I recently came across another blog that provides some insight into how you can quickly get in over your head if you try to bite off more than you can chew as a new real estate investor.
The http://www.iamfacingforeclosure.com/ blog details the pitfalls you may face if you fail to understand how complex real estate investing can be. Here is the profile of the investor in his own words:
"I'm a 24-year-old aspiring real estate investor from Sacramento CA. After going to few seminars I bought 8 houses in 8 months across 4 states with no money down. I fixed and sold 2 and then ran out of cash. I am now facing foreclosure on 5 houses. I'm learning my lessons, finding solutions and blogging about it. Comments appreciated!"
The positive aspect of this account is that the investor takes responsibility for his actions. In his blog, he lists his mistakes and he seems to be trying to put together a plan to overcome his hardship:
"I was amazed that people mistake my honesty for a scam. I went from being embarrassed and distressed about my situation to being confident about overcoming it, learning from it and sharing it publicly. Maybe it's my new-found confidence that made people suspect it to be a scam. Nevertheless, I still feel down about the whole situation and feel sorry for making bad moves this year that caused me to get over-extended. But, instead of crying about it I decided that I will be writing about it."
My advice to you is to learn from this investors mistakes. You need to understand every aspect of real estate investing before you dive into this sometimes complex market. Make sure that you understand:
- What You Buy
- How You Buy It
- Who Will Help You Buy It
Our goal at www.InTheNumbers.com is to help make you a smarter real estate investor. If you map out your strategy, put together a solid plan and build a strong network of resourcess, then you will be successful. The most important lesson you can learn from this failed investor is that you need to start small. You will also make mistakes...the key is to learn from these mistakes. You should never bite off more than you can chew when you are just getting started! The successful investors develop and stick to a long-term real estate investing plan. Most investors that I know did not "get rich quick." In fact one of the most successful investors I know, started buying multi-family properties when he was in his thirties. After twenty-some years of investing, he now has over 640 units that are worth over $40 million! Just think what it would be like to know that you have over $40 million in assets by the time you are 50! What a great retirement plan. InTheNumbers can help you realize your financial dreams by providing superior real estate investment resources, tools and education. We will apply the time and energy toward providing the very best services to our customers. If you afford us the opportunity to serve you, please know we will apply every effort to help you succeed. |
