Like any extremely rewarding capitalistic venture, real estate investing can be your best friend or worst enemy. When catered to and paid the proper attention and dedication, your investments can provide a life beyond your wildest dreams. Conversely, if you aren’t up and up with your ‘game,’ as they say, you could be in for a long ride. We have compiled a list of six important mistakes to avoid when investing in real estate to get you started on the right foot.

Off-the-hip Planning

One of the worst mistakes you can make is not having a proper plan before making any real moves in your potential investment. It is extremely important to create the plan first, then go out and find the house or property that fits within that plan. People often get lost in the potential glamour of what they consider the perfect property or opportunity. It can only be perfect if it fits your plan.

Thinking it Happens Overnight

Making a successful real estate investor takes lots of research, learning, and planning. Some people may find it possible to get a couple of quick returns and make a little money here or there, but for those who wish to become large-scale investors and provide for our (or our family’s) future, this takes focus and, most importantly, time. The best thing you can do for your future investment is to spend time learning and planning.

Not Getting the Best Deals Possible

This goes along with research and taking the time to understand what you’re trying to accomplish. With the correct plan, you will know exactly what kind of deal you seek and what you need to do to obtain it. Never settle for anything outside your plan, provided that you’ve done the diligence and made it solid. Learning about rates and various forms of leverage can go a long way in helping you locate the deal that fits your plan.

Not Researching Thoroughly

We’ve repeatedly mentioned that you can never research enough. Understanding the current market trends and rates can mean the difference between a life-changing opportunity and wasting thousands, if not hundreds, of dollars. Also, not fully understanding the area you are trying to invest in can often prove detrimental. You want to ensure you know your plan, market, and location.

Not Running All the Numbers

Don’t be afraid to hire an accountant or consultant to ensure the numbers are always correct. We have spoken about and repeatedly discussed researching and having a plan, and one of the biggest parts of that plan is making sure that all the numbers “add up”..”

Not Having a Plan B

Real estate investing isn’t always sunshine and rainbows. There are some of the highest highs, but those are sometimes coupled with the lowest of lows. Part of your plan should always be a plan B. It would be great if all we had to worry about was how to look upward or forward, but realistically, we must be prepared when things do not go as planned.