Real Estate Investments Mistakes

Warren Buffet Quote

5 Reasons You are Failing at Real Estate Investments

April 19, 2019

Imagine investing time and efforts into opening up a new ice cream parlor. Opening day is a success and the cash is rolling in, however you have decided you are only willing to give the business a 25% commitment. After all, it is more work than you had initially planned and your heart is no longer in the ice cream biz.

Commitment:

As in any business situation, there are ups and downs. There will be days where passion is high and the world is on your side. Other days, not so much. You might question the validity of your business plan and doubts will arise regarding your own personal capabilities. Here's the bottom line: commitment is everything. A truly committed investor will stay the course through highs and lows and see a project through. The benefit of sticking with it is that experience is the best teacher for every investor, both good and bad. Having an attitude that says, "I'll do whatever it takes to make this successful" is key. Attitude is altitude and if your moral is at an all time low, prepare to be the casualty in your crash landing.

Perspective:

Think big-picture. Understand your plan, don't deviate from your plan and be stubbornly determined to see it through. Don't be your own victim and face reality head-on. Sounds cliche, but it's true!

Navigate the Pitfalls:

Plan on facing adversity as you achieve your goals. Challenges will occur and you should not be surprised by them. Investors who use challenges as excuses never know success. They struggle through them and learn from them. Find a mentor who will help to navigate the unexpected and propel you in the right direction. Your struggles will serve to fine-tune your skills and build your investment muscle.

Be Prepared:

It is easy to become passionate about a new idea or direction and launch yourself full steam ahead without properly preparing first. While this trait is admirable, it is unwise. In other words, don't quit your day job until you have done the research, found a solid mentor and you are fully prepared to commit yourself 100%. Vision is a great thing, however it is useless unless it is appropriate directed.

Be Willing to Grow:

Perhaps one of your investment properties is presenting you with nothing but obstacles. Don't wallow in discouragement! Work through the obstacles and look for ways to grow in the trenches. Discouragement can bog you down or it can teach you. Try to learn and fine-tune skills such as creative problem solving, budgetary issues and negotiation. Build your confidence as you learn knew ways to handle old problems that will inevitable occur again in future investment properties.

Bottom Line:

Ultimately, your success or failure depends on you, not market conditions, family situations or funding. Have a specific amount of time in mind that you'd like to spend on a select project and commit yourself 100% to seeing it through.


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