Joining the real estate fever bandwagon hits everywhere like a plague. You see them all the time, newbies and aspirants hoping to get a slice of that enticing pizza but not many succeed. They always commit mistakes which are common enough but are stubborn to commit again and again! To reiterate further, here they are-
Stock Market Mentality
If you think that earning huge profits because you believe what you bought is part of a rapid appreciation of the market, then you are committing a mistake. Just because somebody else did it at one point in time it can happen to you also again and again. Short-term appreciation is a big gamble to cut it short and unless you have lots to lose, you may end up in total negative status. Investing in real property can be compared to that of surfing. Knowing how to ride the wave can be exciting but if you don’t, you get drowned easily. Invest only in short-term appreciation when you have mastered the waves of real estate property markets. Study all the experiences of the masters and in due time, you can also benefit from this type of investment.
Investing Blind
Investing in real estate properties without proper knowledge is super dangerous,s, to say the least. Even those who have tons of experience in this field are not exempted from failure. There are also risks involved when you follow the wrong advice. Take for example this real story from a forum on the internet. A newbie was asking if a seminar offered about real state investment was worth the expense and someone answered him and said, “Why waste that money on such things? You can save that money to put it as a down payment and learn as you go.” Now this is one pretty bad advice.
Always remember that real state seminars and other similar activities are beneficial not only for the knowledge you will learn but also from the contacts that you can get. Sometimes the things you learn from real people are better than what you read from books or the internet. The more knowledge you have, the less risky your future transactions will end up
No Cash Reserves
If you do not have cash flow, then it is advised that you do not enter the world of real estate property markets. Even K-Mart has to learn this lesson the hard way ano think that this is fundamental to any kind of business. “Cash Flow” are two most important words in any field of business and without it, your survival is at risk one hundred percent.
Real Estate Business Is Not a Game-
Don’t think that you can make an overnight sensation in the real estate business. Most people quit after three months from the time they think they can make it but if one wants to succeed in this field, one must be willing to wait. Just learning the ropes can take time already so even three months is not enough. Besides, real estate businesses are serious businesses and if you are not, find other ways to earn a living.