Investing Mistakes to Avoid
The top 5 mistakes that I see investors make when investing in real estate...
1. Lone Ranger Mentality
2. No Plan
3. Lack of Protection
4. Over Pay
5. Anxious
Explained Further...
- LONE RANGER MENTALITY-Investors think they know everything and can do everything themselves. Real estate is a team sport as expressed in Rich Dad, Poor Dad book series. The Lone Rangers of the world will get to the top. However, it will take them longer because they do not have a team to assist them.
- NO PLAN-Many investors do not create a plan before investing in real estate. That is a huge mistake. "Make the Call, Set the PLAN, and Do the Deal$" is my tag line on my radio show. First, we create the plan. Then, we do the deals. There is a natural order to follow.
- LACK OF PROTECTION-Many investors do not cover the proper insurance both personally and professionally. Furthermore, most investors do not have their properties in LLCs for a layer of protection in case of lawsuits down the road. Many investors continue to increase their investors. However, they do not protect their assets.
- OVERPAY-Investors will work with a real estate agent without asking their own experience. There is a lot of due dligence when it comes to researching investment properties. One must be skilled to judge the market and current market value. I have witnessed many investors pay too much for the property. Here is my motto"DO NOT PAY RETAIL."
- ANXIOUS-Real estate is a game of patience. It reminds me of playing chess. Most investors jump the gun too quickly. This costs them big time down the road.