Advice: Read your contracts

[Brandon Diaz]

Big mistakes that new investors make (I made the same mistakes starting off) was not reading the contract or understanding the contracts. Both are very easy to fix... 1. Read the contract. 2. If you dont understand that word that is in the contract "google" the definition to that word. The document will miraculously start to make sense all of a sudden.

I lost $500,000 and 9 months work in my earlier years in this business. The mistake was made from "ME". I did not read the contract and trusted my business partners that they knew what they were doing (one had 28 properties, the other had LOTS of money) and I thought they were smart enough people that I would not need to do that myself. It was a costly mistake. 

Learn from every experience. Now, I read contracts. Now, I think ahead of situations and think 'what contracts would I need in this situation?'. Than I read different versions of that contract to see what kind of language is being used. 

That one mistake that costed me was also a very valuable learning lesson and has saved me since because I took action what I once lost, and it has since been something that I am glad that happened to me because I really understood what I learned from that. 

Homework: If you dont understand your (start simple) purchase and sales agreement, lease agreement, go ahead and read it. If you read it and cant remember the details. Read it again. 

I had someone ask me some questions and the problem to their solution was: read the contract and understand the contract. 

Thank you