Real estate investing is not for everyone
All too often we hear of tales about how real estate investing has made someone a windfall simply by investing right. These stories bombard our consciousness and they make their way to the blogosphere so rapidly you wonder whether some of them are actually planted. Be that as it may, some people love to show that they are successful and they are are savvy, successful investors. But tales of failures in real estate investing don’t make their way to the forefront all that often. And these stories are just as widely prevalent and easily found. The fact of the matter is that people don’t often like to talk about failures, especially if they are no longer indulging in real estate investing.
I think I’ve managed to stumble upon only one blog that detailed the failures and peril that ca be wrought by real estate investing, and when I tried searching for it recently I couldn’t find it because there was barely a trace of it or in fact almost any other story of failure in real estate investing. It’s like that blog has vanished into the night. It’s gone, just like that and I can’t find it again no matter how I try. That’s unfortunate not because it takes away a bit of value from this post, but because it means that life lessons will not be imparted to those that might really need it. Truth be told, there is not a lot of difference between those that have succeeded and those that have failed. But the fact of the matter is that the little decisions have made all of the difference. And god really is in the details. Unless you’re an atheist.
It all starts with wanting to accumulate a great deal of wealth through real estate investing. But for some, it all goes all downhill from there. All of this thanks to one mistake, and believe me that is all it takes. Let’s take something very simple. I believe that buying a new construction property in the right area will see you regain your investment if you play your cards right since there is huge potential for equity appreciation. But many people tend to just jump head first into this sort of purchase without doing any sort of research of their own. That is a potential recipe for disaster and sure enough it is a Molotov cocktail that blows up in the face of some investors.
Unable to obtain mortgages on the property, they slide deeper and deeper into the mire. I have seen people lose huge sums of money simply because they are unable to close on the property and obtain a mortgage. That is just one of the many mistakes that people make when they are investing their money. There are many more where that came from, but at the end of the day the message is the same. Real estate investing just isn’t for everyone.