Cover image for Successful real estate investing : how to avoid the 75 most costly mistakes every investor makes
Title:
Successful real estate investing : how to avoid the 75 most costly mistakes every investor makes
Author:
Shemin, Robert, 1963-
Personal Author:
Publication Information:
New York : John Wiley, [2004]

©2004
Physical Description:
xiv, 250 pages ; 23 cm
General Note:
Includes index.
Language:
English
ISBN:
9780471453970
Format :
Book

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Summary

Summary

Successful Real Estate Investing is written specifically for novice investors who want to get started with confidence. It highlights 75 of the most common mistakes investors make and offers specific, real-life strategies for avoiding them. Each mini-chapter covers one mistake and offers pearls of wisdom based both on Robert Shemin's long experience as an investor and on case studies of investors he has met or assisted along the way. For investors worried about making a particular mistake in any step of the investment process, this is the only real estate guide that offers quick, expert guidance on avoiding everything that could-but won't!-go wrong.

Successful Real Estate Investing covers these mistakes as well as many more:
* Forgetting to screen all tenants
* Not taking in adequate cash flow
* Missing out on special loan programs
* Not having the proper insurance
* Holding onto a rehab or rental house that won't sell or rent
* Thinking short-term when you should be thinking long-term
* Punishing bad tenants without rewarding good ones
* Failing to establish minimum requirements for tenants
* Failing to inspect properties regularly


But Successful Real Estate Investing is more than just a list of troubles to avoid, it also teaches the most important keys to real estate success: keep it simple, believe you can do it (because you can!), inform yourself so you know what you're doing, and stick with it! With common sense and the uncommon guidance you'll find here, there's nothing standing in your way!


Author Notes

A nationally recognized landlord expert and the bestselling author of "Secrets of a Millionaire Real Estate Investor", Robert Shemin, JD, MBA, has appeared on "The Montel Williams Show", "Leeza", National Public Radio, and more than 50 other nationally syndicated and major-city radio programs, and has spoken to more than 10,000 landlords in the past two years.

(Publisher Provided)


Table of Contents

Acknowledgmentsp. xiii
Introductionp. 1
Part I 75 Real Mistakes to Avoid in Real Estatep. 15
Mistake # 1 Not Getting Started in Real Estate Investing Early Enoughp. 18
Mistake # 2 Not Paying Attention to the Cycles of Real Estate: Prices, Price Increases, and Price Decreasesp. 20
Mistake # 3 Not Becoming Active in Your Local Real Estate Investors Associationp. 21
Mistake # 4 Thinking about Short-Term Results Instead of Long-Term Results When Starting Your Real Estate Investment Businessp. 22
Mistake # 5 Not Having a Written Plan for Your Investment Businessp. 24
Mistake # 6 Expecting to Have Equal Partnerships in Your Real Estate Investment Dealsp. 25
Mistake # 7 Being Frightened to Do Large Dealsp. 26
Mistake # 8 Being Unclear Whether You Want to Sell or Rent a Propertyp. 28
Mistake # 9 Letting Your Business Get Out of Your Control and Run Youp. 29
Mistake # 10 Not Budgeting for Your Real Estate Educationp. 31
Mistake # 11 Failing to Review Your Finances, Progress, and Overall Activity at Least Once a Weekp. 32
Mistake # 12 Thinking That Real Estate Is Riskyp. 34
Mistake # 13 Not Creating an Exit Strategy for Your Real Estate Businessp. 36
Mistake # 14 Wasting Time on Activities That Don't Make You Any Money and Simply Aren't Any Funp. 38
Mistake # 15 Not Having the Right Insurance to Properly Cover Your Investmentsp. 39
Mistake # 16 Being Underinsured on Your Auto Insurance Coveragep. 41
Mistake # 17 Not Taking Advantage of Affordable Legal Servicesp. 43
Mistake # 18 Not Developing a Long-Term Plan to Protect Your Real Estate Assetsp. 47
Mistake # 19 Setting Up an Asset Protection Plan Improperlyp. 49
Mistake # 20 Missing Out on Special Loan Programsp. 51
Mistake # 21 Running Out of Cash and the Bills Keep Comingp. 52
Mistake # 22 Not Having the Proper Team in Placep. 54
Mistake # 23 Not Establishing Good Relationships with Those in the Investment Business and Service Providersp. 57
Mistake # 24 Getting Stuck with a Rehab House That Won't Sell or a Rental House That Won't Rentp. 58
Mistake # 25 Failing to Include a Contingency Clause When Putting Together a Contractp. 59
Mistake # 26 Not Negotiating with the Decision Maker Who Can Really Help Youp. 61
Mistake # 27 Lamenting That Your Property Isn't Selling Fast Enoughp. 63
Mistake # 28 Making the Contract Process More Complicated Than It Has to Bep. 64
Mistake # 29 Negotiating a Good Cash Offer on an Attractive Piece of Property, but Leaving Money on the Tablep. 66
Mistake # 30 Not Verifying Everything with a Third Partyp. 69
Mistake # 31 Making Only One Offer on a Property Instead of Threep. 70
Mistake # 32 Spending Too Much Money on a House That You Bought to Fix Up and Sellp. 71
Mistake # 33 Analyzing Properties Too Much and Too Longp. 73
Mistake # 34 Overlooking Bad Houses and Bad Neighborhoodsp. 76
Mistake # 35 Not Making Sure Buyers Are Preapproved for a Mortgagep. 78
Mistake # 36 Using Only Short-Term Financingp. 80
Mistake # 37 Not Having Multiple Sources of Financing so You Can Transact More Dealsp. 82
Mistake # 38 Spending Too Much Time Talking to Tenants, Worrying about Repairs, Doing Paperwork, and Making Very Little Moneyp. 85
Mistake # 39 Not Having a Systematic Way to Run Your Rental Businessp. 87
Mistake # 40 Not Setting Up Minimum Standards in Writing When Selecting Tenantsp. 90
Mistake # 41 Not Charging Tenants for Damages to Your Propertyp. 91
Mistake # 42 Not Screening Tenants Well Enoughp. 92
Mistake # 43 Not Doing a Credit and Criminal Background Check on Everyone Who Receives a Key to Your Propertyp. 93
Mistake # 44 Not Having a High Enough Cash Flow from Your Rental Propertiesp. 94
Mistake # 45 Penalizing Bad Tenants but Not Rewarding Good Onesp. 96
Mistake # 46 Not Learning about Government Programs for Low-Income Tenantsp. 98
Mistake # 47 Not Inspecting Properties Regularlyp. 99
Mistake # 48 Attempting to Perform Your Own Evictions and Collections, and Getting Suedp. 101
Mistake # 49 Not Using Licensed, Bonded, and Referred Contractors and Repair Peoplep. 103
Mistake # 50 Paying Too Much for Repairs and Not Getting Written Bidsp. 104
Mistake # 51 Paying for a Repair or Construction Job before It's 100 Percent Completedp. 106
Mistake # 52 Not Having a per-Day Penalty for Contract Work That's Not Finished When Promisedp. 107
Mistake # 53 Assuming That the Way You Think and Do Business Is the Way Other People Think and Do Businessp. 108
Mistake # 54 Selling Your Property Instead of Holding Itp. 109
Mistake # 55 Relying on What People Tell You, Not on What They Dop. 111
Mistake # 56 Letting Fear and Hesitation Keep You from Getting the Dealp. 113
Mistake # 57 Not Choosing and Working with Partners Wiselyp. 115
Mistake # 58 Not Understanding How to Deal with Real Estate Agents as an Investorp. 117
Mistake # 59 Not Understanding the Difference between Being a Real Estate Investor and a Real Estate Speculatorp. 119
Mistake # 60 Not Having Enough Rent Coming in to Cover All of Your Real Expensesp. 120
Mistake # 61 Not Setting Up Separate Bank Accounts and Accounting for Each of Your Real Estate Activitiesp. 122
Mistake # 62 Not Knowing Why You Are Really in Real Estate or What You Will Do with the Money You Makep. 124
Mistake # 63 Working Only on Making Big Deals When the Little Ones Pay the Billsp. 126
Mistake # 64 Thinking and Worrying Too Much, Then Losing the Dealp. 128
Mistake # 65 Not Understanding That Real Estate Investing Is a People Businessp. 130
Mistake # 66 Not Making a Real Commitment to Being a Successful Real Estate Investorp. 132
Mistake # 67 Not Having a Mentor or Coachp. 133
Mistake # 68 Missing Out on Lots of Deals and Thousands of Dollars Because You Stopped Following a Dealp. 134
Mistake # 69 Not Making Additional Income from Deals That You're Doing Anywayp. 137
Mistake # 70 Not Focusing on the Activities That Will Make Money for You Todayp. 140
Mistake # 71 Letting Your Emotions Rule Your Choice of Rehab Projects Instead of Analyzing the Numbersp. 144
Mistake # 72 Overrehabbing a Propertyp. 145
Mistake # 73 Not Finding out the Underlying Reasons Why People Are Selling Their Propertiesp. 146
Mistake # 74 Getting Too Greedy When Flipping to Other Investorsp. 148
Mistake # 75 Not Being Generous with Your Partners and Coinvestorsp. 149
Part II Three Bonus Mistakesp. 151
Mistake # 76 Not Knowing to Ask for Owner's Termsp. 153
Mistake # 77 Failing to Aggressively Market Properties You Have for Salep. 154
Mistake # 78 Not Giving People More Than They Expectp. 155
Appendix A Almost Every Possible Way to Find Great Dealsp. 157
Appendix B The Top-10 Real Estate Mistakes We Make Every Dayp. 189
Appendix C Robert's Six Basic Rules of Negotiationp. 201
Appendix D Lease Optioning as a Money-Making Strategyp. 213
Appendix E When Your Investment Business Needs Help: How to Build the Perfect Teamp. 223
Indexp. 243