One thing investing gives you is humility. If anyone confidently boasts they have the once-in-a-lifetime secret to making millions in real estate in 30-days or less with no money down, you can bet they aren’t a real estate investor. True real estate investors can tell you story after story of how they made mistakes, messed up, made a bad decision, and received a master’s degree from the school of hard knocks.
The benefit of experience is that you learn from it. The benefit of hiring someone with experience is that you can learn from them. At Circa Real Estate Group, our goal is to walk you through the process of real estate investing, so you don’t have to make some of these most common mistakes.
Reality TV is a lie
House flipping is trendy. Lots of people see house flippers on reality TV and want to get into the fun adventure of getting uber wealthy in their spare time flipping houses. Like everything else in life, actual real estate investing is nothing like TV.
One of the most common mistakes we see new investors make here in Colorado Springs is expecting real estate investing to be like their favorite reality television show. The problem is that “reality” shows are fake. The goal of a television show is to get you to watch. To do that, they provide entertainment and drama. Cold, hard truth simply doesn’t sell.
In real life contractors don’t show up, sellers don’t accept your offer, rehab projects are more expensive than estimated, and the house doesn’t sell right away. Investors spend hours researching, networking, getting help from experts, and living on the phone.
Real estate investing can be a great way to build long-term wealth, but if you go into it expecting a fun and easy hobby just like on TV, you are going to be sorely disappointed.
Don’t spend thousands on seminars
The charlatans who sell investing seminars on late-night TV are liars. If someone invites you to a “free” seminar in order to sell you the “secret to real estate investing” if only you’ll spend a few thousand dollars on a more expensive seminar, it’s a con and you should avoid it.
I have spoken to multiple people locally in Colorado Springs who put thousands of dollars on credit cards and home equity lines in order to attend investing seminars, only to bury themselves in debt and never actually do any real estate investing. You would think that could only happen a few times before the fraudsters had to close up shop, but there was an ad recently that a “free seminar” was taking place right here in Colorado where you could learn the “secret” of making millions investing in real estate.
Believe me when I say I believe in education. I’m an avid reader and I’m currently working on my second master’s degree. Business school, networking seminars, and books on investing are all wonderful tools to achieve a quality education. You should absolutely read, study, and learn about real estate.
The last investing seminar I attended in Denver, called the Investor Success Summit, cost $19. While there were some quality vendors local to Colorado, nobody there tried to sell me anything. It was a great seminar taught by experienced investors who worked hard to prepare relevant content. I learned some helpful tips and met some great people. It didn’t cost thousands of dollars and I didn’t need to sign up for another seminar to get the “true investing secrets real estate agents don’t want you to know.”
Hucksters selling seminars and expensive web courses do not make money on real estate investing. If they did, they wouldn’t spend all their time selling seminars. Save your money and buy an investment property here in Colorado Springs. You’ll get a house out of the deal and the education is free.
You can spend a lot of money to make any home look like you spent a lot of money. The problem is that doing so may not actually make the house more valuable.
You may be an excellent interior designer. When you decide to fix up a home, you let the creative juices flow; The home is your canvas and your credit card is the paint brush.
Hey, if you can afford it, you should buy nice things, for your home.
For an investment, every dollar you spend not only comes directly out of your profit, it increases the risk you will lose money.
Most of us don’t get into investing to lose money.
Different neighborhoods in Colorado Springs have different standards and expectations regarding finish levels and interior design choices. If you over-improve one room above the standard level of the home, you can make the entire home look less attractive and hurt overall value. Money spent on improvements doesn’t translate to greater value.
As a Real Estate Investor Specialist, my job is to help you make these decisions and avoid costly mistakes.
Let us help you avoid these traps
The best way to gain the confident humility of a true real estate investor is through the education that comes with experience. Seminar slinging hucksters and reality TV producers are successful because they sell a grain of truth – you can make money investing in real estate. The rest of the truth is that you don’t need them to do it.
If you have the patience and willingness to invest wisely, and the discipline to be consistent, we can help get you on the right track to profitable real estate investing right here in Colorado Springs. While that won’t sell any seminars, it can provide true real estate investing success.
To find out more about real estate investing in the Colorado Springs region, please schedule a meeting with an Investor Specialist.
Circa Group, LLC, dba Circa Real Estate Group, and its representatives do not render legal, tax, or investment recommendations. Persons should consult with their own professional advisors as to risks and legal, tax, and financial implications and consequences in matters concerning investments. All investments, including real estate, are speculative in nature and involve risk of loss. We encourage our investors to invest carefully.
We encourage investors to make independent investigations before acting on information we publish. Much of our information is derived directly from information published by companies or submitted to governmental agencies which we believe are reliable, but are without our independent verification. Therefore, we cannot assure you that the information is accurate or complete. We do not in any way warrant or guarantee the success of any action you take in reliance on our statements or recommendations.
Past performance is not indicative of future results. All investments carry risk and all investment decisions of an individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of investing they choose to do. We make no representations or warranties that any investor will, or is likely to, achieve profits. Don’t enter into any investment without fully understanding the worst-case scenarios of that investment.