The Biggest Real Estate
Investing Mistakes for Beginning Real Estate Investors
One of the first mistakes investors make is not
getting the deal at the right price. They overpay
and they don’t do enough due diligence or homework
on the property. You want to give
yourself the most flexibility to get into the
deal, so that once you have it, you’re not
stuck with it. A lot of people will jump the gun,
they’ll do their research before they actually get
the property under contract, and then they won’t really
do as much after, and by that time, it’s too late.
Once you’ve already purchased the property, you’re
stuck with what you paid for it. So we just make sure that
we get in at the right price, and if it doesn’t work
for us in the beginning, we don’t take it.
The market now, with the re-stabilizing and things, we
don’t have to worry about letting okay deals go. There
are a lot of great deals. So we only have to take the ones
that really work and just let the other ones go.
So number one is just getting into the deal right, and two,
know your exit. Know why you’re getting
in and then work it correctly for whatever you're planning
on doing. If you get in at the right price, you
will have several options for exits.
Another problem that investors face is using the
wrong strategy in the wrong market. Some of that
does come into play if you’re using outdated strategies
that don't apply to the current market, you’re not
going to get the results that you need. For example, if
you’re only focusing on one single strategy, that
strategy won’t work unless the market that you’re
in supports it. One of the strategies we discussed
was wholesaling
which typically requires more equity to get in at a lot
more of a discount so you can sell it to another investor.
If you’re searching for properties where homes are
less than five years old, there’s not going to be
much equity in the most of them. So the fundamentals need
to be there, and if the area you’re working in doesn’t
meet those, your results are not going to be good.
Number three is just trying to do everything yourself.
And I’m guilty, too. There’s things that I’ve
spent too much time trying to do on my own, and then afterwards
realize it was a big waste of my precious time. It’s
a mentality most of have to work through. A lot of people
make the mistake of trying to do it alone, and unfortunately,
if you’re doing it alone no matter what industry it
is, it’s always statistically proven that
you’re going to fail. So we’ve got
to work smarter, not harder. And the only way to do that
is to use the resources of the professionals and experts
around us.
One of the things that we do is build a power
team of experts around us: real estate agents,
mortgage brokers, attorneys, mentors, trainers, etc. Why
figure it out on our own when we don’t have to? Every
professional, whether it’s an agent, attorney, appraiser,
trainer, they make their money through different methods
but their fees are really minimal for what we make as investors,
and so use people around you, use the resources
around you, don’t try and do it on your own.
If you don’t, you’re just going to burn
yourself out.
Another major factor is motivation. What
is your motivation behind doing this? What’s your
ultimate goal? What’s your objective or your dreams?
What’s driving you? We don’t become involved
in real estate just because we like to buy or sell houses.
It’s just a vehicle. So whatever
it is, whether it’s to free up your time, further
aspirations, travel, give to charities, etc, you need
to have some type of bigger drive other than money that’s
going to motivate you. And that applies for anything.
It doesn’t just apply to real estate. Any business,
you’ve got to have that kind of focus. Because once
you come up on roadblocks, you want to make sure that your
motivation is bigger so it doesn’t discourage you
and you keep going. If you do that and take action
(of course with the right
systems), it brings everything together and it
makes it all work.
For our in-depth real estate investing system with all the
specific
strategies, tools, forms, etc. go to:
http://creativerealestatehelp.com/index.php#program
We thoroughly look forward to helping you achieve your
financial goals and aspirations!
To your success,
Matthew Sorensen
CreativeRealEstateHelp.com
http://www.creativerealestatehelp.com
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