4 Reasons Why New Investors Fail!

” One of the most common causes of failure is the habit of quitting when one is overtaken by temporary defeat”- Napoleon Hill

Quitting

The most common reason why new investors fail is quitting. Yes, its that simple. Many people get into real estate investing with the wrong expectations and mindset. Real Estate investing is not a “Get rich quick” scheme. Investing in Real Estate is a slow process that takes patience, perseverance and planning. Start small, make mistakes and grow your business with the mindset that investing is a long term process. Real Estate investing is similar to chess rather than checkers. Every move is calculated. Run your numbers and make smart investment decisions!

Lack of Education

Invest in your education and continue to acquire knowledge on the process of real estate investing. Limit common mistakes new investors make by learning from other investors. Find a local mentor and pick their brain. Learn from their journey and mistakes. Invest in books, audio books, podcasts, webinars and seminars to gain a tremendous amount of knowledge and education before you purchase your first property. If your reading this, your taking the first step in your education. Read, learn and most importantly take action.

Not Building a team

Unless you have experience in running a real estate business, I recommend building a great team of experts who specialize with real estate investing. Many new investors put on all of the hats as the property manager, contractor, project manager, real estate agent etc. This will only lead to stress and eventually you will drain yourself from the amount of responsibilities it takes to run a successful investment business. The fee you will pay for each team member is completely worth the stress and time you would have if you did not commit to building a great team to run your investment business.

No strong “Why”

Why are you investing in real estate? What motivates you to want change in your life? More time with your family and children? Do you want to travel? Early retirement? Find your “why”! It is very important. Sometimes you will have a vacant property, broken HVAC, leaky roof and many unexpected repairs and problems that come with investing in real estate. Having a strong motivating “why” will help you persevere through the adversity and obstacles on your journey towards financial freedom and building a successful real estate portfolio.