5 real estate investment mistakes to avoid - lessons from a seasoned investor who owns 41+ properties.

Throughout my 12 years of real estate consultancy service, we have dealt with multiple investors. Mr.V is a seasoned investor and here are the 5 mistakes he avoids:

#1 Mistake: Not defining the property criteria: Mr.V has a strict list of criteria or constrains that enables him to not falter when selecting a property. A few of these conditions are:

A. High street retail only. (A 1,000 footfalls an hour is ideal)

B. No malls, IT parks or MIDC.

C. OC (Occupation Certificate) received property

D. Excellent frontage and a prime location so that the property is always in demand.

E: Less than 20 years old (so that there's lower maintenance)

F: Attached washrooms

G: 750+ Carpet

H: Frontage should be minimum 2% of the carpet area i.e. at least 20 feet frontage for a 1,000 carpet property.

#2 Mistake: Not vetting enough properties: Finding the right property takes time and requires checking out multiple properties before settling on one. Take the time and be patient - ONLY pick properties that match your criterion.

#3 Mistake: Overleveraging the property: Mr.V advocates the use of LRD - Lease Rental Discounting to build multiple assets but warns from over leveraging the asset. Get LRD for up to 60% of the rent and not more. And keep the 20% rent aside for contingencies like looking for a new tenant.

#4 Mistake: Overpaying for the property: The holy grail for any investment is to ensure you get in at the right price. Lot of research and past transactions history would help determine the apt prices for the property. Once you reach a fair price, negotiate!

#5 Mistake: Not hiring the right professional for due diligence: Buying a property entails a lot of legal paperwork and a thorough professional is worth their weight in gold.?