10 Most Common Real Estate Investing Mistakes

A lot of real estate investors fail in their real estate investing business because of common mistakes they can easily avoid.

This article goes through the 10 most common real estate investing mistakes.

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.

The end result is loss of focus, and few to no deals done.   Stick with one or two business models such as wholesaling or lease options and stick with it.

You can handle more when you increase your capacity.

If you are a beginner in real estate investing, then you must select one business model work with it and polish it before you move adopt other models.

One big disadvantage of having too many business models is that your advertising cannot be targeted for better results.   When you try to reach everyone with blind marketing, it is likely you will reach nobody.

And even when the leads come in, unless you have an efficient system in place, you are likely to lose most of those leads in the chaos that result from lack of focus.

2)    Not having an exit strategy
 The first thing to consider before you buy any property is how it will make you money. If you have not done this, you are likely to make a loss no matter how cheap it is.

 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
 As much as we need to be careful, you can never be 100% careful.  Lots of new real estate investors spend too much time analyzing deals in great detail, leaving time for little else.

 not all deals can 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.

If you wholesale properties or take the subject to the existing mortgage, you must explain in detail what they should expect from you.

5)    Doing it all yourself
You do have to save some money, but let professionals do their work.   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 sloppy 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
It's your first deal, and the house is too beautiful, you love it - so what?   The minute you get personally attached, you spend too much money and make a loss.

 Each deal should be treated as just a number - a dollar figure.

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.  Their attitude is, if they are teaching it, shouldn't they be out making money instead of teaching?

 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.   There is a lot to learn 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 go back and check what I could have done better for each deal I do.   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.

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