THE 3 BIGGEST MISTAKES INVESTORS MAKE IN REAL ESTATE

Real estate has always been categorized among the top investment vehicles in the world. However, it also involves a lot of avoidable risks that come to play when you are not informed about the distinctions and trends of the market. At the time of invest your time and hard-earned cash, it is best to avoid these mistakes which are most often ignored. 

An experienced investor understands that there are basically 3 reasons motivated individuals fail in real estate:

1. Dealing with Unmotivated Sellers. 

This is one of the mistakes that experience helps to correct with time. Many times, you find new investors wasting time, energy, and resources trying to communicate with and convince barely motivated sellers. After spending some money on marketing campaigns, now you are getting calls from sellers, the temptation to want to convert all those leads into huge property deals is soon bound to come right after. Follow your plan and ask the important questions before burning through your time and gas driving out to see a property and a potential client who isn’t interested. If you burn through enough of your time and energy waltzing around with people who aren’t serious about doing business or ready to sell to you, you’re not going to be in business for very long. Striving to manage unmotivated people is like trying to pick fleas off a dog. It’s not going to be of use either to you or the dog. 

These are people you should keep at arm’s length at all costs. However, to maintain a deliberate distance, you need to know how to identify them, make sense of their game and move on.

2. Going after Dead-End Leads. 

Going after dead-end leads is similar to managing unmotivated sellers, and can be a huge waste of time and resources. One way to keep away from dead-end leads is by pre-qualifying each prospect as they come your way. Spending as little as ten minutes getting pre-qualifying data out of a prospect can save you many hours, which you would have spent in gathering information about a property you are never going to buy. What’s more, spending minutes to save hours is like putting money in the bank. Particularly, if the business has been slow, you tend to receive a phone call from a prospect and dash out to take a look at his or her home, hoping that it would lead to a successful deal. In that scenario, you’ll probably be out there getting estimates for the floor covering and doing your research before you know whether you’ll even get an opportunity to put the house under contract. What a complete waste of time that is. Carefully pre-qualifying a prospect will let you determine if any further activity is justifiable.

3. Depending Solely On One Marketing Channel. 

In this age, with a lot of cultural diversity, religions, demographics, occupations, work schedules, and interests, focusing on one or two marketing channels will limit your growth. People have grown to embrace many different things over time and to appeal to the larger market, you may need to increase the number of ways to reach out to them. Take a look at even the large companies delivering goods and services today, they don’t restrict themselves, and neither should you. As an investor, you can start with free and paid digital marketing campaigns on a few platforms, employ bird-dogs, join a community or network of real estate professionals, etc. Resist the thought of emptying all your efforts and budget into one marketing channel, and employ a robust well-rounded multi-channel based marketing strategy.