4 Pitfalls of New Investors (And how to overcome them)
Regardless of how many units you have, one or one thousand, there is one quality all multifamily investors have in common. There was a point when we had no deals and knew nothing. If we all start at this same point, what separates the unsuccessful investors from those who go on to make millions? Well, there are a few common mistakes made by investors that you should avoid. If you apply these principles you will find out success does not happen by chance but instead through intentional and consistent actions.
Trying to do it all
Multi-tasking is a skill many people pride themselves on and others feel they develop out of necessity. You may be an active investor or choose real estate investing because you want to stay in control. This may be a challenging mindset to shift. Out of ambition, you are the marketer, the fundraiser, the book keeper, the maintenance person, the lawyer, the web designer, the general contractor and the list can go on. This is a recipe for sleepless nights and burnout.
In Gary Keller’s book, The One Thing, he discourages multi-tasking and advises that when you say Yes to something you also say No to something. By focusing on and developing one skill you will reach proficiency faster and be more efficient.
The reason multifamily syndications are able to succeed is the sharing of resources and responsibilities. Syndications are the epitome of team work. They bring together like-minded investors to share resources (knowledge, capital) to make a mutually profitable investment. When you say yes to multifamily syndication you will have to say no to trying to do it all by yourself.
”Multifamily investing brings people together"
Solution: Multi-family brings people together. Hire employees or find joint venture partners by joining REIAs, networking groups, investment clubs , online forums, real estate investing conferences and by letting your friends and family know what you are working on/ your goals. Have an abundant mindset and realize that taking a smaller part of a deal upfront and relinquishing some control will lead to a larger number of deals in the long run