When people get into Real Estate investing for the first time, they generally are pretty Doe eyed. They have dreams of making it big but seldom have a realistic vision for what that will entail. It is not uncommon for people to face adversity when they enter any industry and those who are able to overcome the adversity are more likely to thrive.
I am always trying to help people set themselves up for success. The problems that come up during our everyday business dealings may seem routine to us but could represent a major pitfall for someone who is not used to dealing with them. The greatest pitfall I have seen is people not generating income quick enough and not having enough cash flow to continue with their aspirations. When this happens, many will fall back on the security of a full-time job. Most at that point will slowly fade away from the business, never to return.
Additional pitfalls I have seen are people running into title issues with no knowledge of their regularity and how to resolve them. Fear of rejection which leads to paralysis. Accepting bad advice from local “experts” in the industry. While these “experts” may feel they are offering sage advice, more often that not it leads new investors down the wrong path. Spending exorbitant amounts of money on Gurus programs. Unable to properly motivate themselves.
There are probably a million more. Which pitfalls have you seen new investors fall into?
