How To Avoid Common Real Estate Investing Mistakes
By JD Esajian on December 29, 2014
As lucrative and enjoyable as the real estate investing business can be, the reality is that it is not very easy. Sure, almost anyone can be an investor, but it is difficult to master if you aren’t willing to put the time and work in. Instead of being flooded with deals as they are getting started, new investors are shocked to find out just how much work is really involved. This leads to a large percentage not making it through their first year in the business. There are deals out there for those investors willing to push through, regardless of what is in front of them. If you want to succeed, you need to avoid the common excuses that many newbies use.
The single most common excuse for not closing deals: not having access to money. Obviously money and financing are certainly essential, but they are much easier to find than you may think. If you truly have a passion and thirst for the business, you can start by reaching out to your family, friends and coworkers. A simple letter or email can get the ball rolling and provide you with more leads than you may have imagined. Even if you don’t feel comfortable going this route you can attend networking meetings and investment clubs. They, very well, may have direct interest in working with you. If not, they may know somebody that does. If you rest on your laurels and wait for business to come your way, you may be waiting a very long time. There are multiple outlets for financing. You just have to go out and get them.
Some of the most successful investors got their start doing things they may have not wanted to do. Another popular excuse is that all the good deals are already taken. There may not be as many deals as you would like, but deals are being done every day. If you are actively looking without success, you should see who is closing these and look to do something with them. This may mean that you work on getting leads or doing grunt work for them to find deals, but at least you are staying active and possibly earning something for your time. The more you know and the more people you work with, the more deals you will have access to down the road. Knocking on doors may not have been what you anticipated when you started, but it may be something you have to do to give your business a jump-start. Until you gain a track record or develop your niche, finding deals may require you to step out of your comfort zone. If you do this, you will be rewarded with knowledge and deals at some point in the very near future.
It can be easy to blame your success on what type of market you are in. Most areas and markets are different and present different challenges. If there are truly not a lot of deals or a lack of inventory, you should change what you are looking at. This means that you may need to change the way you invest, market or think about the business. If you are trying to invest like everyone else in your area, you will be a victim of the market. However, if you create your own niche and plant your own flag, you can have much less competition and many more leads. If you use your market as an excuse, you need to consider how you view the business. Any type of change in life and business isn’t easy, but if you are struggling gaining traction in your market you can always switch things up. Between tax liens, mobile homes and condos, there are many different niches that have proven to be highly successful. Your market should be just a small obstacle if you really want to be an investor.
Gaining contacts with today’s technology is as easy as it has ever been. While you can make an introduction online, business is still more successful if it is face to face. If you use an excuse that you can’t find anyone to work with, you are simply not trying hard enough. Instead of giving up after one or two emails to realtors or attorneys, you can get in your car and knock on their door. If you have found an investor online that can be a good fit, don’t wait to set up a meeting. Networking and meeting people may not be your style, but it is essential in real estate. The sooner you can develop a relationship with a realtor, attorney, contractor or accountant, the quicker you will start closing deals.
There is truly not much that separates one investor from the next. What is typically the case is that those investors who are the most proactive in dealing with any problems that come their way will be the most successful. You can either make excuses or find ways around them