Frequent Faults by Real Estate Investors

**Waterfront Specialist** · 01-06-2010, 04:53 AM

It is natural for people to plan things. Our children's college education and our retirement are two of the many future situations that we plan for. It seems natural that we should plan for real estate deals as well. A rookie investor may forget to develop a plan before getting involved in a real estate deal. What you do in the real estate market is up to you to resolve. It is in your best interest to have a outline for what houses you will buy and how you will sell them.

There is no method for overnight success in real estate. Most people dream of landing a million dollar deal and retiring all in one shot, but in reality, real estate investing is a steady progressive process. Progressing at a reasonable pace will eventually get you to your goal. Overnight success is not a realistic goal, but rest assured you will probably make a decent amount of money.

**First Time Home Buyers** · 01-06-2010, 07:12 AM

Planning is the most important step in RE investing.

I've talked with seasoned investors and agents who started off with no exit strategy, and are now stuck with 25-30 rental units they are managing themselves.

I always like to say "begin with the end in mind" and once you develop a solid and realistic plan all you have to do is execute it and you'll be ok.

**robertwhorner** · 05-06-2010, 08:10 AM

Paying too much when you purchase the property. Remember, you make your money when you buy not when you sell. Also, not sticking with your plan.

**amasters** · 06-08-2010, 02:24 PM

While I've financed a great deal of real estate I've never personally acted as an investor. If were, I would most likely seek a local mentor of some kind. But regardless, investing in real estate is something that takes a certain knack. It can't all be about the numbers.