Since 2008, there has been an extreme outflow of interest in the real estate market. As market returns continue to exceed expectations, more and more people look at the world of real estate investing. While there is money to be made, first-time investors should avoid a variety of roadblocks to reach their path of success.
I previously explored a few of these roadblocks, but here are two more to consider as you venture into your next investment opportunity.
Lack of necessary preparation
Fledgling real estate investors cannot hope to find success without proper preparation, and in many cases this notion spurs a desire to read up on the market and hit the ground running. However, the real problem is found in those investors who knowingly overlook preparation in lieu of bloated self-confidence — or who already think they are prepared, but are not. A large majority of new investors fail or quit due to delayed moments of clarity stemming from poor preparation, improper educational background, or a total disregard to stay mentally up to date on industry trends and shifts. Regardless of the scenario, a good rule of thumb is that over preparation is usually not excessive (at least when starting out); go the extra mile to give yourself the strongest foundation possible.
Improper definition of success
In the age of highlight real-style social media interaction, many of us have become conditioned to sensationalized (or even faked) displays of success — a “finish line first” mentality that focuses strictly on a major endpoint and not the small wins required to reach it. The point here — and this pertains heavily to the real estate investing market — is to avoid the temptation of mirroring others based solely on your perception of their success. It is key to develop your own investing style based on your unique experience level, the specific real estate situation in front of you, and ultimately your list of needs and goals. Investing can be a process, but it should be one that is personalized to fit your own idea of success.