Why Real Estate Investors Fail? The Five Top Reasons!
Why Do Real Estate Investors Fail? Investing in real estate is one of the best methods for making money and accumulating wealth. It is a fairly easy business to get into, and you can start with no to very little money.
The main thing to invest is time, since you can start with really not much money. And that is where most investors fail: time. Time management, time to learn and time to implement.It is also not a “get rich quick” business, contrary to what many business gurus try to sell or promote. It takes time and perseverance, but the rewards can be great. There are not many business with this type of income potential that you can get into for virtually no money.
However the failure rate for real estate want-to-be investors is really high. By observing the main characteristics of what causes failure, I have come up with this list of 5 top reasons:
Real estate is usually started as a side business, while keeping another job. However, many investors fail to treat it as a business and dedicate allotted time each day to learn and implement.
2. Fear of Failure
Like any other new business, there there is the fear of failing, but more so in real estate. With so many success stories out there and promises of making a lot of money fast by real estate gurus, who are trying to sell a program, there could be an overwhelming feeling of not doing it right from the beginning, and therefore seeing this slow start as a failure. Also there are fears of rejection and mistakes.
3. Fear to Implement
The first deal is always the hardest. “Paralysis of Analysis” – real estate investors are particularly prone to this. I have seen so many want-to-be investors attending countless seminars, spending thousands in books and program, but never getting the first deal going.
It is not a get-rich-quick business. After learning the fundamentals and getting started in real estate investing, there is a learning curve, with variable ups and downs. At this stage is where most of the real estate investors quit.
5. Invest in Education
Reading a book and getting started in the business is not enough. There are so many exceptions to the rule, legalities and things to take in consideration. Reading, attending seminars, are certainly very important and should be the first steps in helping you understand if this type of business is right for you, but having a mentor or coach in the beginning phase is almost vital – it can be the difference between making it or giving up in the business. Plus your learning curve would be much faster and you can take off on your own and profit at a much earlier time than going through countless trials and errors.
It is inevitable: you will make mistakes, there will be frustration, wasted time and money. Every successful real estate investor has gone through that, but what makes them successful is that they have persevered through it and found the solutions that work. That is why, it is important having someone who has already being in the business and experienced with different aspects of real estate holding your hand in the beginning and coaching you to overcome the 5 top reasons why real estate investors fail.
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