21 Oct Three Mistakes to Avoid When Starting out in Real Estate
Having been in the real estate world for a while now, I can tell you that it can be difficult to get started. With the temperamental nature of the market in the past two decades, you have to stay on top of the game. When you’re getting started, you can really give yourself a boost by making sure that you are surrounded by good people and keeping your priorities straight. People are a necessary part of real estate investing. Because of that it’s important to make sure you’re working with people you trust. But unfortunately, not all real estate investors start out this way. Check out these three tips and get yourself started right.
- Not Having an Experienced Coach: Your chances for success multiply when you have someone who is able to work with you in person on your problems.
- Join a Real Estate Investors Club. All the benefits of an online forum. You get to have a pool of people in the same boat who can pitch in with advice from their personal experiences!
- Read real estate books. The nice thing about having books to coach you is that you have a record of the best tips you learn. Keep your notes and you’ll always have them to refer back to.
- Go to seminars. As the market is ever-evolving, you need to stay updated on new protocols and procedures and trends. Learning never stops!
- Get a real live coach. The previous categories alone don’t count. When you have an active, specific problem, you’ll want to take that question to someone knowledgeable who you trust to interact with you on the issue.
- Overlooking Having a Good Team and System on the Ground: It’s easy to take a step back in the real estate business, but you can stay active by making sure you have a good team running like an oiled machine. Too many owners let things slide on the ground, and the ratings for their properties plummet. Stay on top of this by making sure you have someone you trust in the following genres.
- Real Estate Agent
- Contractor(s) for Rehab
- Property Manager
- Mortgage Broker
- Insurance agent
Not Focusing Your Energy On What Makes You Money: So you’ve got good people above and below you. Now just make sure you are in the right place. Be focused on the money. You can get tied up in buying the nicest properties, when really, you could clean up a well-located but unattractive piece. And you can get too attached to property and spend too much time moving it.
- Look at properties. Keep your options open wide! Don’t be afraid to check section 8 housing. Just make sure you know the market, and know what you have available.
- Crunch numbers and make sure there’s cash flow! It needs to be a two-way street. Don’t let one property drown you.
- Write contracts. Be involved in the process. And most importantly, get in the game. Sometimes you’ll lose a round, but it’s important to try. And if you follow the previous rules, then you’ll be truly set up for success!
What is a real estate investing mistake you warn others not to make?
See you on Sunday!