I have prepared this article to address the 3 Deadly Real Estate Investing Mistakes that new investors make and what to do so you don't fall victim! It is SO important to have a reality check to be sure you are not spinning your wheels right into failure.
Deadly Real Estate Investing Mistake #1
1) Buying, buying, buying – I am referring to buying training course after course, bootcamp after bootcamp, eBooks, video training -you name it – the list is endless. Real estate investing gurus are obviously good at selling and newbies are the ideal customer. Now, make no mistake, I am a huge proponent of the right training, at the right time, on the right topic/focused area.
The problem with continually purchasing training is that you are probably experiencing 1 or more of the following things:
The course is too broad – Perhaps it's a course teaching you “How to invest in real estate” as opposed to a specific training focused on wholesaling only, rehabbing only, or short sales only, for example.
One training course may expose you to yet another foreign topic – your training may open your eyes to another area of investing and you then purchase a training on that topic, which creates a vicious buying cycle. Think of the difference between a lighthouse and a laser – a lighthouse spins round and round, not stopping on anything long enough to focus on it and a laser zooms and narrows in on one thing. Which approach do you think is better?
You are not holding yourself accountable – to actually implement something from the training. Again, this can be a direct result of the training being too broad – it may teach you a little about a lot instead of a lot about only a few topics. Even if the training is too broad – pick an area and learn it.
Deadly Real Estate Investing Mistake #2
2) False feeling of progress – Did you purchase a domain for your business? Figured out which marketing tactics you are going to try? Perhaps you've imagined what you would say when you talk to a prospective investor. You might have even shaken some hands at a REIA meeting. The problem with these types of activity is that it can give you a false sense of accomplishment. While these steps are involved with becoming a real estate investor, they are NOT ACTUAL ACTIVITY that puts money in your pocket. Planning and learning are very important activities but they are VERY different than revenue generating activity. You would be better off following 1 lead-generating activity such as putting up bandit signs to get a lead, which will allow you to talk to an actual prospect.
Deadly Real Estate Investing Mistake #3
3) Quitting Your Day Job – Accounting 101 – when expenses exceed revenue, your business can fail. This deadly activity will put extra pressure on your and greatly limit your chance of getting your business off the ground quickly. It's like adding gasoline to the fire.
Do you see how all 3 of these elements are proof you may be spinning in a vicious cycle? They are all related – you keep buying, buying, buying products, you begin to learn some terminology and begin getting a false feeling of progress and that false sense is so strong that it may lead you to quit your day job. DO NOT LET THIS HAPPEN TO YOURSELF.
If you feel like you have you fallen victim to any of these three deadly mistakes, then it is simply time to “reboot” and pick one specific activity that will generate revenue. By doing so, you will have made some genuine progress towards your real estate investing goals, that you can feel good about and build upon.