Real estate investing is an excellent way for anyone to build wealth. Investing in real estate means people can make a portfolio of assets that will appreciate in value over time and earn more money than a regular 9 to 5 job.
Although real estate has many advantages, it also comes with lots of challenges and pitfalls. Millionaire Noelle Randall says that some mistakes amateur investors make can lead to losses and get them into legal trouble.
Randall shares the top ten real estate investment mistakes and how to avoid them:
Working with Real Estate Agents
Real estate agents make money through commissions that are based on a percentage of a property’s selling price. They are trying to sell properties at the highest price possible. Real estate investors try to save and don’t want to overpay for the properties they purchase.
“Your primary focus as a real estate investor is: ‘How much money am I going to make on this property?’ and less about what school district the house is close to or the type of countertops the kitchen has,” Randall shares. “Real estate investors mostly focus on the numbers.”
She reiterates that working with real estate agents is one of the worst ways to get into real estate investing.
Working One Deal at a Time
Real estate investors who only work on one deal at a time are not maximizing their earnings potential. Randall recommends following multiple leads to increase the chances of closing a deal and making money. However, she warns investors to avoid potential dead ends since they are likely not worth the effort and are better off moving to the next lead.
Not Investing in Education
Randall says learning about real estate and any relevant strategies and legislation is crucial. She highlights the importance of investing in education, whether that be in the form of hiring mentors, taking classes, or reading books. She further states that not having a clue about real estate could spell losses and cause legal trouble.
Listening to Outdated Information
“Strategies that worked five or ten years ago aren’t going to work today. The landscape is different, and the legislation is different,” Randall shares. The real estate guru advises keeping away from outdated information as it may no longer apply in the current market.
Not Attending Social Events
Social events are great ways to grow as a real estate investor. Failing to attend real estate social events might mean lagging on trends or missing out on possible partnerships.
Non-real estate social events are also a great way to network with potential clients, as these can be an avenue to close future deals by simply handing out business cards or doing small talk.
Too many property visits
“An address is just an address. It is not a deal,” Randall says.
Randall advises real estate investors to save time and effort by utilizing technology and other resources. She suggests sending photos and videos to the investor instead of personally visiting the properties.
Not Following Up on Clients
Failure to follow up can result in a slew of wasted opportunities. A client may not be a closed sale immediately; however, they could earn investors a lot of money down the line.
Never setting up a business
Randall states that anyone looking to invest in real estate should start a business. “If you don’t have a business, then it’s you personally that is liable if anything happens,” she says.
Having a business protects an investor’s personal funds and helps them grow their portfolio faster.
Not Getting Business Credit
Randall advises establishing business credit as soon as possible. Real estate investors with business credit can get better terms and prices on loans, credit cards, and other financial services. This will also help build a solid business credit history, which benefits an investor should they plan to borrow money in the future.
Not having a millionaire mindset
“Everything starts with the mind, everything starts with the way you think,” Randall shares.
She states that mindset is the only difference between success and failure in real estate investment. Randall stresses that investors need to believe they can make money and be wealthy; anything less than that, they are likely to fail.
About Noelle Randall
Noelle Randall is a thriving entrepreneur with over 20 years of experience in real estate. She has written multiple books and maintains a YouTube channel that assists aspiring entrepreneurs in building their wealth.
Randall will also have her GROW YOUR WEALTH Investor Summit. This three-day real estate education conference includes a tour of real properties. This event is a great way to learn the ins and outs of owning a real estate business. For more information, visit www.GrowYourWealthEvent.com.
Learn more about Noelle Randal, her courses, upcoming events, and her coaching services through her official website: www.NoelleRandall.com.
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