THE 7 DEADLY SINS OF REAL ESTATE INVESTING

by Mr. Tycoon

We live in an age of investment uncertainty; an unprecedented period where the promise of wealth and comfort is pitched to every man, woman and child, but the realization has failed to materialize. An age when the average American citizen, a card-carrying member of the richest nation on earth, has seen the return on his or her hard-earned investment capital eaten away by under performing stocks, bonds, unpredictable mutual funds, and corporate pension fund pillaging (Enron and WorldCom, just to name a few). Who would have thought this could or would happen. It is no wonder that Americans are seeking other investment options to secure their own futures, and the futures of their families. And, it is no wonder that Americans are flocking in record-breaking numbers to the realm of real estate investing! As everyone knows, Real Estate Investing has created more MILLIONAIRES than any other industry or enterprise.

Most investors, be they novice or seasoned, have a basic understanding of real estate and its ability to gain value over time (which is called appreciation). That is why each year millions of Americans try their hand at real estate investing. Some get out of the starting block and some sit idly by questioning every deal – “Is this the right one for me to get started?” More than 95% of the individuals who embark on a real estate investment career fail to realize the massive income rewards that real estate investing offers. Why is that?

There are a host of reasons, but all of them can be summed up into what I term The 7 Deadly Sins of Real Estate Investing. These are not in any particular order, and one is not more important to avoid than the other. They are all interrelated and are the top reasons why many people don’t reach their investing potential.

1: Lack of Education or Training.
This is probably the most common and widespread. An “AA”, “BS”, “BA”, “MA”, or even a “PhD” does not qualify you to be a real estate investor. In fact, it just may hinder you analytical thinkers! Real estate investing is a field unto itself with many specialties and areas to be mastered, e.g. Wholesaling; Subject To’s; Options; Retailing; Commercial; Foreclosures; Land Development; and Rentals; to name a few. Just as a doctor has to attend medical school and an electrician must go through an apprenticeship and pass certain tests to be considered a master, so too must you aspiring real estate investors learn your craft and apprentice with a Master Real Estate Investor. You must get training, education and experience, with someone who has traveled that road successfully. This leads us to:

2: Lack of Preparation.
Would you jump into the deep end of a pool without knowing how to swim? So why jump into real estate investing without a life jacket (education) or a lifeguard (your Real Estate Coach or Mentor)? Proper Preparation Prevents Poor Performance! This is the mantra for success in any endeavor. In order to be properly prepared, you must get PROPER training from someone who has done what you want to do, accomplished what you want to accomplish. I am not just talking in theory, but a person who has done it in real life. This prevents you from performing poorly and failing, like so many.

It has been said that experience is the best teacher, and hopefully it’s someone else’s experience!!
Your coach or mentor is there to guide you through, around, and over the pitfalls and potholes they, themselves, have experienced. Without them you’ll end up falling victim to: