|
Welcome to Articles4today.com
Blog!
Articles » Finance » Real Estate >> View Article
|
 |
|
 |
| 10 Most Common Real Estate Investing Mistakes |
By:
Simon Macharia |
|
A lot of real estate investors fail in their real estate investing business because of common mistakes they can easily avoid.
We cover the most common real estate investing mistakes in this article.
1) Adopting too many business models
Most students who just attended boot camps or seminars do this. Though it is important to learn many real estate investing strategies, you cannot adopt them all at the same time.
You end up losing focus and closing few or no deals. Take one or two business models such as wholesaling, lease options, etc and stick with it.
When you increase your capacity, you can handle more business models.
If you are new to real estate investing, you must pick one business model at a time, polish it, then take more business models with time.
It is impossible to target your advertising when you have too many business models. You are likely to reach nobody with blind marketing when you try to reach everybody.
When the leads start responding, you are likely to lose most of them in the resulting chaos.
2) Having no exit strategy
Before you buy any property, you must know how it will make you money. Unless you do this, you are likely to lose money.
The exit strategy determines how you structure the deal for maximum profit. If you have no exit strategy before you buy, you are likely to adopt the wrong strategy and lose money.
3) Paralysis of analysis
We must be careful, but you can never be 100% careful. Lots of real estate investors spend most of their time analyzing deals in agonizing detail, leaving no time for anything else.
You cannot make all deals work no matter how many strategies you know.
4) Not telling it like it is
This can land in hot soup pretty fast. You must let the seller or buyer know exactly what to expect.
This is especially important when you wholesale properties or take them subject to the existing mortgage.
5) Doing it all yourself
Even though you need to save money, let professionals do their job. Treat real estate investing as a business. You cannot be the closing agent, attorney, contractor, etc.
Work on growing your business - leave the rest to professionals.
6) Doing cheap or bad work
This happens when you try to save money or do it all yourself. A shoddy repair job is unlikely to attract buyers; instead you will be stuck with a property you cannot sell.
7) Being personally attached
Finally you have got this beautiful house, you love - so what? As soon as you get personally attached you end up spending too much money on it and make a loss.
Treat each deal as a dollar figure, and you will be fine.
8) Not networking with other investors
I have met too many real estate investors in trouble as motivated sellers, but who think they know it all. They think teachers are liars - instead they should be out doing deals.
Once you network with other real estate investors, you learn what they do and how they do it. These are foot soldiers who do what you do. You can learn a lot from them.
9) Not having a dream team
Build a team of people who deliver the services you need - title company, attorney, contractors, roofers, plumbers, real estate agents, mortgage brokers, etc. When you need them they are just a phone call away.
10) Not assessing yourself
I like to look through each deal when it's complete to see if I could have done better. This way you can improve with every next deal that you do.
When you avoid past mistakes, your real estate investing business will continue to grow.
In order to run a success real estate investing business, it is necessary to automate most aspects of your business, increase efficiency so you spend less time, money and effort while closing more deals. A lot of real estate investors have achieved this with database driven real estate investing web sites that also automate most tasks of real estate investing. |
|
|
 |
 |
 |
 |
|
|
