Common Mistakes Real Estate Investors Make

Have you ever wondered why some real estate investors are so successful, while others seem to run into roadblocks at every turn? Well, it’s quite simple. The successful real estate investor knows the ins and outs of his business and always makes sure not to put the cart before the horse. He knows all the pitfalls that exist in the world of investing and he knows how to avoid them. Here are some of the biggest mistakes investors make.

They are:

Finding a great property without having a plan. You should never look for a deal before you have a plan. Many excited investors will go out and find a great property and not have any idea as to what they should do next. This is where investors run into trouble. They have painted themselves into a corner without a plan of how to get out. In order to be successful you will want to make sure you have a plan and then go out and find just the right house that works with your plan. We are a world of planning people. We plan for the future, for our kid’s college education, and for our retirement. When it comes to real estate it only makes sense to plan for that too. Sometimes the novice investor gets ahead of themselves and forgets to draw up a plan. Deciding what you want to do in the real estate market will determine what houses you buy and how you sell them. It is best to always have a plan.

Investors always seem to plan on getting rich quick. While this may sound great, getting rich quick is nearly impossible. The big deals which will net you millions are only a dream. Investing in real estate is a slow and steady process, not something that can be accomplished overnight. When you proceed at a steady pace, you will keep moving towards your goal. You can make money, but being a millionaire overnight is stretching the limit. On average, a good investor can make $60 to $100 thousand a year with proper real estate investments. This strategy allows for a steady forward progress and takes into consideration that not everything will go as planned. You must keep real estate investing just what it is REAL.

Investors assume they can go it alone. Don’t ever assume you can do everything yourself. The smart investor has a team of specialists who assists him or her. Even they may not know they are part of a team, it is a team all the same. This is not a loner business.

Some of the most important members of your team should be:

-A good real estate agent that you can trust to help you analyze the properties.
-An appraiser and contractor or inspector to make sure the house is worth the investment.
-An attorney who will make sure there are no hidden surprises which may crop up at any point in the deal.
-A lender may not be needed for every deal, but it is nice to have one on your team that you know you can trust.

The belief that it is a single strategy business. Just because you have a plan, does not mean that will be the plan that will work on every single one of your deals. You must have a plan A, B, C and even a D.

Some examples of reasons why it is good to have different plans are:

-When you want to buy a home and resell it.
-Renting a property if you didn’t have the time to prepare for the housing market change.
-Offering a land contract or lease option to get rid of the property if renting is no longer an option.
-Selling the property at a loss to cut your losses before you lose any more money. The wise real estate investor also knows when to bail.

Now that you know some of the most common mistakes in real estate investing, the easiest way to avoid them is with a little research and planning. Make sure you take the time to learn the business before you start purchasing properties. There is a wide range of tools available to the novice investor from books to seminars that can help you learn the ins and outs of the business of real estate investing. Arm yourself with knowledge and you will save yourself from being another victim of the common mistakes investors make.

Learn Real Estate Investing From The Pros

With the wide range of real estate investment programs on the market, you may be wondering which ones are really worth the money and which ones you should let pass you by. Follow these simple steps and you too will be profiting like you have always dreamed you would. The steps are as follows:

Determine what marketing niche you are going to specialize in when it comes to investing in real estate. You may want to invest in bankruptcies or you might choose to flip properties. Another avenue for investment is buying rental properties. Either one you choose can yield a good profit. The real estate pros that are successful have chosen a marketing niche in which they specialize. You can learn to invest from the pros that have specialized in your market.

Find someone who is offering training programs in your area. These are the people who have made money investing in the local market in which you are planning to invest. This is the person you want to listen to. It will do no good to try techniques used by someone in Colorado when you live in Florida. You want to learn from someone who knows the laws governing your area. You want to find out what you can about the real estate investment market for your part of the country. Finding a local investor who has made it work will allow you to learn what you need to in order for your business to become successful.

Invest your money in a program that has a complete training package. Someone who is selling you a book and a few tapes is making their money on the program you are buying. Many of these program authors have not even made any other real estate transaction except for the one that helped them buy their own home. You want to learn to invest from the pros that have been there and done that. You want to find out what worked for them and what mistakes they made. A good investor who is willing to share his or her knowledge will tell you the pitfalls. They are willing to share the mistakes they made so you can avoid them. This is the person you want to learn from when it comes time to invest in real estate.

Learn from the success stories of other top investors. Many of the top investors who have made their living buying and selling real estate also will share other success stories with you. They are willing to let you get to know others who have been taught to use the same system. The true real estate investor is not afraid to hand out references. They know their system works because they use it every day to make good money. You can learn to invest in real estate from the pros that are willing to provide you with a list of names. Speak with these other trainees. Find out what they like about the program and what they do not. Let them tell you of the experiences they have had when it comes to investing in real estate.

Make sure there is a support line or a team willing to walk you through the system. The last thing you want is for someone to sell you a bunch of books and tapes and just walk away. You want to learn to invest in real estate from the pros that are willing to stand behind you. There are actually a few who will make deals with you. These are legitimate deals where the two of you go together to examine the property and go together for the financing. This type of professional investor is the one who wants to see you succeed. This is the one real estate professional investor who will teach you what you need to know in order to become successful on your own. This is the investor whose package you should buy to learn how to invest in real estate from the pros.

That is all there is to find the right investment training package that will teach you how to invest like a pro. Follow these steps and you too will find the right mentor who will lead you to succeed, so you too can make the investment profits you have always dreamed of.

Things to Know About Investing in International Real Estate

Real estate is a tricky game – you must become very knowledgeable about your target markets and your competitors in order to become successful. That’s true in North America, as well as anywhere else in the world.

But when you start to branch outside of the U.S. real estate market, that’s when things can really start to get complicated. The rules are different, and mistakes can be costly.

Here are a few things you need to know if you’re considering investing in the international real estate.

You Need To Know What Stage Your Market Is In

There are roughly five stages to every emerging market. If you don’t know what stage that market is in, you could get taken to the cleaners. The first stage is usually reserved for locals only. This means that locals are using the land for their own purpose, like agriculture and business.

An outside party can bring that land to the second stage, which means that large swathes of land are bought for the purpose of developing them at a later date (or hanging onto them indefinitely).

These large swatches are eventually broken up into smaller parcels, becoming further developed and moving into stage three of the real estate market stages. These parcels can become small enough that homebuyers can actually come in and purchase, as well as speculators.

The land switches to a mainstream homebuyer market in stage four when restaurants, hotels, and other consumer-driven developments arrive. This then becomes a full-fledged city at stage five, with all the infrastructure and civil services that come with it.

Each stage has its own advantages and challenges. For the risk-averse, the early stages are the riskiest – but do provide the highest beta. This means that with a higher risk, comes a higher reward.

You Must Have A Plan

Without a plan, you’ll never have a clear vision of what to do with your new investment. Knowing if you are planning on renting the house, living in it, or just holding onto the property until property values rise are important questions to ask yourself before diving into real estate.

You Won’t Get Rich Quick

Real estate investing is a long-term investment. There’s no way around that – while people in distinct markets may have sped up this timeline, the fact of the matter is that real estate is hard work, and may not pay off in the end if you don’t do your research beforehand.

You Must Study Up

Becoming a successful international real estate investor means knowing everything you possibly can about the situation you are putting yourself in: the local market, the neighborhood, and even the property itself. If you don’t know what your cash flows will be, like how long it usually takes to rent a property in your market, you may have too much overhead to cover each month. Know before you buy!

Final Tips

As a final word of wisdom, becoming a real estate tycoon is hard work, and isn’t for everyone. If you take on something that is a little too far over your head, you run the risk of damaging your livelihood, your family, and your future. Know yourself before buying any property, and understand the risks and time commitment involved.