Mistakes When Investing In Real Estate

4 Real Estate Investing Mistakes

Posted by Grant Cardone

If you fail to plan, you’re planning to fail. In my experience, if you’re not making the effort to learn how to do things the right way, you’ll be making these 4 real estate investing mistakes that will cost you tons of time and money.

Don’t assume that just because you want the honest truth about real estate from me that I’m telling you everything’s gonna work out great for ya. Let’s get started:

1. Not being aggressive enough

You may have a conservative strategy for investing in real estate but there’s no such thing as being too aggressive. If you’re not out competing with other investors to put offers on properties, you’re gonna have a hard time making money from your investments.

The truth is, if you wanna become wealthy in this game – you can’t sit back and relax. Get out there, talk to people, find the right deals and make them yours. You can’t get further unless you’re willing to be a little aggressive.

2. Selling owned Real Estate

A huge mistake I made was selling real estate when I should have held on to it. There have maybe been a couple deals that I have bought and sold – I shouldn’t have even bought in the first place looking back now.

I had an investment property in a small town that, while not as expensive as some other neighborhoods, has been steadily appreciating for decades. The housing market crashed and my rental income couldn’t cover the mortgage payments anymore so I put it on the market to sell at what is now much lower prices than what they would have been years ago but well below their potential worth today.

3. Not raising money

You HAVE to figure out how to raise money. What do I mean? Build up the capital to get into this game. Warren Buffet said “If you don’t learn how to get cash flow from investments, then you will always spend your time working for others because you didn’t invest.”

Real estate has been proven to be a true asset, since WWII, rents have consistently gone up in America. That means it’ll only continue to increase and more properties means more opportunities for you. So, what’s the best way to raise money?

Try capital preservation. Capital preservation means you WON’T lose money. If your job pays you $60k, then you’re leftover with $10k/year after taxes, food, kids, and home, the key is to not lose your $10k. Keep building it up to use to invest in real estate.

Once you do that, you’ll always have consistent cash flow. The bottom line is, you wanna own something, an asset to pay you every month. With that, continue to use it.


4. Buying too many properties

Now this may seem like the opposite of what you wanna do but listen up, when you try to invest in too many properties all over the place without taking the time to consider if it’s worth value, then you’ll be missing out on money.

Think about it, if you were to focus on only 2-3 incredible deals that are worth a lot, that you know have immense value and will be profitable in the long run, then why not do that instead of trying to go for anything out there on the market?

If you avoid these real estate investing mistakes, I promise you that you’ll save time and money from making the wrong decisions.

If you would like to invest with Cardone Capital, schedule a call below.

*The information provided is for convenience only. It is not investment advice or a recommendation, it does not constitute a solicitation to buy or sell securities, and it may not be relied upon in considering an investment in a Cardone fund. Past performance is no guarantee of future results. Any historical returns expected returns or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. Investment in Cardone funds is available only to independently verified “accredited investors” through an offering made in accordance with Rule 506(c) under Regulation D of the Securities Act of 1933. Before investing in any Cardone fund, prospective investors should consider carefully the investment objective(s), risks, arches, and expenses. While the data we use from third parties is believed to be reliable, we cannot ensure the accuracy or completeness of the data provided. Cardone Capital does not provide legal or tax advice. Prospective investors should consult with a tax or legal adviser before making any investment decision.

**Targeted IRR and Equity Multiple listed above represents the property’s internal rate of return (IRR) or Equity Multiple based on the property’s forecasted cash flows generated over a period of time and the amount invested in the property. This is different from the forecasted IRR or Equity Multiple to the investor in the applicable fund or other investment vehicle.

***We temporarily ceased distributions for 3 months in response to COVID-19 as a business decision to protect the Fund and also in accordance with the Operating Agreement. We have since started making distributions again. There could be reasons in the future that we similarly make the decision to cease distributions if it is in the best interest of the Fund.

The website may contain forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. These statements involve known and unknown risks, uncertainties, and other factors that may cause an investment’s actual results to be materially and adversely different from those expressed or implied by these forward-looking statements. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All securities involve risk and may result in partial or total loss. Before making an investment decision with respect to any offering, potential investors are advised to carefully read the related subscription and offering memorandum documents and to consult with their tax, legal and financial advisors. Cardone Capital does not give investment advice or recommendations regarding any offering posted on the website.

Click here for more info