In the game of real estate one can go broke in seconds, because the blinds (bets) are big. Real estate investing needs crucial decisions that needs to be precise and quick. One has to manage emotions, read other people and the goal is to make profit and/or maximize gains. One has to know how the other side of the table think (no matter if it is the seller, realtor, buyer, tenant, bank...). But most important: one has to know themselves. Mixture of luck and skill is needed. Yes, luck is a rare element to come up with when you need it the most.
If you are great at monopoly you might not be a great realtor or a great real estate investor.
One has to know how to use excel or a calculator but most importantly one has to be a people person. A simple smile can do wonders.
Most common mistakes in real estate investing:
- Not knowing yourself
- Not using your gut
- Ignoring emotions
- Doing nothing
- Betting too big and not knowing when to fold
In real estate bets are often big so it is good to make rational decisions. Know your limits and know when to walk away from a deal. Emotions and gut feeling can help the process especially because your decisions affect other people's lives. It can be an asset but it can be a nuisance. Be creative, be positive but be realistic and take action.
There is a false sense of security for being just too passive. In a way you just bleed out and pass many great opportunities. Just like in a poker game one does not have to have a great hand to win but it is unwise to sit out for too long. Same rule apply in real estate. And you don't have to find a gem right away. Seek opportunities knowingly. It is always easier to pass and wait but by roughing some feathers there might occur great possibilities. By doing nothing = nothing happens.
You don't have to have the best possible hand but don't bluff yourself and bet all in unless you know 100% what you are doing.
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