Top 4 Killers of Real Estate Investing Careers

Mistakes happen, but as a real estate investor mistakes can end your career. With the amount of money that is on the line with each transaction one slip can destroy years of hard work. Do you know what the top 4 mistakes real estate investors make are? You should, because any one of them can end your real estate investing career, especially if you are just starting out! Know these and make sure none of them bite you.

BUYING A PROPERTY JUST FOR THE APPRECIATION – This is the top real estate investor killer of the last few years, and I put it in first because you should NEVER buy a property based solely on its appreciation. This is akin to trying to time the stock market. Yes you can buy and sell on the up swing and make money. People were making 15% a quarter on houses in the Seattle area doing this. But, just like stocks, when the needle swings the other way you get burned. Many real estate investors have gone under because of this!

PAYING TOO MUCH FOR A PROPERTY – We all love a good deal and sometimes we get too excited by what appears to be a ‘hot deal’ and jump in before checking out all the facts. This is where knowledge of the market you are in and having a great real estate agent on your team are essential. Get your offer in and then follow up to make sure that you are accurate on your estimates of what it will sell for and what your repair and holding costs will be. Screw these up and you can be upside down and bleeding money in a heart beat.

NOT HAVING ENOUGH EXIT STRATEGIES – You have probably heard it a hundred times. “The money is made when you buy the property.” Sure, but the truth is that you don’t get to have that money until you actually execute an exit strategy. Which one it is doesn’t really matter. What is important is having one primary and at least one secondary way of exiting from your property when it is time. This is a trap a lot of investors fell into with fix and flips. They bought it, fixed it and now can’t sell it. With no back up exit plans, they are hosed. Do not be that investor!

TRYING TO DO IT ALL YOURSELF – “No man is an island!”Yeah I know I am making with the quotes today, but it is true. You might be able to pull off doing it all yourself but is it smart? Especially if you are doing a hands on project like a fix and flip, there are things tasks you should farm out, delegate and just plain farm out. Even if you know how to do everything on the list of projects, it is a good idea to not take it all on. You will quickly burn out if your face is in real estate projects from before the sun comes up till after the sun goes down every night. Stay fresh, work smart and delegate out what work you can!

There are top 4 mistakes that will kill your real estate investing business. There are of course many other pit falls that you can trip in, but these are three of the most common killers of real estate investor’s careers.