Twenty Reasons Most People Fail to Make It as Real Estate Investors

As an author, I always strive to tell it to my readers as it really is. I do not believe in sugarcoating the truth. And that is why I want you to know that most people— more than 51 percent—fail miserably as real estate investors. I am telling you this not to discourage you, but to warn you about the consequences of investing in real estate in a haphazard manner. I attribute this relatively high failure rate to the fact that the real estate investment business does not have any of the so-called barriers to entry, which many other businesses have. In other words, there are no background, educational, competency-testing, licensing, insurance, or capital requirements to set up shop as a real estate investor. Anyone can enter the business at any time, without the slightest clue as to how to operate a profitable real estate investment business. As a result, most people usually fail to make it as real estate investors for one or more of the following reasons:

Reason 1: Paying above market value for property.

Reason 2: Lack of persistence.

Reason 3: Lack of organizational skills.

Reason

4:

Lack of local real estate market knowledge.

Reason

5:

Inability to stay focused on a single objective.

Reason

6:

Failure to act in a timely manner.

Reason

7:

No clearly defined exit strategy.

Reason

8:

Lack of capital and credit.

Reason

9:

Lack of clearly defined investment goals.

Reason

10:

Unrealistic expectations.

Reason

11:

Bad advice from unreliable sources.

Reason

12:

Lack of planning.

Reason

13:

Poor record keeping.

Reason

14:

Lack of self-discipline.

Reason

15:

Lack of basic real estate investment knowledge.

Reason

16:

Lack of patience.

Reason

17:

Lack of mental toughness.

Reason

18:

Inability to manage time.

Reason

19:

Failure to perform adequate due diligence inspections.

Reason

20:

Failure to prioritize tasks in accordance with their importance

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