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1) Listening To The Wrong Advice
Robert Kiyosaki said, “The most expensive advice in the world is free advice.{” This is the advice you get from your inexperienced and uneducated family and friends~This is the kind of advice you get from you uneducated family and friends}. {Many rookies fail to search out credible sources for advice – this is a critical mistake~Many rookies who fail do not find the right mentors to help them - this is a critical mistake}. {Especially for a newbie real estate investor~Especially for a rookie real estate investor~Especially for a brand new real estate investor}.
2) Never Taking Action
Many rookie real estate investors never get past the “Barnes and Noble Stage” if you get my drift here. {These people will read countless books and listen to all the tapes on real estate investing, but never take the plunge and get into the game~These people read all the books and listening to all the tapes (CDs) on real estate investing, but never get out of first gear}.
3) Wasting Your Spare Time
The majority of those who struggle have to have a job in order to support themselves. {A job requires most of your time~A job demands most of your time and attention}. {But regardless of the job and its responsibilities, everybody has a certain amount of spare time – free from obligation~We all have a certain amount of spare time - free from obligation}.
{Most rookies do not take advantage of this time and therefore suffer the consequences~Most rookies do not know how to manage this time and therefore suffer the consequences}. {Jim Rohn says that we all should schedule time every week to search out new opportunity~Jim Rohn says we should plan on searching for new opportunity every week - make this a habit}. {How are you going to discover new opportunity if you’re not looking for it every week~How are you going to find new opportunity, if you’re not searching for it every week}?
4) Not Having A Clear Purpose
In my opinion, 97% of people don’t write down their goals so I can safely say that even a smaller percentage have taken time out to define their purpose. {If you don’t have a clearly defined purpose, how can the rookie actually know what’s important and what’s just standing in the way~If you don’t have a clearly defined purpose, how can you know where you are headed}?
5) Not Having A Plan Of Action
This one is very simple. {Anything of any relevant or importance must be written down and carried with you at all times~All relevant information must be written down and carried with you at all times}. {No exceptions~Make no excections to this rule}.
6) Buying In The Wrong Neighborhood
Just because the price is cheap doesn’t make something a deal. {If there is trash all over the street and in the front yards of houses in the neighborhood, step on the gas peddle and keep on truckin~If there’s trash all over the place, hit the gas and keep on trucking~If there is trash all over the place, you’re in the wrong neighborhood}.’
7) Paying Too Much For A Property
Most pre-foreclosure rookies fail to learn the basics of investing.{Never pay more than 50% of the after repair value of a property~Never pay more than 50% of the ARV (after repair value) of a property}. {Especially in today’s market~Especially right now in today’s market}.
Negotiating With An Unmotivated Seller
If there is not a compelling reason to sell the property – punt and move onto the next opportunity. {Don’t make the mistake of trying to negotiate with someone who’s out to win~Don’t waste your time negotiating with the wrong person}. {You will always lose~You’ll always lose~You’ll always end up losing}.
9) Not Creating The Correct Legal Entity
I am not an attorney so please consult someone locally before attempting this. Whew! {Glad I got that out of the way~Happy to get that out of the way}.
{The best legal entity to hold investment real estate in is a limited liability company (LLC)~One of the safest ways to take ownership of rental real estate is in a limited liability company (LLC)~One of the most popular legal structures for owning rental real estate is the limited liability company (LLC)}. {These legal structures will protect you in case of lawsuits down the road~These legal entities will keep you safe from any nasty lawsuits in the future}. {Most rookies fail this part of the test~Most rookies make an “F” on this part of the test - and there are no make ups}.
10) Not Having Adequate Funding
Regardless of your funding source, make sure you have access to capital when the need arises. {If your renovation project goes over budget, you need to be able to complete the project and put the house on the market~If you’re renovation goes way over budget, you have to be able to finish the project, no matter the situation}.
{If a rental unit goes vacant for an extended period of time, you need to be able to cover the property until you get it rented~You need to have the resources in place in order to cover a property when it goes vacant for an extended period of time~Take action now to have the cash on hand you need to cover those properties that go vacant for extended periods of time~Cash is always king - make sure you have enough of it to cover those vacancies}. {Having the needed money here is critical – this is probably one of the biggest reasons rookies fall flat on their face~Having the needed fuding in place is very important - this is one of the main reasons rookies fail to make it~Having the necessary funding here is crucial - this is definitely one fo the biggest reasons rookies fall flat on thier faces}.
11) Not Having A Mentor Or Someone To Go To In A Pinch
Finding a mentor may take a while, but it’s well worth the investment of time and effort in order to find one. {Look locally in your city or community~Look for this on your local community}. {You can also go online and search there too~You can search the Internet and find it there too}.
12) Not Learning The Fundamentals First
The fundamentals don’t change. {You have two skill sets, technical and entrepreneurial – you need to have a firm grasp on both~You need to develop two skills sets, technical and entrepreneurial - you need to master both}. {Set up the investment company correctly in the beginning, develop and implement solid systems and build a great team around you~Set up the real estate investment company the right way in the beginning and build a great team around you}.
{This mistake could crush you~This one mistake alone could crush you~This one mistake could send you down the river for good}. {Don’t ever quit your job until your passive income from your real estate investments is at least 30% more than your monthly living expenses~Don’t quit your job until your passive income is at least 30% more than your living expenses every month}. {Also, make sure you have at least 6 months of expenses on hand in a reserve account~Build up six months of expenses in cash just in case of an emergency}.
I hope you enjoyed reading this article! http://www.VideoSuccessSystem.com
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