TOP 5 REAL ESTATE INVESTOR MISTAKES TO AVOID IN 2012 REAL ESTATE GAME

TOP 5 REAL ESTATE INVESTOR MISTAKES TO AVOID IN 2012 REAL ESTATE GAME

REAL ESTATE INVESTOR MISTAKESI have been investors the majority of my real estate career. My entire radio show was focused on how to invest in real estate. I did my radio show for five years before I temporarily ended it last year for personal reasons. Now, I am honored to meet new investors each week when they come in wanting to invest in real estate. This is not my first rodeo. So, here are the top 5 mistakes that I see investors make regarding real estate investing:

  1. LONE RANGER MENTALITY-Investors think they know everything and can do everything themselves. Real estate is a team sport as expressed in Rich Dad, Poor Dad book series. The Lone Rangers of the world will get to the top. However, it will take them longer because they do not have a network to assist them.
  2. NO PLAN-Many investors do not create a plan before investing in real estate. That is a huge mistake. "Make the Call, Set the PLAN, and Do the Deal$" is my tag line on my radio show. First, we create the plan. Then, we do the deals. There is a natural order to follow.
  3. LACK OF PROTECTION-Many investors do not cover the proper insurance both personally and professionally. Furthermore, most investors do not have their properties in LLCs for a layer of protection in case of lawsuits down the road. Many investors continue to increase their investors. However, they do not protect their assets.
  4. OVERPAY-Investors will work with a real estate agent without asking their own experience. There is a lot of due diligence when it comes to researching investment properties. One must be skilled to judge the market and current market value. I have witnessed many investors pay too much for the property. Here is my motto"DO NOT PAY RETAIL."
  5. ANXIOUS-Real estate is a game of patience. It reminds me of playing chess. Most investors jump the gun too quickly. This costs them big time down the road.

Please review my list above and share some of your experiences when working with real estate investors.

Make the Call, Set the Plan, Do the Deal$!

Feel free to listen to my Radio Show to learn more about the phoenix real estate market, new trends, and the latest opportunities.  The Real Estate and Beyond Radio Show Airs every Saturday from Noon-2:00pm on Conservative Newstalk KKNT 960am in Phoenix, Arizona.  You can listent to past shows, or stream on-line.

 

Phoenix Real Estate Resource Center

 

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Comment balloon 5 commentsHarry F. D'Elia • April 22 2012 09:51PM

Comments

Harry - Great tips and suggestions for real estate investors.  They make a lot of sense and can really save people a lot of money.  Nicely done!

Posted by Laura Allen, Lake Tahoe - Truckee Real Estate for Sale TahoeLauraRealEstate.com, Tahoe Real Estate Agent Helping Buyers and Sellers (Coldwell Banker, Tahoe City, CA (530) 414-1260) about 7 years ago

Here to serve all real estate investors

Posted by Harry F. D'Elia, Investor , Mentor, GRI, Radio, CIPS, REOs, ABR (RentVest) about 7 years ago

I am not a stong believe in location, location, location. I am a very strong beleive in price price and price.

Very difficult to mess us, when a property is purchased at the right price.

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) about 7 years ago

Harry,

 

All good points, I remember doing all this when I was in the real estate investing business (well, actually in and out twice).....thanks for the pointers.

Posted by Daniel J. Brudnok, REALTOR, SRES, e-PRO,ABR,GREEN,CSP (Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038) about 7 years ago

Hi Harry -

I'm seeing investors listing as well as selling in the Albuquerque, Rio Rancho NM areas.  I had one of my investors call me the other day and say run the numbers for me.  The trouble with many investors is they have renters in them which can and often times does make it difficult to show.

Hope life is good for you and all you do.  Make it a great day!

John

Posted by John McCormack, CRS, Honesty, Integrity, Results, Experienced. HIRE Me! (Albuquerque Homes Realty) about 7 years ago

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