Avoid these Real Estate Investing Mistakes
Property Investing Mistakes & Tips
The real estate market always has it’s ups and downs. It’s part of the industry. But this volatility is one reason that sparks the interest of so many entrepreneurs looking to make money from the market. Some experts even say the best time to get into the real estate investing business is when things aren’t going right. They say get in, learn the business, and wait until the upturn, which is always right around the corner, and you’ll be a step ahead of the others. Others say, be patient and avoid jumping in when the market is down because it will turn around soon.
Whatever advice you want to take when it comes to getting involved in the real estate investment business, real estate property has become huge business. Many people are getting involved in it as a career option or as a part-time job. But the popularity of the industry has caused an influx of interested parties who jump into the industry without the proper instructions, knowledge or tools. Yes, real estate investing is a huge industry. One can make good money with plenty of opportunities to succeed, but just like any other business opportunity there’s a right and a wrong way to enter the industry.
Listed below are some valuable steps to take to avoid making costly and timely mistakes that many real estate investors make.
Lack of planning
Although it sounds unbelievable that anyone would try to get involved in a business without properly planning or planning as they go along. That spells disaster and it’s one of the biggest mistakes any business person can make. They’ll buy a house and then try to figure out the next step. The plan should come before the house. Not the other way around. Figure out the type of investment and the pros and cons first, then find the house. When you buy your first property you should be ready for the next step and acting on it without much hesitation or refocusing. Too often people look at investing in houses as a transaction - taking it one step at a time - instead of a strategy.
What we mean by this is having a “get rich quick” mindset. Many investors who fail at real estate investing, fail for this reason. They think they’ll get rich instantly with little planning and even less understanding of the business. Many listen to those so-called experts advertising on the TV, radio or online about how much wealth is going to flow your way with little work. They show expensive houses and cars and nice vacations luring people to get involved without a good understanding of the business first and the risks involved. Don’t fall for the deception. Real estate investing can bring in a nice, steady income and some people can make a six-figure income from it, but remember, if it sounds too good to be true, it is.
Going it alone
Some may have that go-getter attitude to the point where they feel they can go it alone. That’s not the best method when it comes to real estate investing. The key to success is having a good support group and building a team of professionals around you. At the least, you need at least a real estate agent, an appraiser, a home inspector, an attorney, and a lender helping you out. That’s part of the benefit of having a professional group like eReal Estate Investors as a source to work with and learn from. Unfortunately, some people try to be all, or most, of these and it just doesn’t work out. Either they will experience severe burnout or become overwhelmed.
A good support team includes the positions mentioned above, including a plumber, electrician, a painter, a roofer, a HVAC contractor, remodeling partner, lawn service, cleaning service, and a maintenance person. Now you can do some of these yourself or you may know people who can perform one or more of these services, but if you try to be a jack-of-all trades in the real estate investing business, you’ll end up not being a good investor, nor will you make any money.
Spending too much on the property
This is a common mistake among new investors and one of the main reasons why investors don’t make any money. And it’s a mistake made when the adequate courses or training has not been taken. Paying too much for a property and not considering the expenses or just paying too much for a property that doesn’t sell in order for you to make a profit is a waste of time and a huge mistake. This is why it’s important to take courses like those offered by eReal Estate Investors to avoid huge costly and time-consuming mistakes like this.
Skipping over training
This is one of extremely important for anyone serious about getting involved in real estate investing. Just like anything else, one needs to be well-informed, trained, and instructed on the ins and outs of the business. If not, failure is highly likely. One of the main reasons why some new real estate investors overlook this crucial step is because they don’t take the business seriously. Some will ignore the foundation and end up with the business caving in on them because they don’t think it necessary to attend a seminar, read a book or take a course beforehand. In other words, they fail to plan accordingly. Just like any new venture, educate yourself completely before jumping in without a lifeline.
Our company wants to see you succeed as a real estate investor. With the right planning and instruction, the opportunities are huge and money is there to be made. However if you don’t invest time in learning everything there is to know, success will be hard to come by. But with the help of eReal Estate Investors we can make your dreams happen with proper training and preparation for a successful real estate investing career. Contact us now and we can help you start out on the right path.
By Erika Cox For e Real Estate Investors LLC