1. Not Having a Team – Realtor, Attorney's, title company, contractor, insurance agent, etc…
solution: start small – realtor and contractor, through time start building long term – title companies, brokers, insurance agents, real estate attorney, can get recommendations from local real estate club.
2. Focusing on only ONE real estate investment deal
solution: don't wait on ONE deal, always be looking even after submitting offers
3. Purchasing before Planning
solution – you see a great deal and you forget about the fundamentals – There are a TON of real estate investing opportunities out there but it does not mean it is RIGHT for you. Keep in mind: location, condition, costs, and the market (comps).
4. Miscalculating Costs – repairs, profit margins, fees, etc…
solution: free contractor estimates, realtor fees, title fees, property tax, home insurance
5. Not valuing your time as an investor
solution: set daily and weekly goals to be accomplished. Excel spreadsheet – Day 1 – Hours spent on “this” – accomplished what? When you are able to take a step back and see where your time is going, you are able to better manage it.
6. Not Having an Exit Strategy or only one solution: flip/rehab–lease purchase–rent
In summary, all real estate investors will/or have experienced this at one point or another, but the key is to NOT repeat these mistakes. As long as you do the prep work, the research, and the planning you should be able to avoid most, if not all, of these common mistakes.
Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.
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