Why are real estate investors making these devastating mistakes today?
Surf a real estate investing forum for 5 minutes today and you’ll find countless case studies in outrageously horrific missteps, which if they haven’t yet, will cost many their life savings and potentially a lot more.
The new surge in interest in real estate investing has infected the nation. In some areas, it’s like almost an apocalyptic picture of zombies running around with an unquenchable thirst for buying properties. It’s just the brains that seem to be missing from the movie.
Every foreclosure or motivated seller is NOT a deal.
It’s OK to throw up a $322 million spec house if you have the spare change to do it and just want the bragging rights, but this type of extravagance isn’t the savviest real estate investing strategy for most.
Unfortunately it is sad to see so many new ‘investors’ make far more insane moves today. They aren’t just simply making poor acquisitions; they are betting their last dime on deals and counting on ‘delayed financing’ which never appears, they don’t know local real estate laws, don’t know how to qualify tenants, what makes a good buy, what can sabotage their ability to rent or sell, what makes a deal or what the real numbers are or will be, what improvements add value or take away from it, and they are buying properties with clouded title and non-performing tenants they may never be able to get out in time. It’s lunacy.
If you are going to bet all of your energy, savings, time, future and you children’s future on real estate investing don’t you think it is worth at least attempting to avoid these cringe worthy fumbles by investing at least a few hours in some quality real estate education to get it right?
Or don’t; go ahead and wing it, let some other real estate investing pro who did invest in their real estate education clean up and cash in on the mess you are leaving behind on your way out. Just keep this in mind when you are filling out that job application for a position flipping greasy burgers in a couple of years from now, if you aren’t too old to get hired.
At the same time, for the true real estate investing professionals out there; avoid the temptation just to cash in on the newbies and their lack of experience. Help them, guide them in the direction of a great real estate education course and protect the industry.