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Real estate investment is one of the most exciting arenas in the business world. In fact, many people consider real estate to be one of the classic “millionaire-makers” because so many people with massive fortunes generated part or all of those fortunes in the real estate market.
However, even if you have had some pretty serious real estate investing success, this does not make you immune to failure. Just look at entrepreneurs like Donald Trump, who have risen, fallen and risen again thanks to good – and bad – real estate investing decisions.
One of the best ways to avoid the falling part of this equation is to learn from others’ mistakes. Check out these mistakes that even experienced real estate investors make, and keep an eye out for them when you are working on your own deals:
Real Estate Investing Mistake #1: Only Having One Exit Strategy
If you buy a property, you probably have an idea of what you want to do with it. However, you also need at least two other ideas about what you will do with it if your plans fail. Otherwise, you can end up stuck with a lot of “dead” deals.
Real Estate Investing Mistake #2: Only Doing One Deal at a Time
Doing just one deal at a time can create several problems. First, if that deal falls through you have nothing else in the pipeline, which creates a time lapse that can cost you money. Secondly, only doing one deal at a time often means you will put too much into making a deal work that really is not a very good opportunity.
Real Estate Investing Mistake #3: Underestimating the estimates.
Many seasoned investors say that they actually double the cost of every work and repair estimate when they are deciding whether or not to do a deal. If they cannot make money on the property when the costs are doubled, then they don’t do the deal. If you underestimate the time and money it will take to get a property in saleable condition, you nearly always lose.
Peter Vekselman has been successfully investing in real estate since 1996. He has completed over 1200 real estate deals, owned a construction company, been a private lender, and owned a property management company. Peter currently works with clients all over the US helping them achieve riches in real estate.
If you are interested in talking with Peter further about his private real estate coaching program please respond to this email with your full name and all your contact information.
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