23 Mistakes NOT TO MAKE investing in Real Estate
I try and read as many articles as I can regarding real estate, investments, market status etc. I do this so that I can keep a pulse of the market – I believe this is what my clients need PLUS I have always thought that KNOWLEDGE IS POWER! So, recently I read an article by Jeff Adams. He writes a real estate investors column. Here are his thought – which I thought I would share.
The Japanese have a saying “fall down 6 times, get up 7”. With almost every situation in life, weather it be business, family, relationships, and/or money, if you adopt this attitude you will become unstoppable.
The following 23 mistakes are the most common responses that I (Jeff Adams) received when asked successful investors to talk about their past.
Read them, study them and don’t forget them. Anybody can receive information, it is the wise man that prospers by it and puts it to use.
1) Waiting Too Long to Start Real Estate Investing
2) Not Having a Plan
3) Not Requiring Written Repair Bids – Every Time
4) Not Charging Tenants for Damage
5) Not Screening Tenants for Eviction Risks
6) Paying for Repair or Construction Before 100% Completion
7) Paying Full Price for Late Repair of Construction
Allowing Your Real Estate Business to Run Your Life
9) Over-Improving a Property Bought to Flip or Rent
10) Running Out of Cash
11) Forgetting About Asset Protection
12) Over-Analyzing Property
13) Becoming Friends with Tenants
14) Underinsuring Property and Risk
15) Ignoring Cash Flow
16) Punishing Bad Tenants Without Rewarding Good Ones
17) Permitting Tenants’ Problems to Spoil the Positives of Real Estate Investment
18) Letting Rent Collections Get Personal
19) Only Looking at Properties When There Is a Problem
20) Missing Out on Special Loan Programs
21) Inability to Sell a Rehab Property or to Rent a Rental Property
22) Not Thinking of Tenants as Potential Buyers
23) Renting to Relatives
January 2nd, 2010 at 5:43 am
There is obviously a lot to know about this. I think you made some good points in Features also.