Why A Majority Of Real Estate Investors Fail?
By: Curt Cloyd â€“ Director Personal Wealth Academy, LLC
Why A Majority Of Real Estate Investors Fail By: Curt Cloyd â€“ Director Personal Wealth Academy, LLC
Have you ever wondered why a majority of real estate investors fail when it comes to investing? It's true that most real estate investors never really end up achieving the financial freedom that they so desperately wanted to achieve. There are only 3-5% of real estate investors that really achieve significant financial freedom. The remaining 90% end up achieving little or no success at all. After working with many struggling real estate investors, I've discovered that there are actually TWO main reasons that cause these investors to fail badly. The two main reasons why a lot of real estate investors fail are... 1. Not establishing a cash flow business When it comes to real estate investing, CASH FLOW is KING. Without cash flow, you won't be able to close the deals as quickly as you wanted. The problem with most real estate investors is that they rely on their day job income for cash flow which isn't enough. Therefore, they are never able to close the deals as quickly as possible. At the start of your real estate investing career, you need to direct all of your efforts towards building a successful cash flow business either in wholesale or fix and flips. If you're a real estate investor who still doesn't have a profitable cash flow business, we strongly recommend that you read the following page - Building A Cash Flow Business
2. Not building a team No one achieves significant success doing anything solo especially in real estate. Most successful real estate investors build a team of trusted professionals that can help their business at any point. The reason not having a team contributes to failure is because a typical real estate investor (with a day job) finds everything overwhelming to do it alone. But with a team, it's a lot easier. You don't need to actually have these people in your employ. But it always pays to have a team of trusted contractors, plumbers and electricians whom you can rely on to get work done as quickly as possible. If you haven't started building your team yet, it's high time that you start now.
Apart from these two reasons, there are also many mistakes that beginner real estate investors commit. I actually read an interesting article recently at SpeedyTenants.com that lists out three common mistakes real estate investors make. You can learn more about that here.