8 Big Mistakes Real Estate Investors Should Avoid
By Dennis Henson
There
are more new investors getting into the real estate market today than
ever before. Most are unaware of the pitfalls that await them at every
turn. But by learning to avoid the killer mistakes your real estate
investing business can become a very profitable endeavor.
Here are eight of the really big mistakes that should be avoided.
#1 Failing to get the right help (and education)
The first three members of your real estate team are the most critical.
Many investors lose thousands of dollars because they don’t want
to spend a few dollars on a good local mentor. A good mentor who really
knows the ropes is not an expense but an asset. A good mentor will save
many times their cost by helping avoid expensive errors. Second is a
good real estate attorney to keep you in line with the law. You will
also need a good CPA to help structure your business. Leave out or
choose the wrong one for any of these and it could cost you dearly.
#2 Impatience
Many intelligent offers are required in order to purchase one good
deal. It takes time and patience to land one of those deals. Be patient
because if you ever get in a hurry you are probably going to make the
next big mistake…
#3 Paying too much
Anyone can purchase real estate anytime. The MLS is full of properties
for sale but your goal should be to buy property at a substantial
discount. It should be a big enough discount to insure that you make a
good return on your time, effort and money.
#4 Believing the TV commercials (and quitting your job)
Does listening to those guys on T.V talk about how easy it is to make a
fortune in real estate with no money, no credit and little or no work
really get your blood flowing If it were really that
easy—everyone would be quitting their jobs to start investing in
real estate. Investing is a great business but to become successful you
need money, credit, and or a great deal of hard work mixed with a good
education. Case flow might not be very good at first so keep your day
job!
#5 Failing to do the proper research
There is a certain amount of research that every investor must do
before placing an offer on a piece of real estate. For
example—the true value of the property must be determined in
advance and you must know what it will cost to hold and get the
property ready to market. It is critical that you know all the
important answers before you ever make an offer on any property.
#6 Not continually searching for money
The life blood in real estate investing is money. Investors must have
access to a lot of money or all their efforts to find good deals will
accomplish very little. It takes three things to start a
fire—oxygen, fuel and ignition. It also takes three things to
build a glowing real estate business. These three things are money,
good deals, and energy. Remove any of these elements and your fire will
go out.
#7 Not bidding consistently
The fuel of real estate investing is good deals and to get a really
good deal you have to make many intelligent offers. In order to grow
the business—consistent bidding is absolutely necessary.
#8 Doing your own rehab
Rehabbing a property yourself—is not the best use of your time.
Successful investors spend their time finding good deals and not
driving nails. Sure—it’s fun to fix something up that was
in a poor condition. The feeling of accomplishment is great but that
feeling can be very expensive. That time could be spent finding other
great deals and finding money to make the deals work. If you do the
rehab yourself you will probably spend more money getting things just
right. It is much cheaper to pay a professional to do the job and keep
busy doing your job which is finding good deals.
For more articles on real estate investor training, visit my website at
httpwww.dennisjhenson.com. Also visit httpwww.turbo-bidder.com for
great real estate investor tools. Thank You, Dennis Henson
If
you would like to take advantage of the market and learn how to invest
in real estate and you are local to the Dallas Fort Worth area, I know
a really great teacher and mentor here in Arlington Texas. Please take
a look at his web site: DennisJHenson.com,
Dennis has a great Mentoring and training program, I know because I am
one of his former students. I learned a lot from his one on one
teaching technique. - Michael Harman 817-457-7572
mchfun.business@gmail.com
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