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The Most Costly Mistakes Property Investors Make

The Most Costly Mistakes Property Investors Make

The Most Costly Mistakes Property Investors Make

I am sharing with you some valuable insights on how to avoid the biggest mistakes property investors make. To succeed in property investment depends on many factors.  Real Estate investing is not as complicated as day trading stock options.

Anyone can do it, and anyone can learn it. Like anything, though, there’s a right way and a wrong way to go about it. Like anything, though, there’s a right way and a wrong way to go about it.

Mistakes #1:          Lack of Clarity of the Reason behind Investing

Get something clear from the beginning – do you want to “invest in real estate” or do you want to “speculate” with your money?  So you have one of two choices to make:

  • Invest in real estate: When you are “invest in real estate”, you are you looking to invest for the long term. A long term plan would be to buy a property, collect income from rent and grow the equity in the property over time. Successful and safe real estate investing is buying investments based on today’s numbers and market conditions. However, there is a lot of creative involve here.
  • Speculate: On the other hand, to buy on spec (short for speculation) is a short term strategy. A short term plan would be buying at a good price, doing some improvements, and selling the property in a timely manner for a profit.  It also involves buying raw land now and selling at a later time for capital gains. Thus you are speculating on future conditions that are controlled by someone else or variables beyond your control.

There is nothing wrong with speculating if you can afford to speculate and you are prepared to wait.  The old saying applies: the higher the risk the higher the reward.

It is important that you have a set plan and do not deviate.

Mistakes #2:          Thinking is a Get Rich Quick Scheme

Real estate or property investing is a good long-term investment plan. It’s a measured process. It takes time, energy, education and good planning to get rich investing in real estate. But you can succeed if you avoid the following mistakes property investors make:

  • get an education
  • find successful investors to mentor you
  • locate good solid investment properties
  • team up with experienced partners and professionals and
  • Successfully manage your property. We are good at that.

 Contact us at ANL to manage your property

Think about this for a minute…

According to Forbes, after technology, real estate produced the largest group of self-made Forbes 400 Billionaires.

And many support their wealth through real estate investments.

Mistakes #3:          Not Taking Action

Do not let procrastination or analysis paralysis to prevent you from investing in property. It’s one thing to learn the strategies of how to invest in property, but it’s another to have the courage to implement those strategies.

We all have a fear that holds us back from taking action. This constitutes 98% mistakes property investors to make

Since this is their first time, fear of the unknown sets in and they start to doubt themselves by asking questions like:

  • What if I lose money?
  • What if the documents are not genuine?
  • What if the agent is trying to be smart?
  • What if the land is not free government acquisition?
  • And they ask a lot of other ‘What if ‘ questions

The most effective action for moving past the fear point is to professional assisting you with the process. Having a professional working with you, keeping you on track and constantly assessing the big picture will allow you to move forward fast!



       

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To get started off the ground of your tasks and avoid procrastination, try doing the following:

  • Write down the tasks required that week to move you closer towards your goals.
  • Break down the tasks into bite-sized chunks so that you are not overwhelmed with the process.
  • Do proper due diligence.
  • Do property verification
  • Make a plan that includes a realistic timeline for you to complete those tasks.
  • Commit to making a consistent, daily effort to achieving each of your tasks.

Mistakes #4:               The DIY Factor:

We see people try to do it alone, without building a solid team. It’s really hard to do all things well, and investing in real estate is no different. Unless it’s going to be a full-time job, investors should look to assemble a team that will help them execute on their strategy and bring their expertise.

A key to success is building the right team of professionals. Good relationships with at least a savvy real estate consultant like ANL (at ANL we do an appraiser, a home inspector, property management, accounting and legal consultancy to assist prospective buyers).

See More at 10 Tips For Real Estate Investing

 

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