This article was originally published on Grant Cardone TV and appears here with permission.
Investing in real estate assets can give you financial freedom, so avoid making these mistakes.
If you fail to plan, you’re planning to fail. If you’re not making an effort to learn how to do things the right way, you’ll be making these four real estate investing mistakes that will cost you tons of time and money.
Not being aggressive enough
There’s no such thing as being too aggressive. You can’t out-compete with other investors to put offers on properties without being aggressive.
If you want to become wealthy in this game – you have to get out there, talk to people, find the right deals and make them yours.
Selling owned real estate
I had an investment property in a small town that had been steadily appreciating for decades. Still, the housing market crashed, and my rental income couldn’t cover the mortgage payments anymore. I put it on the market to sell at a much lower price than what it would have been years ago.
Not raising money
Build up the capital to get into this game. Try capital preservation. You will not lose money. If your job pays you $60k, then you’re leftover with $10k/year after taxes, food, kids, and home. The key is not to lose your $10k and keep building it up to invest in real estate.
Buying within your budget
If you buy real estate based on your budget, you’ll have nothing. The problem with real estate investing in America is that the Middle class gets the leftovers when you stick within budget. Getting that cash flow will set you apart from getting mediocre deals to landing massive deals.
Use this formula:
The number of units is the most important thing when looking at properties.
Formula: # of units x cash flow + the time = future appreciation
Buying too many properties
When you try to invest in too many properties without taking the time to consider if it’s worth value, you will miss out on money. Focus on 2-3 incredible deals worth a lot that you know have immense value and will be profitable in the long run.
Do you want to learn how to make the best deals, use real estate as a financial vehicle for you, and learn how to make passive income? I’ll give you the blueprint for real estate success.
