While we believe that real estate investing is the best way to build wealth in America, there are choices that even the most dedicated investor can make to ruin their investment plan. Here are four common ones.
1. All talk and no action: In the business world they refer to a person like this as a non-starter. The chances of ever experiencing success with your investment plan increase exponentially when you actually make an investment. This means that, at some point, it’s time to stop talking and start doing. You have to pull the trigger on a deal.
2. Waiting until…when exactly?: Closely related to the first category is the person who has a plan for investment, the cash to get started, but is waiting for that one piece of the puzzle to fall into place before taking action. He wants to wait until he finished college, gets the big promotion, or the kids get older. Jason Hartman says, “Don’t wait to buy real estate; buy real estate and wait.” There’s a lot of wisdom in those words if you take the time to digest it. The short version is, “Do it now!”
3. Fear of Failure: Playing with scared money might be worse than never playing at all. Fear of failing is an epidemic among investors until they learn to take the long view. Even the best among us simply falls victim to the law of averages every once in a while. Did Michael Jordan ever miss a shot? Most certainly. Does Peyton Manning throw interceptions? Yes. Even the best investor with a perfect investment plan is going to brick a few deals. Get up. Dust off your pants and get back in there. Along with those bricks will be glorious, spectacular success.
4. Get rich quick: Anyone who goes into real estate or any other endeavor in life with the “get rich quick” mentality dooms themselves to a miserable existence. Sometimes people do manage to get rich quick but that’s a result of luck more than anything. Work hard, learn as much as you can, implement a solid investment plan, and enjoy the ride.
Did we say mention you should enjoy the ride? That’s the most important part.
The Commercial Investing Center Team
Flickr / Sistak