Private investors in the mortgage sector need to be very careful with their investments. They tend to make few critical mistakes that often prove to be very costly. Though many of them learn to avoid these mistakes by experience, it is better if you know about this before you venture into any sort of private investment.

As a private investor investing in mortgages, you should always inspect the property that will be mortgaged. Most investors are only interested in the status and terms of the mortgage. This is a wrong move. A situation may come where you may have to foreclose the house. If you have not physically inspected the house before you invested your money, then you may not have a clear idea of how much you may get when the house is foreclosed. 

Next, it is important to do a thorough check on the property insurance. If you are investing in a flood prone area see whether the property has proper federal flood insurance. This will safeguard you from expending on repairs due to damages caused by floods or hurricanes. All these checks must be done before closing the transaction.

Private investors who prefer angel investment must also be very careful with their investments. As angel investors bet their money on new and upcoming enterprises, it is important to have proper understanding of the market and the particular industry. And for this a private investor must read market statistics and reports thoroughly. He must venture only after he gains proper intuitive instincts on market dynamics. Following trends without a proper understanding of the market scenario may land an investor in trouble.  

As a private investor it is important to have the right inside perspectives into an investment. It is only then that you can invest without committing major mistakes. To have an inside view, it is very important to carry out a proper study of the emerging scenario. Also you need to interpret developments as you see it. This will hone your skills to predict the future turn of events. Depending on the observation of experts can more often than not prove to be fatal.