Real estate investing has become a popular way to make your fortune in life. I’m sure you’ve seen many infomercials that sell programs to help you get started in this industry. Many of them make it sound very easy, when actually it takes a lot of work and determination. If you are considering getting involved in real estate you really need to do a good amount of research before you even get started.
Here is a list of some common mistakes that beginners have made:
Lack of Action/Procrastination – As with any job there is a lot of responsibility involved in real estate. Some people make the mistake of approaching this industry looking for an easy ride. This is not the case. It may take work, but it will be worthwhile.
Choosing the Wrong Partners – If you decide to use partners be sure that you can work well together. Also, of course, be sure you can trust them. Look for partners who have abilities that compliment yours.
Fear of Failure or Making a Mistake – NO FEAR! Once you’ve learned what you need to know in this business be confident in yourself and abilities. There is an amount of risk involved in this industry, but don’t let fear overtake you and prevent you from being able to take action.
Abusing Weasel Clauses – Weasel clauses are contingencies put in your contract so that you have a way out of the contract. Most banks don’t even consider a contract with a weasel clause included. The name alone tells you why you should stay away from these.
Not Being Accessible – You should make yourself available as much as you can. If buyers and sellers are calling and don’t get a hold of you the first time, they may never call back. This could cause you to lose a deal worth thousands of dollars. A cell phone should be a priority in this business.
Dealing With Unmotivated Sellers – Don’t spend a lot of time examining properties to know if they are worth buying. You should get the feeling that a property is a good investment just from talking to the seller on the phone. Inspection is still important at times.
Lack of Education – This is probably the most common mistake for newcomers. Do not assume that you can just jump in without learning how to do it. Of course, the more you know the better you will do. Also, don’t overdo it and try to learn everything about real estate investing.
These are just a few examples of mistakes you should watch out for if you have decided to join the ranks of real estate investing. This can be a very lucrative career if you have what it takes. You most definitely need to do your research before you make the decision that this is what you want to do. If you are dedicated, determined, and have a good understanding of this business, you will be able to do very well.
