If real estate is as good an investment as we make it out to be, why do so many investors fail? And more importantly, how do we avoid that fate?
Sourced through Scoop.it from: www.biggerpockets.com
Confirmation bias destroys businesses. To explain, media shows successful investors and businessmen, namely Warren Buffet, Donald Trump, Mark Cuban and such, causing you to think: if you invest or become a businessman, you will succeed. Trash this bias immediately, because with and due to it, you will fail. Then, you must, if you still wish to become that investor, understand the reasons investors fail.
No Commitment: Property investors may feel, generally, that their business of investing in properties is not a business, more a hobby, maybe because they aren’t in a corporate office. The effects of this are whimsical efforts at advertising the property, incapable employees managing the property, the intrigued not buying the property, and the investors entering bankruptcy due to the property.
Education Absent: Investors may often think: ‘I’ve seen others invest and profit. I can, too.’ But the successful have an education in investing in stocks or properties, or they educated themselves. This education is their support: no matter if they fail or not, that support will ensure they don’t fall all the way down. Each investor must have education, or will fail.
Misanalysis: After getting the education, the stringent application of it is vital to the business. An investor cannot misinterpret one statistic, because the business will fail. An investor cannot analyze too little. An investor must always tend carefully to the analyzing of risk.
With these warnings, now invest in your science and succeed.