Five Mistakes Made in Real Estate Investing

Real estate investing can be a rewarding profession. It has been proven that wealth can be built with real estate investing. However, it has also been seen when many investors have lost their pants with real estate investing. Many of the loses can be minimized by following some basic procedures.

Here I share with you five mistakes commonly made by those that have lost in the process of real estate riches:

1. Lack of planning. This is a typical mistake made by novices. Many times investors purchase a property because "it seems like a good deal". I know many courses will sell you the idea that you do not have to think to become a real estate investor. However, I do not agree. Real estate investing like any other profitable business, requires planning. Instead of buying for the heck of buying and then developing a strategy, the investor should focus on developing a plan and gearing their purchases on the strategy developed. This will ensure that good properties matches the strategies developed.

2. Get Rich Mentality. Again many real estate investment courses will sell you the idea that you will get rich quick with real estate. I understand them, it would be hard to convience someone to buy a course where the title is "With dedication and proper planning you will get rich". You mean I have to actually work and think? Yeap. The get rich quick on real estate is only a myth and the reality is that the ones getting rich quick are the ones selling the courses.

3. Doing it alone. To become successful as a real estate investor you need to build a team of professionals. You need a power team that will assist you in the successful completion of your transactions. For example, you should consider having in your team a real estate agent, an appraiser, a home inspector, a closing attorney and a lender. Other members of your team could include insurance agent, a real estate tax accountant or attorney, and a bird dog.

4. Overpaying for a property. This is one of the reasons many real estate investors fail in this industry. You remember the old saying "You make your money when you buy, not when you sell", well it is true for real estate investing. Paying too much and locking up all the funds in the erred property deal will leave you with no money to redeem yourself.

5. Not doing your homework. This goes along with the planning mentioned above. However here is more specifically about the studying the market where you are planning to invest. Learn the basics of the market where you are planing to venture. Understand the dynamics in the area, demands, economics, etc.

By avoiding these mistakes, you will increase the chances of improving your experience in real estate investing. Like any other business, real estate investing requires preparation and dedication. I hope you find this information useful. If you have any other suggestions or comments I want to hear from you.