Top 3 mistakes made by real estate investors

Real estate investment is perhaps one of the most lucrative forms of investment today. Especially on the Costa del Sol and Torremolinos, because the renting out possibillities are great. But it is also equally risk bound especially when one is not well versed with the trends and nuances of the real estate market.

Knowing the most common mistakes made by real estate investors will help one steer away from making similar mistakes and ensures good return on investment.

Bankrate.com has put together the top 10 mistakes after speaking to established, full-time real estate investors and other professionals involved in real estate investment such as bankers.

1. Not planning ahead
Lack of a proper plan is the biggest mistake made by novice investors. Finding a house after forming a proper investment strategy is the right way instead of looking for a house to fit the plan. Many make the mistake of buying a house because it seems to be a good deal and then try to see how they can fit it into their plan.

Instead of buying a house and thinking one can plan in due course, investors should concentrate on the numbers and try to make offers on multiple properties. This will ensure a good property that not only matches their investment model but also works out well with the numbers they had planned for.

2. Believing you can make money quickly
The second major mistake that real estate investors make is to think it is very easy to get rich in real estate. This is only a myth. The reality is that investing in real estate is a long-term project.

3. Doing it single-handedly
To become a successful real estate investor, one needs to build a team of professionals to assist in deals. This would ideally include a real estate agent, an appraiser, a home inspector, a closing attorney and a lender.

So before buying your spanish real estate in Torremolinos at the Costa del Sol....have a look first at the ten most common made mistakes at Bankrate.com