Did you know that most real estate “investors” never purchase one property? Fear is the most common reason that holds many investors back from taking the jump. Build a solid education from books, blogs, podcasts, webinars and mentors. There are 5 reasons why most real estate investors fail or decide to quit the mountain climb to financial freedom.
Quitting
The most common reason why real estate investors fail is the habit of quitting. Real estate is a long term process. Real estate is NOT a “Get rich quick” scheme despite the commercials and ads showing fancy cars and homes. Building financial freedom and a passive real estate portfolio takes years of consistent planning, patience and perseverance.
Bad Deals
Many real estate investors make the mistake of purchasing poor investment properties. There are a total of 324 markets in America. Pick one market and specialize in that specific area. Master the economics in your market. What type of jobs are in your local area? How many different job industries? What is the population growth in your area? What is the cost of living? Become the expert in one city and specialize in one type of real estate!
Run out of money
Do you have a 9-5 job? There are many benefits of having a 9-5 job as a real estate investor. The first benefit of a 9-5 job is it provides ease to qualify for a traditional mortgage from banks and credit unions. Most financial institutions require W2 employment. The second benefit of a 9-5 job is the salary allows an investor to live off of their employment income and store a percentage of money every month for their next investment property! Keep your 9-5 job until your passive income equals or surpass your employment income.
Lack of Focus
Specialize in one type of real estate and one specific city or area. This will limit the number of mistakes you make down the road. Become a master of your niche and area. Taking too many different projects on at one time leads to overdue project renovations. Every day a property sits vacant you lose money. Focus and master your niche and market to prevent losing money and making expensive mistakes.
No “Why”
Why are you investing in real estate? What motivates you to want change in your life? More time with your family? Do you want to travel the world? 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 to financial freedom and building a successful real estate portfolio.
Talking Real Estate Investing in Single Family Homes! 