Biggest Mistakes Aspiring Real Estate Investors Make

As an instructor of beginning real estate investors, one of the questions I’m asked most often is, “Why can’t I get started – what am I doing wrong?” Maybe you’re an aspiring real estate investor wondering the same thing. You’ve seen lots of others get going, yet you’re still sitting on the bench and wondering why. You aren’t alone if you are. There is usually more than one reason that keeps people from starting out. In this article, I will lay out the most common reasons why some people get going like “gangbusters” while others don’t. I’ll address one or two of the reasons here and explain more of them in follow up articles.So here are the top 5 reasons some aspiring real estate investors have trouble starting out. I’ve given them in the order I consider to be most relevant.• Listening to and buying into the “get rich quick” infomercial, webinar gurus.• Failing to get a PROPER investing education.• Not understanding the market fundamentals.• Fear of taking action.• Not making offers.In my experience as an instructor of beginning real estate investors, those are the top five reasons. I know there are many more, but let’s explore one of these right now. We’ll get to the other reasons in future articles.First mistake, and probably the biggest, is listening to and buying into the get rich quick infomercial or webinar gurus out there. Not only is this a big mistake, but it’s a colossal waste of time and money for the most part as well. Here’s why.Prior to the 70’s, real estate investing education consisted primarily of buying a property, fixing it, renting or selling it, and then learning from the profit or loss you experienced.In the late 70’s, and early 80’s we witnessed the birth of the “multi-day seminar.” These were advertised with full-page ads in newspapers, and held in hotels across the nation. Initially, these filled a need, but they also spawned a couple of other trends, namely real estate investor associations or REIA’s and the explosion of local, regional, and national seminars. All of these varied in content and quality. In the late 90’s and into the 2000,s the “webinar” gained popularity. Again, all of these vary in content and in quality.The one constant from the multi-day seminar all the way through to the webinars of today is that they are all a sales pitch of one sort or another. For the most part, the promoters of these webinars are trying to sell you their latest “course” or product, but more importantly they are “farming” for your email address. You see, that’s modern day, internet marketing. If you don’t buy whatever it is they are selling on their webinar, they’ve got your email address to bombard you in the future with other products they are selling. Some of them even make money selling your email address to other gurus enabling them to flood your email with their products too. In short, you learn very little (if anything) from most of these, and you are basically giving them your money.The RIGHT way to get started as a real estate investor is with a proper education. This includes the fundamentals, goals, ALL the different strategies available, contracts, negotiating, financing, exit strategies, building a team, and more. You won’t get that from the webinar or informational gurus out there.To summarize, your real estate investing education is the tool that can generate lots of money for you. If you make the wrong choice, your investment with infomercial or webinar gurus could wind up costing you thousands more. The old adage “you get what you pay for” is true in a lot of things. It’s gospel in real estate investment education. Get the proper training so you don’t make the biggest mistake a lot of beginning real estate investors make.