What do you consider to be some of the worst, time wasting or most destructive habits of new Real Estate Investors?
Looking at Loopnet :)
I think becoming fixated on one aspect of the process can be very destructive. For example, when I first started, my construction background caused me to do a bit too much rehab for some properties. Eventually I overcame this but slid into the equally damaging habit of being too cheap and allowing deterioration of my units.
I'm thankfully now at a happy medium. The whole "would I move my family here" notion is a good one to ponder regularly and not into the Trump Towers, but somewhere decent.
Ahh Loopnet. It's funny. I can find more commercial (office, retail) listings on the MLS than Loopnet in my area. Some of them on the MLS are actually great deals or at least starting points for negotiations.
The most destructive for me starting out was impatience. I was so ready for a deal that I bought properties I shouldn't have. I should have really understood an area better. I should have first been able to know what a great deal was for almost every property in my farm area.
The most destructive habit for me has been not taking action. Its easy to get overwhelmed with so much information and one doesn't want to make a mistake. Well, make mistakes and just start doing things because you learn from them.
Mistakes I've made :
1. Not making "being organized" my 1st priority. Put an accounting system in place; having a business plan (what types of properties you want to buy; how much equity and cash flow you want ; how you want to purchase -- cash/traditional finance etc) ; a strong plan for property management etc.
2. Buying properties that don't fit your plan - Getting excited / buying on emotion / putting wanting to grow ahead of finding the right deal
Last but not least :
The biggest mistake new investors make is spending too much time trying to find a property and not enough time trying to find people that can find properties for you. (real estate friendly agents ; wholesalers etc -- You can tell them what you want out of a deal . Follow up with them once a week and let the professionals do the work for you allowing you to work on other aspects of your business)
-- 90 % of your time should be spent on the 10% of your business that is most impactful --
@Westin Hudnall last but DEFINITELY not least! :). These responses are full of experience-based insight. Good stuff!
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