Acting too impulsively or being overly cautious and never acting

3 Replies

Two of the most common traits of budding real estate investors who never make it beyond their first property (or sometimes never even make it to their first!), are either acting too impulsively or being overly cautious and never acting at all. The first is being in too much of a hurry. They think they have to have it all yesterday. The second are procrastinators and their own worst enemy.

I think paralysis analysis plays a bigger part in non investing
Another factor is that investors look at rosy numbers on a proforma yielding high cap rates but never visit the neighborhood of their rentals.
A bad experience ruins any further investing

Actually, the reason for both is the same...lack of preparedness.  They don't know how to analyze properly, and are either unsure of any analysis they have done (and make no moves), or that poor analysis causes them to do something foolish.

I can speak for myself and say that purchasing my first property (even if it is an owner occupied) will be nerve racking. It is such a huge investment to make when you buy your first property especially if you are going to subject to renters who dont care as much about it as you do and could destroy your baby.

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