The Seven Deadly Sins Of Real Estate Investing – Czech Lessons

Czech Point 101 July 22, 2014 @ 2:50PM

Brandon Turner wrote a fantastic article for Business Insider outlining the seven worst mistakes that real estate investors make.

Top mistakes Czech real estate investors have made

Wikimedia/Hieronymus Bosch

These mistakes were repeated multiple times by investors through the boom years in Czech Republic.

The most common ones we saw were:

  • #1 Buying Based On Future Value – Many developers in Czech Republic were even pre-selling flats which were not yet built at prices they expected them to be worth in a year when they were completed.

  • #3 Being Unrealistic With the Math – So many investors did not even do the math themselves but trusted real estate brokers calculations whose income came from the sale of the property. Conflict of interest?

  • #6 Over Leveraging Yourself – When fantastic property gains didn’t materialize enabling ‘investors’ to flip the property at a profit, they faced the situation of a negative cash flow situation. Some investors had picked up many of these properties and now face unloading them at a substantial loss.

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