The Worst Mistakes Real Estate Investors Can Make Salt Lake City UT

While there are a lot of mistakes you can make with real estate investments, identifying some of the common mistakes ahead of time can save you a lot of time and money. The worst mistakes can involve not starting with the right frame of mind, to not  optimally  managing your cash and equity. See the following article from JasonHartman.com for more on this. 

Most investor mistakes stem from “self-sabotaging behavior” so the goal is to recognize and overcome this behavior. The right frame of mind is essential for success in real estate. Instead of a gambler’s mindset, typical of speculators and property flippers chasing after instant gratification, adopt a buy and hold approach - the source of genuine wealth creation. Experiencing great luck on your first try can actually be detrimental since luck is inherently unreliable and a poor preparation for reality. Adversity is a better teacher.

Here is a brief run-down of the worst mistakes committed by real estate investors and how to counter-act them:

Procrastinating

The paralysis that results from fear plays a major part when investors put off getting started. Preparation and education followed by implementation is the best antidote. “Don’t wait to buy real estate; buy real estate then wait” is how Jason puts it.

Failing to ask for help

While individual real estate investors won’t get to share in big federal bail-outs, on a smaller scale they may qualify for loan modification or other forms of assistance. But you have to ask first. Although it may seem a contradiction, Jason advises, “The person in power in a transaction is the borrower.”

Failing to have prudent faith in yourself and others

This attitude only lays the foundation for failure. The antidote is not blind trust but well-placed, informed faith balanced with healthy cynicism. On the same note, failing to think positively is another fatal mistake. Jason relates how early on he was influenced by Zig Ziglar’s “See You At The Top”, a ringing endorsement of the power of positive thinking.

Failing to use prudent financial planning

By assessing your tolerance to risk and establishing a time-frame for your goal it is possible to conquer the inertia that prevents progress and capitalize on momentum along with factors like time, inflation, and even government excess. Identify your objective, then practice “reverse engineering” to devise a course of action that will help you reach it.

Failing to diversify

The mistake is putting all your investments in a single market, vulnerable to changing circumstances. Broaden your horizons geographically. Instead of a backyard investor, Jason advocates being “area agnostic”, resisting marriage to any one market, regardless of how well it has served you.

Having too much equity in property

Because real estate, unlike stock investment...