4 (Less-Known) Reasons Why People Lose Money In Real Estate Investment

investing in real estate

We know it! There are some rather very common real estate investments mistakes.

Following other investors blindly, not getting educated about the market, buying a bad property, not caring about property’s location, not having a well-defined plan…

Very common!

But there are a few less-discussed reasons, equally fatal, why real estate investing turns out to be a loss-fest for so many.

Are you a real estate investor?

Here are 4 less-hyped mistakes that you must sidestep:

1. Trying To Time The Market

You can’t time the market. Even when you have the best tools and a good amount of experience, trying to time the market will always turn out to be a bad move; you will always be behind it.

After all, was it that easy, every opportunist would be making millions annually.

So, instead of timing the market, you should map a highly defined system and then follow that system religiously despite the market fluctuations.

2. Flipping Properties To Make Quick Money

Flipping properties sounds cool. You buy at a low price and sell at high, enjoying big profit in a rather short span.

But then it’s not as easy as it sounds. In real estate, short-term motives, more often than not, ends up with losses.

Now, this doesn’t mean you shouldn’t flip if that’s what you’re aiming for. You’ve just got to be extremely smart and proactive in your decisions.

Recommended Read: Flipping Houses is NOT Easy – 2 Fatal Mistakes Beginners Make

3. Lacking Reserves

You never know when unwanted expense s will pop-up. In fact, one of the biggest mistakes many real estate investors are underestimating the maintenance cost.

No one knows when that roof might give up or that bedroom requires restoration. You can’t anticipate when will that heater bust or when can some legal trouble emerge.

To tackle all these untimed instances, you need to have sufficient amount of reserves. Else, it can hurt your long-term plans and cash flow.

4. Doing It All Alone

Investing in real estate isn’t an “I-will-do-it-alone” thing. To remain at the top of your game, you need the right people by your side.

You need good professionals and real estate investments company to assist you in making efficient decisions. You need to work with other investors to discover new opportunities.

So, if you’re planning to build a portfolio alone, while it’s not impossible, it is going to be difficult. You will end up making many mistakes, which would lead you to losses.


These are 4 less-known mistakes that many real estate investors mistake, which usually navigates them to irreparable losses.

Of course, in the dynamic market, a lot more could go wrong for the investors. In the same breath, they also get an equal amount of opportunities to make the desired returns. The only things that the market demand from you are informed decisions and patience.

Avoid the above four mistakes and you will be a step closer to having a high-value portfolio.