Avoid property pain

Dr Lafina Diamandis rounds off her series for doctors investing in properties by describing the pitfalls of property investing – and how to dodge them.

Not doing enough due diligence.

One of the most common mistakes people make when investing in property is not doing enough due diligence.

Even when a professional property sourcer sends me a deal, I still do my own due diligence on the property to investigate whether the deal meets my personal require– ments and to verify that the information about the deal being sold to me is accurate. 

This is a vital part of the process and corners should never be cut. Spending a little more time and money during this part of the process can save you thousands compared to making a bad investment decision, which could cost you a lot of money after it’s too late.

TOP TIP: Create a due diligence form or spreadsheet to help you adequately assess every deal that comes under your nose.

Not having finance ready

Many investors overlook the importance of having funds in place for a property purchase or underestimate the time it can take to obtain mortgage finance. 

Although I know several investors who find deals and then go looking for the cash to fund them, I don’t recommend this approach unless you have a network of contacts that can help you secure finance under pressure.