Confronting the Common Real Estate Investment Mistakes
Real Estate

Confronting the Common Real Estate Investment Mistakes

Starting a career in real estate is an ideal way to build upon your wealth – however, you cannot expect yourself to become an expert at investing over time.

Many people have struggled within this field because, as lucrative as it can be, not everyone has the skills needed to excel at it. You can only find a few people who have tried their luck in this business and actually managed to achieve success upon success every time. For example, let us consider Lloyd Segal – a revered real estate investor, author, mentor, and a national public speaker currently serving as the President of the Los Angeles Real Estate Investors Club.

Segal’s initial career started out as an attorney where he worked specifically in entertainment law and focused most of his work on aiding recording artists and music performers. He had managed careers of various prestigious artists that include the Flying Burrito Brothers, John Stewart, Leda Grace, Levi and Rockets, Byron Berlin, and many more.

In 1979 he received a Platinum record from the RIAA when the ‘Hot Child in the City’ has sold over a million records. In that same year, he started his record company, Regency Records, specializing in motion picture sounds tracks and rock n’ roll music.

However, in 1990 he closed Regency Records and devoted his focus to expanding his legal practice and his burgeoning real estate activities. He joined attorney Richard Sablowsky to form Segal & Sablowsky. However, after his partner’s death, Segal wrote his first book regarding real estate matters which further boosted his popularity. He became a guest speaker at numerous real estate groups, industry events, service groups and started buying distressed multi-million dollar properties in Los Angeles County. He started rehabbing them and then sold them off or put them up for rent.

In all his years of real estate ventures, he has noticed a common pattern of mistakes that real estate investors tend to make – and he talks about the following few.

Not Making Plans Ahead of Time

In real estate, many people tend to make the mistake of buying a property and then not knowing what to do with it. It can be tempting to indulge in investment when the market is hot, but you always need to be prepared with a plan beforehand.

Ensure that before you plunk down cash, you need to plan an investment strategy such as what kind of house you are seeking out to buy, etc. Once you have a plan figured out, you can then invest in properties that work according to it.

Not Doing Your Research

You might have noticed that anytime you purchase an item, suppose a television, you always ask about the different models, compare prices, and then determine which one is worth spending your money on. That same diligence should be considered whenever you are purchasing a property as well.

In that case, you need to devote more time to research so that you know the proper questions to ask to get the best property on the market. Additionally, you also need to consider the location in which your property is located as it plays a big part in knowing which audience you are targeting.

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