Why are some real estate buyers book profit while others not? Why are some investors’ first deals happen to be their last? Are some people just lucky or destined for greatness while others are not? As Peter Drucker stated about being a successful entrepreneur, “It’s not magic, it’s not mysterious, and it has nothing to do with the genes. It’s a discipline. And, like any other thing on this planet, it can be learned.” The good thing is, each one of us has an opportunity to be successful in this business. The purpose of this article is to assist you with your success by pointing out some of the following common mistakes:
1) Not investing in yourself – Investing in real estate requires the involvement of a lot of money. With so much money involved, shouldn’t you know and understand as many options as possible when it comes to purchasing or selling properties? How about learning how to acquire properties without using any of your own money or credit! As the above quote states,…’ It’s a discipline that can be learned. So, get educated! Many yester year’s investors faced bad results because they learned one or two investing strategies only, and when the market changed, they were unable to adapt due to their lack of knowledge. There are more ways you can ever imagine to acquire properties and a lot many do not even involve using your own money or credit. Perceiving these various types of strategies allow buyers to adapt to the market alongside finding potential deals about which they otherwise would not have known.
2) Not treating real estate investing as a business – If you are looking for a hobby, find something safe like backpacking, bike riding, or needlepoint! Dealing with the money, successful investing does demand a high degree of education, planning, and systemized processes. If you are seeking to create wealth through real estate investing, then spend more time and effort taking this opportunity seriously. This means developing a business and marketing plan, creating an entity, building a team of professionals, establishing business credit, attending educational events, and dedicating non-negotiable time on a daily or weekly basis which you will mind working solely on this business. Finally, people can do their hobbies by themselves. Successful investors surround themselves with others who share the same passion and find a mentor who is willing to share their experiences.
3) Hiding your new project – Be your own Billboard! Let others know that you are interested in real estate investing. This will help others who want to sell, looking to purchase in collaboration or someone who is behind on payments know about you and they might contact you upfront with a plan. Successful investors understand the importance of leveraging other peoples’ resources and relationships. These relationships will build your business tenfold! So, first thing to discard is to be hiding about becoming an investor…LET THE WORLD KNOW LOUD AND CLEAR!
4) Thinking online marketing is not needed – More people are using the internet than at any time before. They use the internet to not only look for options on buying or selling a property, but they use it to also research the investor to see who you are or what experience you have. One of the best ways to build credibility or legitimacy in you as an investor is to have a professional-looking website. Getting involved with press releases or article marketing will assist you with creating an ‘expertise’ level of knowledge on the subject. People will ‘Google’ your name. Have websites, articles, and press releases written so you can control the information people find out about you!
5) Not utilizing the services of real estate agents – A good real estate agent can be one of your greatest allies. However, not all agents having fancy offices and big billboards have the same skill set, knowledge, or experience. The first step towards achieving a good property starts with finding an agent who understands your end goals and investing strategy. Agents have better than average knowledge about developments, and trends, and can also let you know about great potential opportunities much before they are listed! Plus, they are able to provide great assistance with running comparables. Therefore, there are some tremendous advantages to having a Realtor on your team.
In conclusion, no one is perfect. Every investor has made mistakes, and you will too. It is much more fun, and digestible to make smaller mistakes rather than making a blunder. So, the best way to save yourself is to talk to others and find out what they did correctly, along with asking about what mistakes they made! By taking this opportunity seriously, planning well, and leveraging the resources, skills, and relationships of others, you will put yourself in a better and quicker position for success.