Mistakes are common, and something that is necessary in the learning process. In this episode Tyler Sheff and Larry Harbolt discuss many of the common mistakes that investors make (including us)
#1 Being in a rush to make money fast / get rich quick:
Making money in real estate is a time tested way to build wealth, however it is far from a “get rich quick” scenario. Larry discusses when you build a house, you don’t begin with the roof, you begin with the foundation. Niche methods are fine, however the investor must have many tools in their toolbox to acquire properties.
#2 Over Analyzing / Analysis Paralysis:
A successful investor takes the time to decide what their profit margins needs to be. If the “deal” does not fit the numbers then you have two choices….negotiate to structure the deal so the numbers work or pass on the deal. By first figuring out what your needs are from the investment, you can then build a template to use in order to quickly analyze deals.
#3 Inheriting someone else’s nightmare:
Just because the seller says “yes” or makes it “easy” to buy their property that does not necessarily make it a worthwhile investment. Don’t be in a rush to just “do a deal”
#4 Getting caught up in bidding wars:
Cash buyers often get caught up in bidding wars…99% of the time this results in the buyer overpaying for the property. Avoid bidding wars at all costs. Instead, focus on finding problems, not properties. To us that means looking for properties that are not necessarily “for sale”, this alone helps eliminate the competition.
#5 Getting a real estate license to gain MLS access:
The MLS can be a great tool…for those that sell houses for others. As an investor, it helps to instead focus on opportunities that are not “for sale” whenever possible. The Multiple Listing Services are simply a tool, however similar services are available that provide the same information for about 75% less cost than having a real estate license.
#6 Being sucked into the “Guru Hype”:
Real estate is not easy, and its NOT a get rich quick scenario. There is no secret sales script, no secret formula. There is no single course or software program that will “do it for you”. Instead it takes hard work, self discipline and determination.