3 Common Mistakes I Have Seen Real Estate Investors Make (Myself Included).

These are the top three mistakes that I see new real estate investors make. Number one is they think they need millions of dollars to start investing real estate. You don't. I know lots of people. One of them in particular is one of our clients at HB Capital. He made his first $10 million from sourcing deals and then assigning those deals to a real estate investor who had the capital and had the operations to be able to add value and make a lot of money. The second mistake new real estate investors make is that they don't buy the property in the right location, pay a little bit more for the right property in the right location that's in the track of growth versus then getting a little bit better deal on the wrong property that isn't actually going to have the appreciation and the rent increase over time versus the other property. The third mistake new real estate investors make is that they overpay for a deal and they don't run their numbers right. Don't be overly optimistic about the deal. Make sure you account for interest rate, cap what your interest rate is and the ability for that to possibly fluctuate over a certain time period. And make sure to run your numbers very conservatively so you don't get into a deal and then end up losing on the deal. Because once you're into the deal, you can't get out if you overpay for it or if you get it in the wrong location. It's kind of hard to come back from that.