The booby traps are real when you start investing. A well organized and planned approach avoids so many problems and provides much better returns. But, it's a long list and a way of thinking, that is much too much to write a simple post on.
But, here are a couple to watch out for:
1. One item is that it takes time or direction to learn how to buy properties and be profitable
2. Not all real estate agents know what they are doing. Be picky, you're spending a lot of money so treat it seriously.
3. When you are discussing prices, depending on the market and cycle you may be buying a property that is not likely to grow in value. You don't want to do that.
4. A great "deal" comes along weekly when you're set up correctly. So don't panic if one passes by.
5. Always use escrow, use comps, record the deed and keep great records
The traps I see catch beginners most: trusting the seller's pro forma instead of verifying every number, underestimating rehab by 30-50%, buying with no reserves so the first surprise becomes a crisis, and skipping the inspection to 'save' a few hundred dollars. The Memphis-specific version: buying the ZIP code instead of the street — two blocks can be completely different investments here. And the quietest trap of all is going it alone: no investor-friendly agent, no contractor, no property manager lined up before the offer. Education first, team second, deal third. That's the order that keeps beginners from becoming cautionary tales. What's the one trap you wish someone had warned you about?
Specialist · I give advice - [email protected] - I focus on states where investing is profitable, reasonably safe & secure · Member since 2026 · 128 posts · 39 votes
The traps I see catch beginners most: trusting the seller's pro forma instead of verifying every number, underestimating rehab by 30-50%, buying with no reserves so the first surprise becomes a crisis, and skipping the inspection to 'save' a few hundred dollars. The Memphis-specific version: buying the ZIP code instead of the street — two blocks can be completely different investments here. And the quietest trap of all is going it alone: no investor-friendly agent, no contractor, no property manager lined up before the offer. Education first, team second, deal third. That's the order that keeps beginners from becoming cautionary tales. What's the one trap you wish someone had warned you about?
Good response.
I actually had two surprises
1. Depreciation recapture
2. You need specific paperwork to buy Subject To (SubTo) safely.
I specialize in buying pre-foreclosures using Subject To (SubTo) and Wraps and selling as Lease Options. It may sound a little "out there" but it's just another way to buy real estate, especially in a tough market. What I didn't realize is that it's a different set of paperwork than real estate agents use. And you need to know a few things you learn only through experience or from someone currently doing those techniques. You need to have reserves readily available.