Why Real Estate Investors Fail?

Investing in real estate is one of the best ways to create wealth. It is a fairly easy business to get into, and you can start with no to very little money.

However many new investors soon enough drop out of the business, get discouraged and frustrated. After working for several years with investors, I have compiled a list of common traits and obstacles, which seems to scare and stop investors in their tracks:

1. Fear holds them back - fear of failure: real estate is a business and like any other business it takes time to learn and implement, which takes us to the second fear. Fear to implement - paralysis by analysis: many prospects interested in learning about real estate study a lot about the business, attend seminars, spend thousands in courses and books, but never really get into the business.
2. Time management - real estate is usually started as a side business and it needs to be treated as a business and give it the time it deserves.
3. Education and knowledge - it can be overwhelming, but concentrating on one field at a time (like wholesaling, for example) and mastering it, will help make things easier and break down the business in more manageable pieces. There is enough money to be made in just a couple of fields, that the investor does not need to know the whole spectrum of the business.
4. Need advice and help - not being shy or afraid to ask for help and advice: that is why is important, especially in the beginning, to follow a mentor or coach.
5. Perseverance - it is not a get rich quick scheme, like a lot of gurus tend to portray it or misrepresent. The learning curve is quite steep or it can take a while, depending on what niche you get into. Also situations and problems will arise and having the resources and help to overcome them will assure a long lasting career in the business.

It is inevitable - real estate is a roller coaster. There will be wins and losses, frustration and results. Many investors start in the business, but the ones that are aware of the pros and cons of the business, set a plan of attack and resolution, are the ones who will last in real estate and succeed.

Laura Al-Amery is a real estate mentor and coach, who developed and maintains an online mentorship site at Lauraalamery.com