Todd Proa Reveals Some Common Blunders Made by ?first-time? Real Estate Investors

Posted on August 9, 2010

Todd Proa Reveals Some Common Blunders Made by “First-time” Real Estate Investors

Todd Proa says (so does everyone else for that matter! :) ) that blunders often result in failure and heavy losses. None of the initial starters in any business, be it a real estate business or writing business, can know everything about it and hence are prone to making mistakes. Todd Proa, a researcher of the real estate industry from Upstate New York, says “to avoid committing blunders, dig facts before committing yourself to the cause! One can avoid a mistake only if he/she knows what the mistake is!!!” It is suggested by Todd Proa that if you want to avoid blunders/mistakes then you must search for a good mentor or take guidance from someone who is a good real estate agent so that your mistakes do not get converted into blunders.

Todd Proa cites some of the common blunders that initial real estate investors are prone to commit, often leading them to heavy losses, are:


Becoming over-confident and covering every market: Todd Proa is of the view that, typically, new real estate investors’ sign up for all sorts of lists and receive emails about real estate deals all over the country. Todd Proa, as researcher of the real estate industry, suggests that ideally a real estate investor, who is new, must keep his focus on his own local market first. After attaining good understanding about one’s local market, one should think about venturing into buying properties in other market areas. Todd Proa suggests that a new real estate investor, having a strong and reliable partner or guide who can help him fully, should make a couple of deals in his own area and only then think of venturing in other market areas.


Wrong estimate of the amount of work it takes: Often, it has been seen that seminars and boot camps misguide new real estate investors that they can make easy and fast money by becoming a real estate investor. The truth according to Todd Proa, a real estate industry researcher from Upstate New York, about real estate investments is that like other businesses real estate investment also takes loads of time and effort to climb up the stairs of success. It is important to understand that no deal is going to fall in your lap overnight just by attending seminars and meetings! Be patient. Todd Proa says that real estate investment requires persistent marketing, building good relationships with those who are already in field like realtors, attorneys, appraisers, mortgage brokers etc. and be aggressive at going after the deals.


Lack of planning – Todd Proa believes that lack of planning and not planning in advance is the biggest mistake that often turns up into a blunder. A real estate investor must find a house after making a proper investment strategy rather than looking a house to fit the plan. Majority of new real estate investors purchase a property just because they are getting a good deal and after that they try to fit it into their plan. Todd Proa suggests that the investors should ideally concentrate on the number and try to make offers on multiple properties. This will help them to ensure a good property that will not only match their investment model but will also work out well with the numbers they had planned for.

Todd Proa is a researcher of the online real estate industry.

www.toddproa.com

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