Real estate is one of the greatest wealth builders of all time, so it’s not surprising that people gravitate towards it … in droves. What’s even more alluring is the flexibility: you don’t have to be a tycoon or even a full-time investor to significantly supplement your income and rub shoulders with a high-powered network.
Do you want to be a passive investor, hands-on entrepreneur, or mogul in the making? Whatever that vision is, there are some common mistakes that can jeopardize your real estate career before it ever truly takes off.
Thomas Edison famously said, “I have not failed. I’ve just found 10,000 ways that won’t work.” While we could probably name thousands of mistakes real estate investors have made (us included), let’s start with the top three.
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For those who aspire to break into this industry, there really is no time like the present. We see so many would-be entrepreneurs dragging their feet, waiting for the “perfect” moment or enough zeros in their bank account before ever taking the first step. This phenomenon is also known as “analysis paralysis.” Real estate is a business that WILL require a (well-researched and risk-assessed) leap of faith.
Determine your investment strategy first, then seek out the deals that align with it. When you find that tailored fit, don’t hold back—even if it means reprioritizing travel plans or working through the weekends. Those sacrifices will pay off. Then, re-invest those returns to diversify your portfolio, earn more revenue, rinse, and repeat.
Ultimately, the train doesn’t wait just for you. If you spend years twiddling your thumbs, waiting to have enough money to invest in multiple properties at once, those lucrative first deals will keep blowing right past you.
This might feel like Business 101, but it’s always worth noting. Entrepreneurs are often touted as one-person shows, and many real estate investors are led to believe that’s a sustainable business plan. But every successful person has several consultants on speed dial or a highly skilled team behind the scenes.
They say your network is your net worth, and that holds true in the real estate industry especially. By tapping your network, you can gain so much more insight into deals, strategies, and potential partnerships than you would get otherwise. Networking isn’t only about sharing trade secrets but for sharing past mistakes. Learn from those cautionary tales, and don’t make the same mistakes yourself.
There are TONS of free educational resources out there as well. (Hey, you’re even looking at one now). Use them! Don’t have a network yet or looking to dive deeper? Join a mastermind group, find a mentor, and attend conferences—the relationships won’t build themselves overnight, but the effort will pay for itself tenfold.
We see this one all too often: investing careers that get left on cruise control. Corners are cut, and mistakes are made. Deals eventually go south. Fully commit to your due diligence process and never jump at anything without analyzing it thoroughly. Yes, even those investment opportunities that seem foolproof or *chef’s kiss* perfect.
Passive investors fall victim to this mentality too. Your sponsor will be doing the hard work, sure, but you need to stay privy to the latest real estate industry trends, news, market patterns, etc.
These mistakes can cost you time, energy, and (most notably) a lot of money. But the good news is that these career killers are easy to avoid, and we’re here to help.
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A master in Investment, Marketing, and Capital Raising.
Nic has honed his focus on the Real Estate and debt markets with Saint Investment Group and pursues large-scale Distressed Asset purchases with his partners and syndications.