When most real estate investors start out they are excited about the possibilities in their horizons. They see big payoffs in their future. What they don’t realize is that making a profit in the investing niche can be very risky as well as time consuming. The thought of making thousands of dollars in one deal is very enticing but the reality is that real estate can be risky, confusing, and tricky. Below are the top 3 real estate investing mistakes that should be avoided when starting out in the investor’s arena.
1. Using your own money
Never pay for a deal out of your pocket or a friend’s pocket. Make sure you take time to establish some business credit and set up your company in such a way that it is separate from you should anything bad or unexpected ever happen. There are very inexpensive ways to set up yourself properly and real estate investing professionals that specialize in this type of field. Not only will this protect you and your family but it will also save you thousands of dollars in taxes.
Tip: The easiest way to find a knowledgeable business professional that will help you set up your business properly is to check out investing teleseminars online. Online teleseminars share information and host experts focused all fields real estate investing.
2. Trying it out alone.
The investing niches are continuously evolving and moves with the market quickly. Nothing ever stays the same. The second worse thing you could do is to attempt your first deal on your own. There are coaches and mentors available out there that you can pay for or if you’re on a tight budget you can utilize for little to no cost. Some ways to find knowledgeable real estate investors is to sign up for online teleseminar series focused around investing. You can also attend your local REIA if you are interested in networking with like minded individuals. There are usually plenty of local real estate investors attending REIA meetings that would enjoy an apprentice. Attending REIA meetings is a great way to make business connections as well.
3. Using outdated information or systems
Make sure you always are update with the most cutting edge real estate information. The economy can change at the snap of a finger and different methods can work best at different times. The best way to stay in the loop is to attend live real estate investing events, join online teleseminar series, and purchase programs from today’s most proven successful investors.
So remember, do not let the excitement and impatience of potential profits go straight to your head to where you start off on the wrong foot. Make sure you never use your own money, learn how to invest alone or use outdated noneffective methods or systems of investing. Avoiding these 3 common mistakes will save you lots of stress, time and money.
By John Benson