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Posted over 10 years ago

Top Ten reasons the Newbie Investors FAIL

10. They underestimate the importance of location.

9. They don't verify the historical rent roll.

8. They are afraid to talk to tenants while evaluating investments.

7. They don’t check the plumbing pressure & type of water pipe coming from the street.

6. They can't recognizing a good deal or rely on someone who can.

5. They either over or under estimate repairs.

4. They’re tentative to jump into a rising market, when wasting time is costing them dollars.

3. They don't network with other investors.

2. They don't go to their local real estate investors group.

……………………..drums rolling……………………..

And the #1 reason why the Newbie Investors fail

1. They don’t bring a flashlight to evaluate property!



Comments (2)

  1. Nice list, @Mark Updegraff !

    I would add two more:

    1. Not focusing on a specific niche or business model. 

    2. Picking a niche that doesn't meet your personal strengths (i.e. "I'm a wholesaler" but I've never made a sales call in my life; or "I'm a buy-hold landlord" but I have $1,000 in the bank.) 

    Keep the lists coming!


  2. good list. I would add taking for granted any seller provided pro formas too