Real estate investing is a very exciting business. The success stories can get beginners so pumped that they would do just about anything to do a deal. Unfortunately anything is often a slew of mistakes which end with brutal results. Here are some vital mistakes to avoid and tips for real estate investors.
- Buy Right – Stick to your criteria. Sending 10 offers is not enough. It is a numbers game and often takes 100-500 offers just to land one deal. You should be doing only the best deals. It is recommended to implement a solid plan to get a ton of prospects into your pipeline, filter out the duds and write a ton of offers of the worthy prospects.
- Focus on one strategy – Become a master in one strategy and focus 100% of your time in this strategy. Let everyone else try 5 or more strategies and put 20% of the needed focus to become successful in a strategy.
- Have multiple exits – One exit strategy is not enough. Always have backup plans and multiple exit strategies. It is recommended to never go over 70% LTV and also have positive cash flow. Having both significantly mitigates risk and you have many exits that will result in a strong return.
- Have good teams and systems – Don’t try to do everything yourself. The most successful real estate investors are entrepreneurs and delegate as much as they can. Create win-win situations with your team members, create automated systems and delegate. You will then have time to do the things that will significantly improve your profits which are the entrepreneurial tasks.
- Make informed business decisions – 95% of people are followers. They believe all media and everything they hear. Is this information accurate? Not always, so be careful and do you due diligence. You wake up, put on pants and make decisions every day. Make sure to gather accurate information, justify sources and their information and you will be able mitigate a lot of risk and avoid unpleasant surprises by making informed business decisions.