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10 Costly Mistakes to Avoid as a New Real Estate Investor<br />
Market Analysis: The first component to developing real estate goals is a<br />
comprehension of your market, which implies doing your homework<br />
beforehand. It’s important that you conduct a market analysis, as to first<br />
identify a need in the market, as well as trends and changes that are<br />
occurring. As an investor, you will need to seek out everything you can about<br />
a real estate market, including the median home price, appreciation rates,<br />
gains in total home equity, home affordability, the health of the local<br />
economy, as well as new housing construction. This will provide a snapshot<br />
of where the market stands, and how you can add value as an investor.<br />
Additionally, this information will better assist in not only forming your<br />
goals, but detailing where you should invest and how.<br />
Your Niche: The next aspect to consider when setting real estate goals is<br />
determining your niche. Because there are endless investment avenues with<br />
real estate, it’s critical that investors identify a starting point. Identifying your<br />
real estate niche will not only help to refine your approach moving forward,<br />
but assist in distinguishing yourself from the competition. In addition, a real<br />
estate niche will be aligned with strategy to achieve a vision or goal —<br />
whether to prepare for retirement investments or establish a steady flow of<br />
passive income. Tips for discovering your real estate niche include: Defining<br />
your purpose, identifying what you’re good at and what you enjoy most,<br />
understanding how you can add value, and uncovering if there’s an actual<br />
need for you.<br />
How Realistic Are Your Goals? There are unnecessary costs of overshooting<br />
real estate goals, including your time, money and reputation.<br />
Following the S.M.A.R.T. framework, it’s imperative for investors to examine<br />
their goals and determine whether or not they're realistically attainable. In<br />
most cases, setting unreasonable aspirations can have profound impacts on a<br />
real estate investor and their business. It can ultimately create a culture of<br />
failure; one where failure is not only excusable and accepted, but rather<br />
expected. 36<br />
10 Costly Mistakes to Avoid as a New Real Estate Investor
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