6 Mistakes Real Estate Investors Make: Video
I really like Frank Chen’s easy to understand methods. He’s really smart and a great teacher because he’s so easy to understand!
We all make mistakes when we’re learning something new and the best way to avoid them is to know about them. Frank will explain some of the most common real estate investor mistakes in the video below.
Uploaded by Frank Chen on Feb 25, 2011
http://www.REIClub.com – Real Estate Investors Make Mistakes, But An Educated Real Estate Investor Can Avoid Some of These Errors…
Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I’ve got a quick video on the 6 most common mistakes made by real estate investors and how to avoid them!
1. Not Having a Team – Realtor, Attorney’s, title company, contractor, insurance agent, etc…
solution: start small – realtor and contractor, through time start building long term – title companies, brokers, insurance agents, real estate attorney, can get recommendations from local real estate club.
2. Focusing on only ONE real estate investment deal
solution: don’t wait on ONE deal, always be looking even after submitting offers
3. Purchasing before Planning
solution – you see a great deal and you forget about the fundamentals – There are a TON of real estate investing opportunities out there but it does not mean it is RIGHT for you. Keep in mind: location, condition, costs, and the market (comps).
4. Miscalculating Costs – repairs, profit margins, fees, etc…
solution: free contractor estimates, realtor fees, title fees, property tax, home insurance
5. Not valuing your time as an investor
solution: set daily and weekly goals to be accomplished. Excel spreadsheet – Day 1 – Hours spent on “this” – accomplished what? When you are able to take a step back and see where your time is going, you are able to better manage it.
6. Not Having an Exit Strategy or only one
solution: flip/rehab–lease purchase–rent
In summary, all real estate investors will/or have experienced this at one point or another, but the key is to NOT repeat these mistakes. As long as you do the prep work, the research, and the planning you should be able to avoid most, if not all, of these common mistakes.