Maybe you have read all the information on the market as it relates to real estate investing and you aware that many of the world's multi-millionaires made their wealth in the real estate rental market.
You may even feel like you are ready to start cashing in this lucrative market as well.
I want to share a few of the pitfalls with this investment strategy.
During your initial property investing you may want to purchase properties that do need many repairs unless you have experience in remodels and renovations.
If you bite off more than you can handle mentally, emotionally and financially this could be a disaster for you and your family.
Rental properties is one of my many field's of experience.
A good deal of what will be discussed here will relate to rental properties though some of the information can be crossed over into other types of real estate investment.
If you do not achieve the success you were hoping for you should not give up on the idea all together; simply learn from the mistakes you will make along the way and learn from the mistakes that others have made.
This is not rocket science.
There is no formula in this business that guarantees your success or anyone else for that manner.
Even the professionals will have the occasional bump in the road even on a property for which they had high hopes.
Stuff happens along the way that cost money, delay's your project, or set's the project back.
When these things happen go back to the original plan, reassess the situation and create a new plan with the necessary adjustments in mind.
Don't ever fly by the seat of your pants.
Follow your original plan! Period.
Throughout the entire project your plan will be your lifeline.
Keep this plan in your IPad or Smart Phone and have it with at all times so you can refer to it often.
One great rule of thumb that I and many have used is to set aside twice the amount of money you plan for in your budget if you are able.
Things can and will go wrong and this only gives you a safety net.
Different things go wrong on each project you will be working on.
If you watch DIY or HGTV you will notice even they have problems on almost every episode.
It's just part of the process.
Even your personal property can be a real estate investment.
Rental real estate is one of the few forms of investment in today's market in which you can actually see the changes as they are occurring.
It is miraculous to see a property that was once neglected and in a state of disrepair suddenly spark back to life right before your very eyes.
There is a lot of work involved in this process though and this is often overlooked.
If you keep these things in mind for your first time you should be well on your way to future success.
You should also realize that the first few investments are a learning curve more than anything else.