Escolar Documentos
Profissional Documentos
Cultura Documentos
1
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
TRAP 1 – I N S U F F I C I E N T E D U C A T I O N
This trap is pretty obvious but it’s so important that it
simply cannot be excluded from this list. Education is
paramount to success in any endeavor but when we are
speaking of investing it is most important to consider its
impact on risk.
We’ve all heard the mantra “high risk, high return & low
risk, low return”. In fact, we have had it drummed into us
to the point that few of us even give it a second thought,
much less question yet. The truth is that professional
investors just don’t see it that way. They reduce their risk
by getting educated.
The risk equals return mantra may hold some truth for the
amateur investor who passively buys retail investment
products. But then the products that fall into the “low
risk” category could also be seen as risky because the
returns are virtually non-existent. If you’re betting your
future on that, many would call THAT risky. So this just
2
www.investing-secrets.com
reiterates the fact that investing is most risky for those who
3
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
TRAP 2 – T A K I N G A D V I C E B L I N D L Y
As we have just touched on, many financial advisors and
educators do not act in their clients’ best interests because
they need to worry about feeding their own families. Since
many do not practice what they preach, they need to earn
an income from the advice they are providing and very
often the advice serves their best interests and not yours.
There are also genuine educators and advisors who DO walk
their talk, who do invest, and do exactly the sorts of things
they advise you to do. So, it is important that you don’t tar
everyone with the same brush and give up on your dreams
just because you have decided that the industry is full of
crooks. As one guru suggests, that would be like choosing
not to experience the joys of swimming in the ocean simply
because you are too afraid to go in, on account of dangers
such as rips and undercurrents. Instead, why not use that
knowledge to take precautions such as swimming on
patrolled beaches and enjoy the experience to the full?
We saw the same phenomenon with the ‘dot com’ boom and
then we also saw it was those very people who were hit the
hardest in the crash. And the world has seen it in many
economic cycles before.
6
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
TRAP 3 – G E T T I N G L O S T I N A N O C E A N
OF INFORMATION
Once you’ve weeded out the con artists and those who are
perhaps unintentionally giving you biased or incomplete
advice you are still left with a multitude of options from the
true gurus. So how do we start to absorb any of the
remaining information without becoming totally
overwhelmed, confused and frustrated?
So, I’ll say it one more time. I believe the best way to
avoid this trap and save yourself a lot of time AND money is
to utilize resources which review the gurus’ strategies;
resources such as Investing Secrets of the Property Masters
Revealed.
8
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
TRAP 4 – S P E N D I N G T O O M U C H M O N E Y
ON EDUCATIONAL PRODUCTS
I know of some people who have become totally caught up
in the euphoria of newfound knowledge and just couldn’t
stop buying tape sets and attending very expensive seminars
and bootcamps. So much so, that they must have spent at
least $50,000 within a 12 month period and still hadn’t
bought their first investment property. They were just
bouncing around from one great idea to the next.
I won’t point out the obvious with the first story beyond
reiterating that it can be a very costly exercise to get an
education. You must do something with the information as
you receive it so that it pays for itself. Remember that a
true investor is looking for a ‘return on investment’ rather
9
www.investing-secrets.com
than speculating and that applies to the cost of education
10
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
TRAP 5 – N O T S E T T I N G S O M E C L E A R
INVESTING GOALS
The power of goal setting has been well documented and
communicated so before you skip over this point because
you’ve heard it all before I’d like you to consider how well
you are doing it. I’m a firm believer that you don’t
understand something until you are doing it.
If you are an avid goal setter you will want to read this to
learn some specifics associated with real estate investing.
If you are not a frequent goal setter please read on and
consider that setting goals really is a powerful tool, does
have some magic about it, and is critical to your investing
success.
I’m tempted to offer some goal setting basics here but for
the sake of brevity all I’ll say is that your goals should be:
specific, measurable, realistic, in writing and have a
deadline. Know also that they will evolve over time so you
don’t need to worry about getting them perfect; just start
with something!
or
If you are really disciplined you can take this one step
further and use the same approach for the activities that
produce the outcomes that we are measuring on the other
graph. This really helps ensure the result. For example, if
you know you need to evaluate 100 properties and make
offers on 10 to acquire that amount of property then you
could graph those drivers as well.
13
www.investing-secrets.com
TRAP 6 - T R Y I N G T O L E A R N
14
www.investing-secrets.com
TRAP 7 – T R Y I N G T O “S U C C E E D ”
If this sounds like you; if you’re the type of person who gets
flat out excited by an idea and then spends the next month,
year or decade telling friends about the really big deal that
you just missed out on (again) then be thankful that you did
miss it. YOU ARE NOT READY FOR IT. I’ve heard many of
the gurus say, “the deal of a lifetime comes along at least
once a week”. And you probably know that because you’ve
just missed that one big deal so many times now. You know
the one – it would have set you up for life.
The problem is that you have not gone through the process
of learning, especially the learning from the experience of
putting together the small, training deals we talked about
in the last section. So stop trying to take the short cut and
just do the work you need to do because it will probably get
you where you want to go a lot faster anyway and then you
get to keep the success as well because it is inside of you. I
hope you understand.
For those of you for whom this did not apply, thanks for
your patience with this personal message.
15
www.investing-secrets.com
There’s one final point with respect to big deals and small
16
www.investing-secrets.com
7 TRAPS OF REAL ESTATE INVESTING
CONCLUSION
I hope this report has helped clarify some things and has
cleared the path for you so you can see where you are
headed. It’s a jungle out there! Seriously though, it can be
a confusing and overwhelming journey at times because
there is so much information being thrown at you. And my
objective is to help you filter out the junk, take the good
information and go and apply it with confidence.
To your success,
Scott Roemermann.
17
www.investing-secrets.com