A thriving real estate investor solves other people’s problems. The more knowledge, ability, experience, contacts, and resources you have, the more solutions you can begin to offer people in solving their problems.
You will be ahead of the pack if you can get people calling or coming to you with their specific problem first. That means you have to advertise the fact that you are in a position to help while being fair, trustworthy, and accurate in making quick decisions before the competition tries to persuade these people first.
Mistakes New Investors Make When Getting into Pensacola Real Estate Investing:
Real estate investing “fever” has hit like a plague. Many beginner investors are jumping on the bandwagon trying to make a profit after losing big in the stock market. So what could you do to avoid losing?
Mistake #1: Stock Market Mentality
Nine of ten new investors are interested in real estate because they saw someone else make money from the rapid appreciation of the market over the last few years. But, buying Pensacola real estate solely for short-term appreciation is often a big gamble! If you buy Pensacola real estate to hold for fifteen years or more, the chances are that you will come out on top. If you buy a property and flip it in within a year, you’ll probably do fine, too. Investing is a lot like surfing; if you don’t know how to ride the wave, you will drown!
Mistake #2: Investing Blind
Pensacola real estate is one of the few investments in which risk is directly proportional to knowledge. Money for deals is easy to find if you can find good deals. But, you won’t know what a good deal is without having first invested in your education! The more knowledge of investing techniques, financing, acquisition, negotiating and, of course, your local marketplace, the less risky your investments will be.
Mistake #3: No Cash Reserves
Ask anyone in Pensacola real estate long term, and they will tell you the two most important words for survival are: cash flow. In order to stay in real estate long term, you need cash reserves. Buying Pensacola real estate nothing down is easy; handling negative cash flow, repairs, and other expenses in the meantime is the trick.
Mistake #4: Being Greedy
Many investors get started flipping properties to other investors, which is a good idea to generate cash reserves. However, you must be realistic about how much profit is in a deal. If there is a potential for a $20,000 profit in a rehab project, you can’t expect to make $10,000 flipping that property to a rehabber. A rehabber has a huge risk embarking in such a project and wants a large enough profit to justify the risk.
Mistake #5: Treating Real Estate as Anything Other Than a Business
People are lured to real estate because of the quick buck it promises. Don’t hold your breath–you won’t get rich quick. An “overnight sensation” usually takes about five years. More than 90% of the people who take a real estate seminar quit after three months. Why the high fallout rate? Lack of action and unrealistic expectations. Investing should be treated with the seriousness of a career. It takes months, even years for a business to cultivate customers and have a life of its own. You need to treat real estate like any other business.