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.
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