After 19 years as a real estate investor I’ve seen a few things which would make your stomach churn and the hair on you arm stand on end.

I’ve heard  just about every “great” investment idea and convoluting scheme and waded through the almost  full spectrum of so called real estate “gurus”.  

What I’ve discovered is lack of  success in real estate really boils down to the making of a few simple mistakes.

Mistake #1  Looking for the Ideal Property

Thousands of would be real estate investors search for that elusive perfect deal  that doesn’t require rehabbing.  You buy it as is and you sell it as is, only for more money

Of course, everyone else has overlooked  such a gem. 

The problem with this approach is it’s the long way around success and involves many needless detours. 

You need to practice  the most basic proven formulas for investing in properties.  This  centers around  finding the best locations, buying properties for less and selling for more, or keeping  and managing them  for future appreciation.

What you’re really looking for in a property is one that has a few things wrong with it.  With a little polishing or a few improvements, you can turn a profit.

Mistake #2  Focusing Strictly on Rehabbing

Many amateurs fall  into this dangerous hole  of spending too much time and money improving a property.   Why?  It’s fun.

Remember the key is  to find properties with only a few things wrong with them.  You certainly don’t want to tackle such monumental tasks as structural problems.

Don’t aim for perfection.  It doesn’t need to be perfect, just make sure it’s up to market standards. Whether you rent or sell, you don’t  have to make a show place out it.  This  will drain your potential profits faster than any other mistake. 

Mistake #3 Swinging for the Fence Every Time

This is the major difference between a successful real estate investor and one who loses.

Everyone wants to hit a “home run” every time they step up to the plate, but that’s mathematically impossible.  The investors who know what they’re doing are only too aware of that. You have to play the numbers.

You can win more often if you concentrate on the smaller, bite-sized victories.  Successful real estate investors know that by employing the fundamentals they can make a baseline profit more often then hitting the occasional home run deal.

I would personally rather have several properties bringing in  a steady income than to try to create blockbuster deals which will probably only come along once per decade anyway.

By concentrating on several smaller deals instead of one major deal you are spreading your risks   into different streams of income.   We call it stacking the cans. 

Mistake #4  Waiting for Buyers or Tenants to Come to You

Unfortunately the “ build it and they will come concept” doesn’t work with real estate.

But the good news is a lot of your competition doesn’t realize that.  They still hope if it looks great buyers or tenants will naturally flock to it. 

Get the word  out through realtors, signs, ads, and networking.  If you have a good deal to offer the market, many people will look you up just to see what you’ve got.  Then you can make the sale.

That can be a win-win situation for everyone.

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