Common Mistakes Made By Real Estate Investors
When a person is interested in investing in Florida’s real estate market, it is not uncommon for them to jump the proverbial gun – that is, to fail to properly investigate the market before putting money down – particularly if they have never invested before. The right attorney can help them avoid the common mistakes that new investors in real estate often make in Florida.
Lack Of Local Knowledge. Perhaps the most common misstep made by new investors is to not do their due diligence on the market in which they want to invest. For example, Tampa may have a very different real estate climate than, say, Key West – local ordinances, pricing trends, and environmental concerns are some of the most common issues that appear in real estate deals in these areas. Without accurate local information, an investor may either get taken advantage of or simply fail to find a place to invest.
Lack Of Understanding Florida Jurisprudence. In addition to the daily life questions that may come up when one is investigating the real estate market, it is crucial that an investor understand at least the basics of Florida’s property laws. For example, a landmark Florida case holds that if a seller knows of facts that (1) materially affect the value of the property; (2) are not known to the buyer; and (3) are not readily observable, they must disclose those facts before a sale can be concluded. If an investor is unaware of this requirement, they may wind up with a home full of undisclosed issues, and liability that can take months or years to unwind.
Not Protecting Personal Assets. When a brand new investor seeks to purchase property, they often simply do so, without setting up a limited liability company (LLC) or any other corporate structure to protect their own personal finances. A failure to do this can mean the loss of the investor’s other assets if a foreclosure happens, as without a business structure between one’s personal assets and their corporation, their assets are at risk.
Not Engaging A Real Estate Attorney. It is all too common for people to convince themselves that they have every I dotted and every T crossed, but the complexity of real estate transactions is notorious. The right real estate attorney can help ensure your rights – and finances are protected.
Contact A Tampa Real Estate Attorney
Investing in real estate can be an exciting way to build one’s portfolio, but having the right help on your side can make all the difference. A Tampa real estate attorney from the Seward Law Office can help answer any questions you may have about this process, and will work hard to get you toward the outcome you desire. Call our office today to schedule a consultation.
Source:
law.justia.com/cases/florida/supreme-court/1985/65330-0.html
