15 Mistakes a Property Investor Should Never Make

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Of course, this is far from a comprehensive list.

But, per the best real estate companies who regularly work with new market players, here are 15 mistakes a property investor should never make:

  1. Investing a large part of their capital in the same kind of properties and in the same city. Portfolio diversification is very important to minimize the risk factors.
  2. Saying “no” to investment opportunities in the international markets fearing loss and lots of legal work. Today, with a good real estate agent for beginners by your side, investing in overseas properties is easier than ever.
  3. Flipping properties to make quick money. While the process might look appealing, it’s far from easy. The beginners, unless they have adequate market knowledge, inevitably lose money in flipping.
  4. Trying to copy someone else’s investment strategies and style. It’s a big mistake. After all, their needs, requirements, and goals are much different vs. yours. Copying them is a bad idea.
  5. Not networking with other investors. Remember, opportunities in the real estate market aren’t always open to all. To know about these opportunities and make investments, you must network with relevant people in the industry and leverage their resources.
  6. Blindly investing in commercial properties. Indeed, hotels, shopping malls, and other commercial projects are safer comparatively, but they are far from fool-proof. In an economic downturn, you can end up losing lots of money if you’re not thoughtful in picking the right commercial property.
  7. Trying to do it all alone. This is something so many investors do and they end up with losses. Real estate investment and trying to build a high-worth portfolio isn’t a one-person thing. You need the right people by your side.
  8. 8.Once they realize they need to work with investment property agents or companies, the beginners usually hit the next big roadblock – they end up hiring the wrong professionals who lack the necessary expertise and experience. This happens due to lack of sufficient research work.
  9. Following every source of news available online and then making investment decisions accordingly. Needless to say, many of these news resources around real estate are unreliable that often spread market FUD.
  10. Working along with short-term plan and strategy. Building a high-worth real estate portfolio demands time. It takes years and decades even. If you’re functioning with short-term plans and goals, your investments would always fall short in yielding optimum returns.
  11. Not having a long-term plan and goal.
  12. Quitting their jobs too early to become a “professional” or full-time property investor. Many of the beginners are often not ready, both financially and psychologically, for this transition.
  13. Not making proactive efforts in learning and improving. Many of them take a passive approach, which significantly limits their growth potential.
  14. Trying to recover losses as quickly as possible. Understanding that in real estate, you’re going to make wrong moves; some of your investments will end up in losses. Reacting to such events emotionally where you try to recover your lost sum “quickly” leaves you with an even bigger room to commit mistakes.
  15. Following the crowd.

These are 15 mistakes a new property investor should never make.