“Entrepreneurship is living a few years of your life like most people will not, so that you can spend the rest of your life like most people cannot.” –Author Unknown
There has never been any doubt that investing in real estate has been one of the tried and tested paths towards financial freedom.
It is one of those pecuniary avenues that provide the most revenue. With this in mind, so many individuals who wish to seek better leverage on their finances have decided to dip their toes into real estate and invest their money on properties that would potential make up their real estate portfolio. While this is a sound idea, novice real estate investors would often experience roadblocks that would cause them to give up on their endeavors. This is unfortunate considering there is a wealth of information offered online as to what budding investors should do in order to lock in success. However, as it is real estate investments require not only your enthusiasm and interest, but your discipline and commitment as well.
Much like any other industry in the world, it is integral to be aware of the common pitfalls so as to avoid become a statistic in the game of properties. There have been way too many investors who start with the intention of making their marks in the industry. Unfortunately, only a handful of them would ever really make it big or even get past their first property investment. In this regard, their chances for making genuine wealth through real estate would seem diminished. In any case, if you have been for a while now, take a gander at this list first. What you are about to read might prove to be useful in your venture towards making it big in the real estate industry.
#1. Heart over head
The reality is, most prospective real estate investors would buy a home that is neither driven by logic or practicality. More often than not, their purchasing decision would be influenced by their emotion and rarely would it be about logic. While this is a sound way to purchase your first home which you intend to occupy and reside in (it is your sanctuary after all), the same cannot be said for investment properties. When buying your first property, you should approach it based on analytical research. Remember, if you let your emotions cloud your judgment, you will be more likely to overcapitalize on your purchase. This means you will hardly negotiate the price and the possible outcome of your investment goals.
#2. You fail to plan
Planning is an integral part of any type of venture—be it an investment one or a business pitch. In this regard, ploughing through real estate sans a meticulously laid out plan is the worst possible mistake you can make. When you fail to plan, you are planning to fail. It might sound like a clichéd adage, but it holds true until today. Most novice property investors would center their goals on building a lucrative property portfolio. But this would almost be impossible to do without a concrete strategy as to how to do just that. Remember, your plans serve as the navigating tool towards realizing your goals. So, ensure that you dedicate enough time in planning before buying your first property.
#3. Diving in or dithering
Either of the two would be incredibly detrimental when it comes to any of your real estate ventures. Two of some of the most common traits among novice real estate investors who never make it past the first property are either being too cautious or acting way too impulsively. While the former procrastinates and is their own worst enemy, the latter is in a hurry and would not think things through before going with a transaction. Impulsive investors immediately buy into the first property they see potential in without thinking it through. After that does not make them rick overnight, they become disappointed and entirely give up on their endeavors. The procrastinators are not any better either as they are paralyzed by their fear of over investing and never making any returns. Impulsive buyers tend to learn from their mistakes and lead a successful career in real investment in the future but the latter might never overcome their fear. In this regard, your best tack would be to find the medium and learn as much as you can in order to be comfortable the decisions you would soon make as regards your investments.