As an investor and consultant, I often see newbie financiers make the same precise mistakes. As an outcome, I chose to create the following list to help amateurs understand what these common mistakes are and how to avoid them. The good news is that all of these mistakes can be easily corrected. The problem is that any among these errors will seriously limit your potential for success. In my experience, these are the 9 most common errors I see amateur investor make:
1) Not getting an education
Getting an education is an important part of becoming a successful investor. It's a lot easier and less costly to educate yourself than to make errors in the real life. We are lucky to reside in a country filled with academic opportunities for whichever undertaking we wish to pursue. Surprisingly though, not everyone takes the initiative to learn prior to they act. This exposes these individuals to expensive (and often career-ending) errors that might have quickly been prevented. Some misdirected people even complain that the seminars, courses, or books promoted by property professionals are too costly. I guess that depends upon where you stand. To me, they seem cheap compared to what I know can be earned in this organisation. Perhaps to an amateur however, they may appear costly. However as the saying goes, "If you think education is costly, attempt ignorance." Consider it. Is a $500 course worth it if what you learn just makes you $5,000 on a single wholesale deal? What if it could conserve you a mere $5,000 on a single rehabilitation? Or what if it assisted you create an extra $200 per month capital on a single residential or commercial property for simply one year? Would it deserve it to you? The worth of an education frequently does not expose itself up until you have actually stepped up to the plate and put yourself in the game.
2) Not getting an education from the right individuals
The internet is a terrific tool. It's also saturated with too much details - bad and excellent. Often, from less than credible sources. Do not confuse the details you discover on the internet as necessarily being quality information. For instance, there are a number of real estate investing newsgroups and blog sites that have proliferated the internet. Lots of so called professionals on these websites are more than willing to share adequate information to get you into trouble. Do you truly wish to get your information http://ciaramam70.nation2.com/10-compelling-reasons-why-you-need-investing-in-re from "rei-man-TX" or "investor-guy75?" Carefully think about whether these are truly reliable sources to be obtaining info from. I can't believe a few of the false information I've seen posted on these sites. Remember, anyone can publish on a newsgroup and anyone can develop a blog. But even if someone has a blog, does not indicate they necessarily understand what they're talking about. The misinformation you get may be pricey ... in either lost earnings or reputation.
Novice financiers might also get misinformation from friends or household members. Possibly they dabbled in genuine estate at one point. Now they feel entitled to tell you what little bit they may know about real estate investing.
3) Not taking action
Simply purchasing a wide array of genuine estate investing products or attending bootcamps isn't going to make you any cash. Some amateurs overlook to take action since they're still searching for that wonderful secret that is going to make it start raining offers. The real secret is difficult work!
Many newbies frequently attend their local property clubs. Associations and clubs are exceptional method to network with other like-mided people, learn strategies and methods, and have a good time. I've met countless club goers who have never done a deal before. Instead of utilizing the club as a spring board into taking action, they tend to utilize the club as a warm blanket because they fear being out on their own. When I meet these people, my advice to them is to stop relaxing with the other beginners talking about all the offers they wish to be doing. My guidance is easy, go out there and get some deals done. We all require an excellent education. That is only one action in the procedure. There is no replacement for effort.