Biggest Mistake in Real Estate

Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

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Jeff CopelandBusiness Member

Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes

Honestly, I think the biggest mistake new investors make is analysis paralysis. Time is your best friend in best friend in real estate, so there is a very real cost to doing nothing (aka "waiting").

And a corollary to that is thinking everything is going to go exactly to plan, and freaking out or giving up when it doesn't. It never will. Your numbers and projections will never be 100% accurate, and there will always be unexpected issues and problems.

Real estate (in the sense of owning and holding real estate long term for real equity accumulation and generational wealth) is a get rich slow scheme, so you have to be in it for the long haul, be prepared to roll with the punches, pivot, and have multiple exit strategies, and realize that a single eviction or repair is not the end of the world. One the contrary: it's a normal, expected, everyday part of being a landlord.

Keep your eye on the prize.

Copeland Morgan LLC4.770 Reviews

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Jeff CopelandBusiness Member
Real Estate Broker · Tampa Bay/St Petersburg, FL · Member since 2015 · 1k+ posts · 2k+ votes
4y
Honestly, I think the biggest mistake new investors make is analysis paralysis. Time is your best friend in best friend in real estate, so there is a very real cost to doing nothing (aka "waiting").
And a corollary to that is thinking everything is going to go exactly to plan, and freaking out or giving up when it doesn't. It never will. Your numbers and projections will never be 100% accurate, and there will always be unexpected issues and problems.
Real estate (in the sense of owning and holding real estate long term for real equity accumulation and generational wealth) is a get rich slow scheme, so you have to be in it for the long haul, be prepared to roll with the punches, pivot, and have multiple exit strategies, and realize that a single eviction or repair is not the end of the world. One the contrary: it's a normal, expected, everyday part of being a landlord.
Keep your eye on the prize.
Copeland Morgan LLC4.770 Reviews
Website View Page
11 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
Quote from @Ethan Hanes:

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

My mistake is prioritizing buying for multiple cash-flow properties. Now I realized it's way better to put the money into one or two flipping project or STR market that I can enjoy.
6 Reply
Sergey A. Petrov
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Limiting yourself and creating unnecessary boundaries. Everything is an opportunity or could be made into one. And that thought is not just for real estate!
10 Reply
Daniel Denning
Investor · Atlanta GA, USA · Member since 2018 · 118 posts · 90 votes
4y
I agree with Mr. Copeland's response...Analysis paralysis, or just plain waiting, is my biggest regret thus far in RE. Even the seemingly small window of time of being in your early 20s vs. later 20s (or early 30s) to start investing can make all the difference. I didn't know that until I actually started investing, though, and got some myself in the game.
6 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
Quote from @Ethan Hanes:

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

Not keeping 50 or so of the 500 I flipped in the Cleveland markets ,HUGE mistake . I was all in 30k, with rents of 1k on avg, Now they are all selling for 100k ++++ AHHHHHHHHHHHHHHHH
7 Reply
Ethan Hanes
OP
Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes
4y
Quote from @Bob S.:

Quote from @Ethan Hanes:

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

Not keeping 50 or so of the 500 I flipped in the Cleveland markets ,HUGE mistake . I was all in 30k, with rents of 1k on avg, Now they are all selling for 100k ++++ AHHHHHHHHHHHHHHHH

Wow! That's crazy Bob. Hope you were able to recover from this! This goes to show that taking action is better than sitting. HAHA it's okay there will always be other investment opportunities out there! Don't beat yourself up too much.
2 Reply
Ethan Hanes
OP
Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes
4y
Quote from @Jeff Copeland:

Honestly, I think the biggest mistake new investors make is analysis paralysis. Time is your best friend in best friend in real estate, so there is a very real cost to doing nothing (aka "waiting").
And a corollary to that is thinking everything is going to go exactly to plan, and freaking out or giving up when it doesn't. It never will. Your numbers and projections will never be 100% accurate, and there will always be unexpected issues and problems.
Real estate (in the sense of owning and holding real estate long term for real equity accumulation and generational wealth) is a get rich slow scheme, so you have to be in it for the long haul, be prepared to roll with the punches, pivot, and have multiple exit strategies, and realize that a single eviction or repair is not the end of the world. One the contrary: it's a normal, expected, everyday part of being a landlord.
Keep your eye on the prize.

This is a great point. As an agent, I constantly hear this term, "analysis by paralysis". It's something I'm totally guilty of. Focusing on every small detail instead of just taking action! Crazy. I'm getting better at focusing on the bigger picture, but it's a learning process.
I also talk with tons of property owners who are also guilty of just "waiting". It's the classic example of staying in your comfort zone when getting outside of your comfort zone and taking advantage of an exchange or seller carried financing is a viable option. Anyway, enough ranting. Thanks for your input Jeff.
Ethan Hanes
Hanes Investment Realty
1 Reply
Ethan Hanes
OP
Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes
4y
Quote from @Carlos Ptriawan:

Quote from @Ethan Hanes:

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

My mistake is prioritizing buying for multiple cash-flow properties. Now I realized it's way better to put the money into one or two flipping project or STR market that I can enjoy.

Carlos, can you expand a bit? I'm confused by this.
1 Reply
Ethan Hanes
OP
Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes
4y
Quote from @Sergey A. Petrov:

Limiting yourself and creating unnecessary boundaries. Everything is an opportunity or could be made into one. And that thought is not just for real estate!

Good point. UNNECESSARY BOUNDARIES! I've never heard that term but definitely gonna start using it. Thanks Sergey!
0 Reply
Ethan Hanes
OP
Real Estate Agent · Westlake Village, CA · Member since 2021 · 64 posts · 41 votes
4y
Quote from @Daniel Denning:

I agree with Mr. Copeland's response...Analysis paralysis, or just plain waiting, is my biggest regret thus far in RE. Even the seemingly small window of time of being in your early 20s vs. later 20s (or early 30s) to start investing can make all the difference. I didn't know that until I actually started investing, though, and got some myself in the game.

Crazy. I know someone who bought their first STR condo at age 19... Crazy! I hope to get started here soon. I just need a down payment haha!
1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y

My mistake is prioritizing buying for multiple cash-flow properties. Now I realized it's way better to put the money into one or two flipping project or STR market that I can enjoy.

Carlos, can you expand a bit? I'm confused by this.

>>
It's in my early projection where to invest few hundred K. First impression is seems buying multiple cash flow with 2-3x CF than mortgage is good option to do. But my profit from flipping activity is actually much higher than buying out of state cash-flow properties. Now I'd rather flipping or buying STR , at least the STR is useful for retirement/vacation.

0 Reply
Lindsey Hughey
Texarkana, TX · Member since 2017 · 57 posts · 34 votes
4y
Started 10 years too late. Missed out on several homes that could have been purchased at a good price but hindsight is 20/20.
2 Reply
Dan H.Pro Member
Investor · Poway, CA · Member since 2015 · 7k+ posts · 8k+ votes
4y
I regret the properties not purchased much more than they worst property purchased. I lost out on one because we requested an estopppel instead of simply accepting counter offer (this was on property that was 6 digits below value). Lost out on one because seller would not address window issue. I should have paid for the window fix to close. Lost numerous for a small amount between my offer and selling price.

3 Reply
Lyndsay Zwirlein
Lender · Member since 2020 · 331 posts · 209 votes
4y
Starting too late and listening to other people's opinions who don't matter. People can be negative. Their story isn't my story. So I wish I would've asked around to more people and/or not taken certain people's advice. Find your people and find a great mentor! Keep going!
3 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
Quote from @Ethan Hanes:

Quote from @Bob S.:

Quote from @Ethan Hanes:

Hey all,

I was bored and wanted to ask everyone here what their biggest mistake was in real estate to this day. Something that you will never forget as your biggest screw up.

I haven’t had enough experience to have an answer to this question, but I want to learn from other people’s mistakes so that I don’t make the same ones!

Appreciate it.

Ethan Hanes

Not keeping 50 or so of the 500 I flipped in the Cleveland markets ,HUGE mistake . I was all in 30k, with rents of 1k on avg, Now they are all selling for 100k ++++ AHHHHHHHHHHHHHHHH

Wow! That's crazy Bob. Hope you were able to recover from this! This goes to show that taking action is better than sitting. HAHA it's okay there will always be other investment opportunities out there! Don't beat yourself up too much.

Oh I am not , keep in mind I did flip 34 mill worth, about 500 props so its not like I did it for free :) I also did keep some ,
3 Reply
Aj Parikh
Rental Property Investor · Centreville, VA · Member since 2019 · 1k+ posts · 799 votes
4y
The biggest mistake as cliched as it sounds is "not getting started". You can read, listen and analyze as many deals as you want but if you can't take action, its all worthless. Real Estate is very forgiving so the earlier you start making mistakes, the faster you will learn as an investor. Good luck in your investor and let me know if you want to connect.
3 Reply
Eric Bilderback
Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
4y
Should have house hacked a duplex or 4 plex every year until I had kids. I love watching young investors do that.
4 Reply
Dave SpoonerPro Member
Rental Property Investor · Cincinnati, OH · Member since 2020 · 869 posts · 823 votes
4y
The biggest mistake would be taking too long to make a decision. Set some goals, crunch some numbers, and make a decision. Don't wait too long. Like someone above said, "analysis paralysis" can really cost you!
[email protected]
1 Reply
Tommy Parker
Property Manager · Charlotte, NC · Member since 2022 · 269 posts · 135 votes
4y
Starting at a younger age!
0 Reply
Matthew Bowling
New to Real Estate · Worcester, MA · Member since 2021 · 63 posts · 48 votes
4y
Quote from @Sergey A. Petrov:

Limiting yourself and creating unnecessary boundaries. Everything is an opportunity or could be made into one. And that thought is not just for real estate!

I love this response! It's all about your mental framework.
0 Reply
Mose Gebremeskel
Investor · Member since 2022 · 234 posts · 144 votes
4y
Don't limit yourself! Don't hesitate to make a move and start as soon as possible.
0 Reply
Curtis Mears
Property Manager · Raleigh, NC · Member since 2014 · 728 posts · 596 votes
4y
@Ethan Hanes
I had an opportunity to buy a nice property but got to greedy on my offer. They sold to someone else.
0 Reply
Carl Dieckmann
Real Estate Broker · Northwest AUSTIN TX · Member since 2019 · 56 posts · 27 votes
4y
My first rental property, I didn't understand how the numbers worked. My tax returns showed a slight loss on the property even though it was rented at a great rate. I took this as if I was losing money, while in reality the home was appreciating, I had cash flow every month, the loan was getting paid down, and I wasn't paying taxes. I now know to use a rental property calculator to see how much I'm actually making... as for the original property, I sold it 15 years later for a great profit!
3 Reply
Haresh Patel
Investor · Irving, TX · Member since 2015 · 34 posts · 16 votes
4y
@Ethan Hanes Not buying more properties when I started. I bought a few and then W2 job got crazy so started investing in syndication. That has a place in the portfolio but wish had ploughed that money in SFR or small multis.
1 Reply
Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
4y
Freaking out over an inspection report. I walked away from a property in Nashville in 2011 due to 5-10k in repairs, which I probably could have negotiated to get partially covered by the seller. We were under contract for $108k. That property sold last year for $460k. Hi, my name is Travis. I'm a moron.
7 Reply

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