Purchasing rental property has led to many people becoming millionaires; however, it has also led to untold bankruptcies and financial heartache. This article will tell you about 4 fatal mistakes that you need to avoid if you want to make yourself into a property millionaire instead of a someone who loses their life savings while attempting to invest in property.
- Trusting - You most not trust anyone blindly. This is probably the thing that has caused the most financial distress to a great number of people. Thousands of people across the globe have put their life savings in the hands of an individual or company who was supposed to invest it in property wisely for them.
Many of these people have ended up losing all their money and some have even ended up owing more on top. Never blindly give anyone your money to invest for you. You most educate yourself first and understand each property investment before putting any money in; and if you do chose to use investment companies, clubs or individuals to invest for you, you must be sure they are reputable.
- Due Diligence - A lack of due diligence could cost any property investor, new or experienced, dearly. Take time and do your homework on any opportunities that come your way. If you are tight on cash flow, then don't jump at anything that you feel unprepared for; since, this is a sure way to lose money.
- Finance - Many people make the mistake of not having their finances in order when they attempt to buy property. This can be a huge mistake. Firstly, if you find a property to buy and then you go hunting for finance, you are potentially on the back foot and you are more likely to make hasty financial decisions and accept high interest rate mortgages or ones that have unfavourable terms.
Secondly, you will feel more confident if you know you have your finances in order. You will be able to haggle with confidence knowing that you are all ready to go as soon as the right deal comes your way.
- Strategy - having a bad strategy or not having a strategy at all is the way many people approach purchasing rental property for the first time.
This is the wrong way to do it. There are so many opportunities to make money from property that you need to know exactly how you plan to do it; otherwise you could be running around like a headless chicken, chasing this property deal, then chasing a different deal, and never really getting anywhere. You need to avoid the mistake of not having a clear strategy that will guide you and make your path to making money from property, crystal clear.
Don't waste your time and money following pipe dreams of making money from property, without really knowing what you are doing. Claim your free property book by visiting our property investing tips website where you can learn how to be a successful property investor.