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6 Mistakes New Real Estate Investors Should Avoid

One of the biggest complaints in the real estate industry is that it is too difficult for beginners to
find quality information. According to experienced investors, most articles and books target
only advanced investors who already know their way around the market.  
There are several common mistakes that new investors make when they first start real estate
investing. The six most frequent mistakes are discussed below:

  1. Not Understanding the Market
    Investing in real estate is a fantastic way to make money, but only if you understand the market
    and what is happening with all properties. If you ignore prices and the current state of the
    market, for example, the prices of Dubai real estate currently, you’re going to have a hard time
    finding deals that are good enough for an investment. You have to be willing to watch
    properties until they meet your criteria.
  2. Not Being Ready To Work
    Many people jump into investing thinking that all they have to do is find some deals and then
    hire somebody else or flip it over quickly so they can chase more deals. While this might work
    out for a little while, it comes with many risks, and you could lose everything you have worked

for. When it comes down to it, investing in real estate is a job, and if you aren’t ready to work, it
will not be worth your time.

  1. Making emotional investments
    Whether we like it or not, human beings are emotional creatures, and we often make decisions
    based on our emotions rather than facts and data. When new real estate investors make
    emotional decisions, they put themselves and their finances at risk because poor emotional
    decision-making leads to poor investment choices; those investment choices lead to losses;
    those losses lead to financial stress, and too much financial stress leads to extremely
    unhappiness.
  2. Not Saving For Emergencies
    If there is anything, we all need more of its money. Suppose you don’t save up enough money
    for emergencies, especially unforeseen ones such as losing your job or another financial crisis.
    In that case, your real estate investments are probably not going to go well at all. Each month
    make sure that you find a way to set aside some money so that when something unexpected
    happens, like the furnace breaking or the transmission needs to be replaced on your car, that
    you can handle it. Just a little bit can make a massive difference over time.
  3. Believing that all real estate is good real estate
    While it is true that real estate can be a fantastic investment in suitable locations, not all
    markets are created equal. According to many experts, when choosing an area for potential
    investments, you should look at employment rates, income levels, and interest rates. When
    these factors are high, there is usually little risk associated with the area; but potential returns
    will also be low when they are low.  Be mindful about where you invest because making lousy
    investment choices can lead to financial ruin!
  4. Not finding good mentors or coaches
    The complexities involved in perfecting the acquisition of properties have led some investors to
    seek professional assistance from land development consultants who may already be invested
    in the specific geographical region of their choice. A competent consultant can easily map out a
    successful, comprehensive, and risk-reducing plan for their clients.
    Wrapping Up!
    All in all, the common mistakes new investors make when they first start can easily be avoided
    by taking things slow, staying focused and well-informed, keeping an open mind, and forming a
    plan.  If you follow these simple rules of thumb, you’re bound to have much more success with
    property investments than those who don’t.

The key to successfully achieving your financial goals is to work with more experienced people
than you when it comes to real estate investing.  Whether it’s finding a mentor or coach,
sharing ideas and strategies on forums, etc., there are plenty of opportunities out there for new
investors who want to learn from those who have come before them.  Take some time today to
start learning.

Submitted by:

Dubai Real Estate

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