970: 5 Mistakes to Avoid When You Start Investing in Real Estate

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 12 June 2024

⏱️ 45 minutes

🔗️ Recording | iTunes | RSS

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Summary

Before you start investing in real estate, make sure you hear this episode. Almost every beginner ends up making these five big real estate investing mistakes. Some cost money, some cost time, but all of them cost you peace of mind and push you further away from achieving financial freedom. We’re breaking down these five big mistakes so you can avoid them and start building wealth faster! Dave Meyer and Rob Abasolo are back today to discuss the five common real estate investing mistakes to avoid. From buying bad deals to doing wrong calculations, getting stuck in analysis paralysis, and beyond, even our expert investors have fallen into these beginner traps a few times. However, their previous mistakes could make you money as they share exactly how to avoid these rental property investing pitfalls. If you want to invest in real estate but are stuck, scared that you’ll make the wrong move, jump into today’s episode and take notes. If you can avoid these real estate investing mistakes, you’ll not only end up richer but with far less grey hair than even the most savvy investors. Let’s get into it! In This Episode We Cover The five biggest real estate investing mistakes that beginners make (and YOU can avoid) Why even a profitable rental property can be the “wrong” deal for you The one thing that most new investors leave out when they’re analyzing real estate deals The “sacrifices” you can make to get the money for your first or next real estate deal Why you should NOT borrow money to buy your first investment property The problem with real estate partnerships and why they’re so easy to get wrong An antidote to analysis paralysis that’ll stop you from sitting on the sidelines And So Much More! (00:00) Intro (01:25) 1. Buying the Wrong Deal (05:57) How to Avoid Bad Deals (07:14) 2. Analyzing Wrong (11:09) 3. “Lacking” Money (23:23) How to Do Partnerships (25:49) 4. Getting “Stuck” (29:01) Escaping Analysis Paralysis (31:12) 5. Doom and Gloom (34:18) Talk to THESE People Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/real-estate-970 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Do you ever remember feeling really dumb when you were a new investor, Rob?
0:05.1	Yeah, and the first live and flip that I ever attempted, I thought I could do everything myself,
0:10.2	and so I tried to tile a little studio apartment that was under my house.
0:14.0	It took me eight hours to tile, I would say like maybe like seven, eight square feet.
0:19.0	So I finally, I went and hired a tile guy. I brought him in and I briefed him. I'm like, hey man, I tried to tile this. It took me eight hours and it was all like uneven and kind of lopside. He's like, you titled this little section right here in eight hours and I was like yeah and he
0:34.4	started laughing and I was like oh all right all right maybe I'll just hire the pros
0:39.4	faster next time and not try to do it all myself. Well that is about as classic a real estate story as I've heard because I think this is just common,
0:47.6	right?
0:48.6	It is a right of passage to make mistakes when you're doing anything and that is certainly true in real estate
0:54.9	investing and it's also what our shows about today we're talking about
1:00.3	classic newbie mistakes.
1:10.0	Welcome to the Bigger Pocket's real estate podcast everyone. I'm Dave Meyer.
1:11.0	And I'm Rob Abisolo, and today we're laying down the five most common mistakes that new investors make.
1:16.3	You're going to hear about which of these mistakes we've made personally, how we overcame them
1:21.5	and how to avoid them in the first place.
1:24.0	All right, let's do it.
1:25.0	So let's jump into number one here, which is buying the wrong deal.
1:29.0	Dave, what might buying the wrong deal look like to a newbie investor?
1:32.0	Well, I think when people talk about buying the wrong deal look like to a newbie investor. Well I think when people talk about buying the wrong deal,
1:35.2	they were ideas probably go straight to a deal that loses money.
1:40.2	And that is certainly not a good deal.
1:42.3	But I think there are other categories here too,
	...

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