Robert Tweed is primarily involved in real estate investing. He has purchased and flipped a ton of properties, including both single-family and multi-family homes. While most of the investments that Mr. Tweed has made have been positive, there have been a few times where he has lost money. Fortunately though, it wasn’t completely a loss, as he gained valuable lessons, and he has been able to take what he has learned and avoid those mistakes down the road. Here are a few of the lessons Mr. Tweed learned when he lost money and how you can avoid making the same mistakes he did.
Robert Tweed Explains a Key Mistake He Made Was Assuming Real Estate Always Increases
Robert Tweed says that one of the biggest mistakes he made when it came to real estate investing was assuming that real estate always increases in value, but never decreases. The real estate market crash was rough on many investors, including Mr. Tweed. Up until that point, real estate had not declined in some time. While it is rare that real estate decreases in value, it can happen, so investors always need to watch the real estate market and look for signs that the market may be cooling or prices may be declining.
Robert Tweed Details How Overspending Leads to Losses
Robert Tweed says another lesson he learned when he lost money on real estate investments was that you can over-improve some properties. While marble floors or quartz countertops may look beautiful, they may not be great choices for starter homes or homes in cheaper neighborhoods. You need to always know comps in the area where you are looking to flip a home and be mindful not to overspend, or you may not get all of your investment back.
Robert Tweed States That Not Knowing Tax Code Also Caused a Loss
Robert Tweed explains that the final lesson he learned is that you need to talk to an accountant or tax professional before you start investing in real estate. A great tax professional or accountant can help you realize what write-offs you may be able to claim and how to defer capital gains. Taking advantage of these types of things can help you save a ton of money on your taxes, which ultimately leaves you with more money in your pocket.
Robert Tweed knows that investing in real estate can be a great investment most of the time, but, if you are not careful, it can lead to losses. Learning from expert real estate investors, such as Mr. Tweed, can help you avoid common mistakes and help you to maximize the gains from your investments.