Top 3 Mistakes Novice Real Estate Investors Make

If you are a novice investor just starting out in real estate investment or considering it, there are several points you should keep in mind if you want to be successful. Unfortunately, many novice investors make the same mistakes, which can lead to costly errors and sub-par returns. To help you avoid falling in the same pitfalls, I have briefly explained the top three mistakes novice real estate investors make & how to avoid them:

1. Not Doing Your Research

The decision to invest in real estate is a huge one and should not be taken lightly. You need plenty of time for consideration before you make any decisions with this life-changing choice, so do your research! There are several factors to consider that could influence your decisions and outcome, such as location, property type, and price. Taking time to do your research will help you avoid making an expensive mistake that could cost a lot more than just money.

2. Investing Without a Plan

Investing without a plan is another mistake novice investors make. Having an organized strategy will help you avoid costly mistakes and provide clarity on your goals for investing in real estate. A good way to ensure success when starting out would be developing forecasts about where we want our money to go after buying properties - whether it's saving up more cash to afford monthly rent and expenses or taking out loans against these assets. Lastly, make sure that you have figured out an exit strategy before making any purchases!

3. Not Understanding the Risks

Investing in anything naturally comes with risks. One of the risks associated with real estate investment is that your property may not appreciate at all or you may have to evict tenants. It’s important for you to understand these risks before making any decisions so as to avoid any unpleasant surprises down the line!

While there are many potential obstacles to investing in real estate, by taking the time to do your research, developing a clear plan, and staying informed about potential risks, you can put yourself in a strong position to succeed.        

If you're looking to venture into real estate investing, I offer 1:1 coaching to help you get started on the right foot. In our sessions, we'll cover everything from finding properties to financing and more. Check it out on the link below:

Cheers & see you next week!