1. 5
Rookie
Mistakes
of
Real
Estate
Investing
By
Giro
Katsimbrakis
November
12,
2013
A
lot
of
people
will
tell
you
that
real
estate
investing
is
easy,
and
they’re
half
right.
If
you
do
your
due
diligence
and
create
a
good
strategy,
you
can
get
a
good
return
on
your
investment
without
too
much
blood,
sweat,
and
tears.
However,
there
are
all
kinds
of
mistakes
real
estate
investors
can
make,
especially
beginners.
Here’s
a
list
of
5
mistakes
a
lot
of
novices
make
when
they’re
first
starting
out.
Don’t
let
any
of
these
happen
to
you!
1. Idle
speculation.
A
lot
of
beginners
listen
to
voices
out
there
in
the
media
and
buy
a
property
at
or
above
market
value
hoping
it
will
appreciate
because
somebody
said
it
might.
This
is
as
unreliable
as
playing
blackjack
or
betting
on
horses.
Don’t
do
it.
Buy
distressed
properties
(70%
or
less
of
market
value)
guaranteed
to
create
cash
flow.
2. Getting
emotional.
Many
newbies
hardly
spend
any
time
at
all
locating
a
deal
that’s
right
for
them.
As
soon
as
they
find
a
prospect,
they
fall
in
love
and
bend
over
backwards
to
get
the
property.
Resist
this
temptation.
Get
as
many
prospects
that
fit
your
criteria,
filter
out
the
doozies,
and
pick
only
the
best
deals.
3. Risking
too
much
(of
your
own)
money.
Newsflash:
Real
estate
is
an
OPM
industry.
That
stands
for
“Other
People’s
Money.”
Always
strive
to
minimize
how
much
of
your
dough
is
on
the
line,
and
make
sure
you’ve
got
reserves
in
case
the
deal
hits
the
fan,
so
to
speak.
4. Being
unprepared.
When
things
go
awry,
would
you
rather
have
one
exit
strategy
or
many
exit
strategies?
If
you
can’t
flip
a
property,
your
world
can
turn
upside
down
over
night–you
can
get
behind
in
payments,
lose
the
property,
and
even
your
credit.
Don’t
let
this
happen.
Buy
below
the
market
so
you
always
have
numerous
options–selling
retail,
selling
wholesale,
lease
option,
seller
finance,
refinance,
or
rent
and
hold.

2. 5. Buying
in
war
zones.
As
I’ve
said,
below
market
value
is
the
way
to
go,
but
some
deep
discounts
are
too
good
to
be
true.
Sure
you
found
a
$70K
property
for
$25K,
but
is
it
surrounded
by
glut
and
foreclosures?
Will
it
get
vandalized
while
you’re
trying
to
make
repairs?
Is
there
any
actual
interest
from
renters
or
buyers?
Make
sure
the
demand
is
strong
before
you
commit.
One
more
bonus
tip
for
you:
Don’t
attempt
to
DIY.
Some
people
can’t
stand
the
idea
of
someone
else
giving
them
advice
or
sharing
their
responsibilities,
but
if
you’re
just
starting
out,
nothing
will
be
more
crucial
to
you
and
your
success
than
a
team
of
experts
who
know
the
ins
and
outs
of
the
business
and
are
there
to
support
and
guide
you
through
your
first
few
steps.
With
a
qualified
and
proven
team
like
Giro
Katsimbrakis’
DPW
Properties
or
NMIG
at
your
side,
you’ll
be
making
money
in
no
time.