One of the biggest REI Mistakes you can make is to buy real estate on a budget. That means you’re going to play small, which, in my experience, won’t work. This isn’t like buying groceries.
“I have just X amount of dollars to spend, so this small thing is what I’m going to buy.” If you think this way, you’re already starting off on the wrong foot.
Why is buying real estate on a budget a bad idea?
Look at both sides of that number you have. How do you know it’s not making you miss out on a good deal? Maybe the greatest deal you can buy is over the current budget you’ve set for yourself.
Therefore, you need to learn how to raise capital so you aren’t confined to a certain number.
That way, you won’t end up losing what could be the deal of a lifetime.
The three biggest mistakes I see real estate investors making are:
- Not buying in the beginning because they don’t know what they’re doing.
- Buying too small because they think bigger deals are riskier.
- Learning what you can afford; it may be more than you think.
So, what can rookie investors do to level up their game?
- Learn how to read the expenses involved in a deal;
- Raise money if required for bigger deals;
- Most importantly — never restrict deal-buying with a budget.
I don’t look for deals anymore based on how much money I have; I look for great deals and buy them.
When a real estate investor does that, the money will come. On the other hand, buying real estate deals on a budget will only limit options.
What will you choose?
If you’re new to the real estate game, I want to invite you to register for my LIVE Free Real Estate Training I’m hosting on June 25. I’ll cover how I find, buy, and underwrite deals, as well as raising money and using debt in real estate.
See you there,
This content is intended to be used for educational and informational purposes only. You should always do your own analysis based on your own financial and personal circumstances before making any investment. Grant Cardone is an industry expert who has been investing for over 30 years and his opinion is based solely on his own personal experience and circumstances. Grant Cardone’s opinions are not recommendations or endorsements from any of the Cardone Companies. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment. Investment involves great risk and there is no guarantee of performance or results.
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