Common Mistakes that Real Estate Investors Make: 1 through 5

  1. Success vs Work – The only place where success comes before work is in the dictionary
  2. Rookie Investors – Rookie real estate investors would be much better served going out and looking at 50 to 100 houses or properties before purchasing a property, an investment seminar, or even a book.  Okay, you can buy a book before looking at a house, but only one!
  3. Buy and Hold Real Estate – Buying and holding real estate can take a long time to turn into a meaningful stream of cash flow.  Many would-be investors give up half way through the process because life happens and plans change.  Thus, the initial work and success is lost because the investor gives up or adds more expenses to their lives . . . which starts the process over.
  4. Not Purchasing Property for Cash Flow – The key component of permanent wealth is cash flow.  This is because cash flow from passive investments, from a return quality perspective, is one of the best ways to make money.  It has greater tax advantages.  Your asset is making money for you before you sell it.  And, you have a high degree of control over that cash flow stream compared to almost every other investment
  5. Not Planning Ahead – Lack of a proper plan is the biggest mistakes made by novice investors.  Finding a house after forming a proper investment strategy is the right way, instead of looking for a house to fit the plan.  any make the mistake of buying a house because it seems to be a good deal and then try to se how they can fit it into their plan.  Instead of buying a house and thinking one can plan in due course, investors should concentrate on the numbers and try to make offers on multiple properties.  This will ensure a good property that not only matches their investment model, but also works out well with the numbers they on their plan.