I have been investing in the real estate for more than a decade. That being said, I have discovered 7 common mistakes that investors make that prevents them from being successful which are as follows;
1 – Marketing Limited
The first thing you need to understand is that you are in the marketing business. The real estate market is your product, and marketing is your business. The number one reason I see an investor doing a bad deal is the lack of marketing. Due to the lack of marketing, it all results in the lack of incoming leads. So you just feel free when it comes to marketing your product.
2 – Poor Relationships
The sooner you realize that this is a relationship business and that you need more relationships, the faster your business with succeed. When a person comes to me and says that his real estate business is struggling and I am not sure why, my first response is to enquire about his relationships. Your relationships must be good with your bankers, brokers, management companies, private money partners, other investors, trading partners and the like. If you want to evaluate the quality of your business, evaluate the quality of your relationships first.
3 – Lack of Analysis
Many investors never get to the point of doing the most important thing that they should be doing on a weekly basis to stay in business and it is putting in the offers. We all know that you cannot buy a piece of real estate without putting in an offer. So why don’t you put people in as many offers as you can? Or, why don’t you at least put in an offer per week? The reason is that they are not sure if they have analyzed the business properly and are afraid they have made a mistake. You should start looking at the properties and start creating offers whether it’s simple or multi-family properties, you need to practice creating offers.
4 – Lack of System
The more systems you have in your business, the more likely you are to have a real business. The systems allow a business to function while you are doing the two things you should always be focused on i.e. getting money and getting offers. Some of the systems your business needs include marketing, analysis, offering, closing, take over, disposal, employee, monitoring and contact management systems, systems. In fact, your entire business must be systematized for success.