Six Mistakes New Property Investors Need To Stay Away From

Getting adequately prepared is only the beginning. And even if you do everything right, you still need to have the correct investor mindset to avoid getting burned at the very start.

Here are the things to keep in mind:

#1 – Investing With Your Heart

In one of the previous sections, I mentioned that you shouldn’t refuse to buy a property just because you wouldn’t want to live there.

Much the same way, you shouldn’t purchase a property just because you became enamoured by it. Using your heart for decision-making is one of the most dangerous things for any investor.

You need to use logic and carefully weigh all the characteristics of a property to make an informed decision. This is where you need to assess the area demographics, vacancy rates, capital growth potential, and other metrics to make a sound decision.?

#2 – Not Planning Properly?

Taking the time to plan each and every step saves you a lot of stress in the long run.

Always keep in mind that your goal is to create a lucrative portfolio to give you financial freedom as soon as possible.

On that note, your plan should lay out the strategy to approach the property market exactly like that. Simply, if a particular property doesn’t bring you closer to your goals, you shouldn’t waste time on it.

Plus, it pays to consider different types of property (developments, subdivision, etc.) and assess their capacity to add to your portfolio.

#3 – Dithering

Dithering is among the most common mistakes with first-time investors. They get excited, venture into a?property, then never take the next step and invest in another one. And the reasons for this vary.

Some might be too scared, believing the risk is too high. Others make the wrong choice the first time round and?lose all motivation to proceed. But then, there are those who are satisfied with just one investment.

I don’t want you to be like any of them.

Your property portfolio has the power to change your life and finance forever. Don’t miss the chance to achieve that.

#4 – Speculation

Some novice property investors think it’s possible to become millionaires fast. That’s why they focus too much on?short-term gains, trying to squeeze every dollar from their investments.

However, this isn’t investing; it’s speculation that rarely ends well.

The reality is that it could take more than a decade to build a property portfolio that can give you financial?freedom. And yes, you’ll be boosting your cash flow in the meantime, but it won’t be the millions some expect.

That being said, specific properties might be an excellent quick flip. But remember, you’re in it for the long haul,?and quick flips may actually hurt your cash flow.

#5 – Wrong Property?

This is among the most common and most dangerous mistakes.

To stress yet again, you need to look for a cash flow-positive property in a good neighbourhood. Also, that?property needs to have the potential for high capital gains. Ideally, you’ll be able to rent it out immediately after?purchase.

Sure, choosing the right property is more nuanced than that. And by the end of this book, you’ll have enough?knowledge to pick just the one that fits your goals and current finance.

#6 – Failing at Cash Flow Management

It’s not hard to get caught up in the moment and forget to keep track of your cash flow.

And I’m not passing any judgement; it could happen to anyone. But it's vital to stay on top of all the costs?involving the purchase and maintenance of a property. If need be, you can ask for advice from a professional?accountant or a real estate professional like me.

In addition, some of the previous sections in the book list different fees and expenses associated with your?purchase. Therefore, it should be much easier for you to make a list of all the related expenses.

Are you a new investor looking to learn how to invest in real estate? Check out my E-Book, The 10X Property System! It's packed with all the information you need to get started in this exciting industry. Don't miss out - download your copy today!