4 Ways to Fail in Property Investing

While property investing can be a lucrative way to make a living amid these trying times, you won’t get closer to fulfilling your dreams if you don’t know the mistakes to avoid when investing in real estate.

Fortunately, I have taken the privilege to list down some of the most common blunders that many real estate entrepreneurs commit in their haste to build a real estate empire:


Mistake No. 1: Investing in properties without prior real estate knowledge.

Time and time again, many people have been stressing the importance of having education. From Greek philosopher Aristotle to famed scientist Albert Einstein, successful individuals from every generation underscored the benefits of being well-informed. Therefore, if you don’t want to become a complete and utter failure in real estate investing, spend some time and money on your education. But if you think education is expensive, try ignorance.


Mistake No. 2: Investing without a plan.

As the saying goes, if you fail to plan, you plan to fail. If you want to be a prolific property investor, you should set specific goals and develop a plan to realize those goals. And once you have come up with a solid plan, you should work hard and strive to implement the plan that you have created.

Having an investment plan can do wonders to your property investing business. It can serve as a map to your success, as well as help you determine the strengths and weaknesses of your real estate investing strategies.


Mistake No. 3: Falling in love with your investment properties.

While it is true that your personal preferences can serve as an effective yardstick when choosing houses to invest in, you shouldn’t solely rely on them. You should give priority to the needs and wants of your buyers. For instance, when doing the paintjob on a fix and flip project, pick the color that your buyer would like and not your favorite shade of pink. Because you’re not the one who’s going to live in the house, you shouldn’t let yourself be too emotionally attached with an investment property.


Mistake No. 4: Investing without observing due diligence.

When investing in real estate, see to it that you did your homework well. Did you check the property’s history? Are you sure that the property has a high after repair value? Did you study the comparable sales in the area you want to invest in? Can you guarantee that potential buyers will be happy to live in the neighborhood where your investment property is located? If you fail to answer any of these questions, then it is only a matter of time before you find yourself in a sticky situation.

If you want to know more property investing mistakes and learn how to avoid them, visit www.REIWired.com.