5 Worst Mistakes To Avoid as New investor in Real Estate.

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.