147: Avoid these 7 common real estate investing mistakes

When you're just getting started with investing in real estate it's easy to get caught up in the overwhelm of everything there is to know.

You are learning everything on the fly and trying to put it into practice and it's easy to let things slip through the cracks.

We see it happen with new investors all of the time and admittedly we have fallen victim to some of these too.

So we’ve put together 7 mistakes that are often made by newbie (and even seasoned investors) to help save you from yourself!

#1 Not asking for verification of numbers

Be invasive.  This is your hard earned money that you’ve saved and plan to invest to help build your short and long term wealth.

#2 Underestimating maintenance costs

You want to account for this when you are running the numbers BEFORE you buy property.

Because those costs will eat into your net cash flow and actually make your return less than expected.

#3 Starting the eviction process too late

So even though you may want to give people multiple chances…

…remember that this is business and this is your money.

Follow your lease when it comes to starting the eviction process.

#4 Not screening tenants thoroughly

So my advice to you is take the time to really vet out your potential tenants.

Make the phone calls, pull the credit, do the background check.

Because ultimately you want to get the best potential tenant living in your investment.

The person who is going to take care of it like it’s their own and respect it and you.

#5 Not treating your venture as a business

A huge mistake that rental investors make is viewing this as a hobby and not as a business.

Even with just one property you need to begin to realize that it is a business and you are buying it to make money.

#6 Overestimating potential rents

So when you are running numbers on potential deals be sure to take time to research what properties are actually renting for where you are investing.

Don’t guess….do the due diligence.

While it may seem annoying in the beginning it’s only going to ensure you make a good investment.

#7 Underestimating the importance of cash

You don’t want to put everything you’ve saved into your investment and be left with barely anything in reserves.

First, if you are using financing the bank will required at least 6 months of reserves…but even still

I would recommend having even more than that available.

So tune in to hear us deep dive into each of these topics to save yourself from making these same mistakes!