If you are in the process of buying your first rental property or you are just contemplating becoming a landlord then you are either about to make decision of your life or the worse. Many people have dreams of making a fortune through property, but only a few last the course and go on to becoming seriously wealthy. If you want to become one of the rich few, then you had better avoid these 5 fatal mistakes.
1. Becoming Emotionally Attached to the Property
This is cardinal sin number one for anyone who is serious about making real money from property. Many people play at property investing but very few people make serious money from it and one of the reasons for this is that they become emotionally attached to their property purchases. This can be easy to do, especially if you have transformed a property from a wreck that nobody would want to live in to a home that pristine.
You may think that this will not be an issue for you when, but be aware that this is an issue for most people. It can hit you from many angles. For many people it comes in the form of the fact that they will not buy a property in an area that they would not personally live in or they will not buy a property that they would not personally live it.
While in some situations this can be a good thing, at the end of the day you need to be focused on your bottom line profit and your standards might be higher than most other peoples. The most profitable areas for you to invest in might be in locations where you wouldn’t live but where the rental yield is high and you have lots of descent people that just want a good clean property to call home and they don’t necessarily want all the extra’s that you think are essential in a property.
2. Listening to the Crowd
Being one of many and being part of the crowd is a powerful thing and very few people want to be an outsider. However, you need to keep in mind whether the crowd of people who are very quick to give you advice and tell you that you are crazy to even be thinking about buying your first rental property, are living the sort of life that you want to live.
Unfortunately for them, the crowd will end up working 40 hours + until they retire. They will be struggling to pay the bills all there life and then when they do retire they will have to live on a meager pension. Do you really want to listen to this crowd? Instead, of listening to them find the smaller group who are living the life you want to live and talk to and listen to them and find out how you can achieve what they have achieved.
3. Rushing into Your First Property Purchase
It is easy to rush into buying your first rental property because you just want to get the first one out of under your belt. While this attitude can produce good results and while, in my opinion, it is a far better attitude than one of someone who just sits on the side lines all there life and doesn’t take action, you still need to be cautious. Make sure that you have accessed the risks as well as the benefits of your first property purchase. The last thing you want to do is to rush into making your first purchase and then lose all your money and then feeling like you cannot make another purchase for years because of it. While you need to action, you need to also make sure the action is careful and considered and not rash and ill advised.
4. Not Being Educated
Your property education is a key to your overall success at property investing in general. It does not matter whether you are buying your first rental property or your fifty first, you need to make sure that you are equipped with the right knowledge and education to be able to do it in as risk free a way as possible. Our website goals are to help you to make the right decisions about which property deals are worth pursing and which are best avoided.
5. Giving up to Soon
If you are serious about buying your first rental property then you are part of a group of people that have started down the same path. However, of this group only a few make it to the promise land of financial freedom and success through property. The reason why more don’t make it is because they give up to soon. They will give you all kinds of reasons why they didn’t succeed and why they had to stop, but the bottom line is that they are just excuses and I can virtually guarantee that what ever it is that stopped them from being successful as a property investor, has been overcome by someone else at another time.**Nothing on this website should be confused with financial or legal advice. If you need this, or any other type of advice, please seek the help of a competent professional. In addition, because real estate laws change all the time and differ from state to state, and even city to city in the same state, everything in these pages should be considered general marketing advice and ideas. Please see link to full Disclaimer at the bottom of this page.