3 Big Real Estate Mistakes To Avoid


Do you love the idea of making big money in Real Estate ? Do you think anyone can build their fortune with Real Estate ? If you answered yes, then you had better read on !


Mistake #1


I have been to many Real Estate presentations from various promoters who claim anyone can make a fortune with Real Estate. They play on your emotions and get you excited about entering the big leagues and making the big dollars. Is it realistic to expect everyone that attends one of these presentations will become a real estate tycoon ? Not likely !

When it comes to any type of investing, keep your emotions at home. Investing in anything based on emotion can be a disaster, especially when it comes to Real Estate. If you find yourself really excited about an investment opportunity, put it down and walk away. Distance yourself from the excitement and take as much time as you need to calm down and get your head together.

Investing is a business, not a marriage. Do not get excited, fall in love, or think that there will never be another opportunity. There will be many opportunities if you leave your emotions where they belong.


Mistake #2


You are investing your money and/or time for one reason and one reason only. To make money. Period !

It may sound boring and it probably will be, but you must run the numbers. Who ever said investing was exciting anyway. Many investments look promising on the surface but fail miserably once you run the numbers.

Revenue Real Estate investing is more complex than many other forms of investing and careful attention to detail must be taken. Know your costs and obligations before you ever make an offer.

You absolutely must have a positive cash flow to have any kind of chance of making money in Real Estate. Positive cash flow is after all expenses including mortgage payments. Don't be fooled into counting on Capital Appreciation to make your money. That may never happen and in many cases you may loose capital over time depending on market conditions.


Mistake #3


Would you ever think about flying a plane without first learning how ? I would hope you said no to that question. Then why would you buy any Revenue Real Estate without first learning how ? In both cases you would most likely crash and burn, one physically and one financially.

It amazes me at how many people get into the Revenue Real Estate market before taking the necessary steps to learn how. They get caught up in the excitement of other people they know or have heard of that have done well in Real Estate. They mistakenly start thinking that if so and so could do it, so could I. Bad assumption.

Before taking the huge plunge into Revenue Real Estate take a course from a reliable source. Be the one that initiates this action and look for ones with a good reputation. Do not get suckered into the travelling road shows selling get rich quick Real Estate schemes. All you have to do is ask why are they wasting their time travelling around when they could be making gobs of money for themselves buying Real Estate. The answer. They are making their money from you.


What To Do 


There you go. Three very common mistakes that you should now not make when it comes to investing in Revenue Real Estate. The successful Real Estate investors are the ones that are in the know. They do not buy on emotional impulses. They never buy anything that does not put positive cash flow into their pocket from day one. They never get into a deal where they do not know exactly what they are doing.

Do what the pros do. Keep your emotions out of your investment decisions. Run your numbers well before ever considering making an offer. If it doesn't give you a positive cash flow, continue your search. Know what you are getting into well before you ever consider taking the plunge.

As always, I welcome your comments and suggestions for future topics.


Comments

Your post is really providing good information.. When it comes to buying and selling properties, it is still possible to make money, but it won't be easy. However, avoiding some classic mistakes will help put you on the right track.

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