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Most Common Mistakes New Real Estate Investors Make & How You Can Avoid Them!

Hey there,

Thanks for taking the time to read this educational blog post…

If you are new to real estate investing I'm sure you will find it valuable as it will save you a ton of stress, time, and money…

Let's start with the easy part…

How to avoid these common mistakes that new real estate investors make…

The answer is easy…

And congratulations you are in the process of doing it right now.

By being proactive and taking the time to educate yourself you can avoid many of the mistakes that other investors have made in the past…

The only investment that delivers a better return than real estate is an investment in your ongoing self-education.

With that out of the way let's talk about the most common mistakes.

Number one: Attempting to do all the work yourself and foolishly believing that you will save money by doing so!

This is a mistake that I see many entrepreneurs, business owners, and real estate investors make. When you try to be the jack of all trades you master none!

This is a surefire way to cause stress, frustration, and overwhelm. I've seen many new investors fail and give up on their dream of financial independence because they simply feel they have to do everything on their own.

Wealthy real estate investors understand but the only way to true financial independence is by creating a team of experts and systems that will allow you to free up your time so that you can work on your business…. And not in your business.

This is the only way to create wealth and have the time freedom to enjoy it with those that you C.A.R.E. about.

Number two: Not taking the time to accurately crunch your numbers.

Many new investors are so excited to get their first deal that they forget about some of the biggest expenses involved in running a real estate investing business.

Many new investors do not calculate an expense for property management because they are going to manage the property themselves…

But remember as I expressed earlier if you try to do everything on your own you will just be creating another job for yourself and not the financial freedom that you desire…

It is fine to manage the property yourself but you still must allocate an expense two management as your own personal time is valuable and as you scale your real estate portfolio you will have the ability to hand off the management to a professional company in the future…. Should you so desire!

In addition they do not calculate a vacancy rate. This is a big mistake because even if you are in a hot market with low vacancy eventually there will be tenant turnover…

So I would recommend that you calculate this expense when doing your numbers.

And finally another expense that many new investors neglect to calculate is property maintenance. You need to account for things such as snow removal, lawn maintenance, fire inspections, furnace maintenance and filter change, just to name a few…

So as you can see if your property is at break-even or minimal cash flow and you did not calculate these three important expenses you will quickly learn the hard way that you have bought yourself a liability that cost money rather than an asset that makes money.

Number three: Bad bookkeeping and cheap accounting services.

If you want to be a successful real estate investor and run a lucrative real estate investing business you must have a system in place to track all income and expenses…

And you want to work with a professional accounting service that understands your goals and investment objectives going forward.

Do not attempt to save money by hiring the cheapest guy in town. I can assure you bet a great accountant is a vital part of your investment team and can yield a great return by helping you implement strategic tax strategies.

*** Side note: if you are investing in Ontario Canada feel free to book a coaching strategy session with me personally and I will share the real estate experts that I personally use in my real estate investing and property management business.

Number four: Not learning how to find off-market real estate deals below market value.

While it is great to have realtors on your team and access to real estate via the MLS system… it is not the place to find extremely good deals…

Because of its simplicity that is where 95% of all real estate investors look so it creates much more competition and that will drive your purchase price up!

And if it's a really good deal chances are that the real estate agent will buy it long before you ever see the deal.

If you want to create true wealth in real estate you need to be able to find off-market deals.

The more leads you have coming your way the better off you will be. If you would like to learn how to do this for yourself I am only a phone call away. Whenever you are ready reach out!

Number 5: Letting your ego get in the way and not asking for help!

Many online gurus today I would like you to believe that they are self-made millionaires. This is nothing more then a sexy marketing gimmick to grab your attention…

There has never been anybody that has created a real estate business or anything of value on their own. If you look at any successful business owner in any industry they have a number of people helping them create wealth!

Be extremely cautious around anybody that attempts to tell you they are self-made millionaires... As that very statement would indicate that they have a huge ego and do not give any credits to the people that helped them attain the millions that they claim to have made!

If you want to grow and scale a lucrative real estate investment company you must be willing to ask for help. Seek out a mentor and or coach that has accomplished what you would like to do and see if they would be willing to teach you…

And as mentioned before, you will need to build a team of real estate experts that you can delegate tasks to…

This will free up your time to do what is most important to you.

Number 6: Not having multiple exit strategies.

Before you ever get into a real estate investment property you should know what your end goal is and you should always have multiple exit strategies…

This will increase your odds of becoming a wealthy real estate investor…

There are many exit strategies but I teach my one-on-one coaching clients to ensure that they do not get stuck with a deal that is not in alignment with their end financial goal.

If you would like to learn more about exit strategies you can join my free weekly “inbox education” here…

Or if you would prefer to speak to me directly you can book a complimentary coaching strategy session here

If you found this valuable please share it on social media. Thanks

Until next time always remember " The More You C.A.R.E. The Less You Work"

Your real estate-based wealth coach,

Jeff Wood

P.S. When your ready here are a few ways I can help you start, scale, and manage your very own lucrative real estate investing company.

1. Join the C.A.R.E. community and connect with other real estate investors that are taking massive action. It's our new Facebook community where smart real estate investors connect, learn, and grow! Grow your wealth, Freedom, Impact, & portfolio! CLICK HERE to join today.

2. Book Recommendations. These selected books will help you build a solid understanding of real estate investing. See list now.

3.C.A.R.E. tool box. This is a list of free and/or low cost resources that every real estate investor needs to build a lucrative real estate investing company that will fund your desired lifestyle. Access your resources HERE

4. Work with me and my team privately. If you would like me to help you avoid costly mistakes and grow your real state business so that you can have the finances and time to fund your desired life let's chat. CLICK HERE to grab a complimentary strategy session. This way we can chat and get to know each other better. This is not a sales call I do NOT work with everyone. I want to see if we are a good fit and help you. If you decide you want to continue to work with me and you meet my criteria we can explore what that may look like. Because I am actively running my real estate businesses and value my free time I only work privately with a small select few every year. BOOK YOUR SESSION HERE.

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