5 mistakes to avoid as a real estate investor by scott prephan

5 Mistakes to Avoid as a Real Estate Investor

1. Overpaying for a property.

If you’re turning to real estate investment as a means to generate

wealth, the last thing that you want to do is overpay for your

investment properties. If you’re unsure of the value of your

property or feel that you may have been misquoted, look for a second

opinion on costs and always be vigilant for mistakes in property

analysis.

2. Not doing your homework.

The skill and acumen required to become a knowledgeable real

estate investor takes time to learn, and it’s not the kind of learning you can just pick up as you go. Prior to

making any financial decisions that could drastically impact your

future, educate yourself on the process and ensure that you’re

well-versed in what needs to happen on your end by staying up- to-date with industry happenings.

3. Trying to do it all by yourself.

It’s crucial to build relationships with all of the right people along your way; real estate agents and home inspectors are people you

want to get to know at the beginning to help assist you with

your purchase. Then, as you begin the renovation process, it will be

crucial that you form relationships with people working in

construction, maintenance, and remodeling companies as well as

the plumbers, contractors, roofers, and painters that they provide you

access to.

4. Being unrealistic about your cash flow.

Yes, if you invest in a rental property, you’re going to have cash

flow from rent, but there’s more that goes into it. If you own a rental

property, you’re still responsible for making payments on it even

when the property is vacant. You’re also responsible for all of

the upkeep and maintenance work which can take a lot of your time,

and if you hire a property manager to look after the property, you’re also going to be cutting into your

cash flow.

5. Setting unrealistic money &

personal goals.

Investing in real estate is not going to make you millions of dollars overnight, and if you walk into

investing with the mindset that it will, you’re going to find yourself in a world of financial trouble. If you

want an investment that’s going tomake you money without much

effort on your part, you may want to consider another avenue.

Investing in real estate requires a lot of work on the part of the

individual as well as an adequate understanding of industry

knowledge.