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5 Worst Mistakes To Avoid as New investor in Real Estate. |
So I look forward to sharing with you what you can do to
make sure that you avoid those pitfalls, avoid those trial and errors so you
can crush it in real estate.
Today, we're talking about the top 5 mistakes that brand new
investors make and why their strategies flop and the deals and at the end of
the day, it's like they burnt their house down, they were the one holding that
match and they didn't even know it.
So today, Am going to
be helping you not do that.
- I'll tell you, if you can avoid these 5 mistakes, you can
see immediate success in real estate.
Now this isn't about get rich quick, this is about gaining
and producing wealth over time but these 5 mistakes will keep most people out
of the game and pointing at real estate and saying, "real estate
sucks" So I want to get you to avoid these 5 mistakes and move forward
effortlessly.
- Mistake number one,
No Margin.
Now just for a moment, think about what that means. People
will go into a deal and you need to have a winning strategy with either equity or
cash flow or the right system. You have to have a strategy and so what often happens
is, people are failing left and right because they walk in and they don't have
the right kind of margin on the property. Often that margin shows up with, for
example, equity. And equity means that when I buy the house, I should walk into
a certain amount of equity that says, "Wow, this is the right system, this
is the white right property and I'm starting on the right side up instead of
upside down."
- Cash flow is the Second One, Most people get into real estate and they don't
have enough cash flow off the bat. I know so many people that say, "Hey, I
just want to jump in, I want to buy a house and it pays me great, but if not,
I'll hang on for 5, 7, 10 years until finally catches up and starts paying
me." No. We don't do it that way, okay? If you want to do it
right in real estate, get cash flow starting day 1.
- Number three, poor
mindset.
Sometimes in your real estate journey, your real estate is
going to throw you a punch, there's going to be an unexpected repair, there's going to be a tenant that moves out, there's
going to be some damage to the property. When you're doing real estate, you
need to come and prepare for the unexpected.
And what I've seen happen too often working with investors,
is that they'll actually have a dynamite property and yet with the wrong mindset,
it's amazing what you can do. I once was sitting down with these two
individuals as couple that had come into the system, they bought two properties
and they came to me and said, "Uncle
B, we're so worried about the debt. We had leveraged our house to be able
to buy these two properties and debt is like the worst thing for us and
everyday we're just feeling horrible."
I know it's like the big bad monster in your life and guess
what? I said, "Well, tell me about your properties." "Well",
"How much equity do you have?"
"Well, this one, we've got a $50,000 equity position."
That poverty mindset, that poor mindset has the ability to
put your entire portfolio at risk. If you're going to hold on to a home for
seven years and something doesn't go right, for just one of the moments, you
got to remember how this whole story's going to end and cannot allow yourself
to get caught up in the moment with a poor mindset, where you put your real estate
of fire sale and end up burning everything down when you're actually on track. -
Absolutely.
The fourth mistake
that you need to avoid at all costs is having a bad strategy to begin with. Now you know as well as I do that you
can search the internet and find a
million and five different ways to
do real estate, right? You're
looking for the very best way to do real
estate. Not just the best way to do
real estate, the best way to increase
your financial freedom and you have
to have the proper strategy going into
it.
So many people look to their parents or they look to their
grandparents or they have a friend that jumped in some sort of investment and
they want to just kind of follow soon, let me just tell you right now, that's
not a strategy. That's not going into a plan, that's just following like a
lemming and you follow like a lemming and chances are, eventually, you're going
to jump off the cliff, alright. It's just going to happen. You'll fall down and
it's not going to be fine, you won't look pretty. So make sure if you're
getting into real estate, that you have a really cohesive and amazing strategy
in place.
- Okay, mistake
number five No mentor : You need somebody looking over your shoulder that
can shepherd you through the process that
is already been where you want to go. Right
now, we're in a society that's just, it's
all about do it yourself.
And the problem is, you read a real estate book or maybe
watch some videos and i want you out
there transacting real estate, I want you taking action but make sure you have
someone in your life that has your back. but it might be somebody that you know.
Get network in the real estate and if you're going to be flipping a deal, if
you're going to be doing a short-term buy and hold like we love to do, if
you're doing a lease option, make sure you have somebody with extensive experience
that's looking over your shoulder and along the ways, giving you pointers
because reality is, they've already probably stepped into the pitfalls and they
can help you avoid that trial and error by spoon feeding you the correct
information based on live experience, no video, no book can trump real life
experience. So make sure you have a mentor.
- So if you want success in real estate, if you want success
in financial abundance, if you want to grow yourself and you want to get pass
all of the naysayers and people that are telling you you cannot, if you want to
avoid the mistakes, then make sure that you're avoiding those five things. Make
sure that you're getting in and you're jumping in and you got the equity
positions, you got the cash flow going, you got the mindset running with you,
you got the strategy in place and that you're getting a mentor for you so that
you can make sure that you're going forward with nothing holding you back.
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