Top 5 real estate investing mistakes from investors (+ Hacks to avoid them)

You know those super successful real estate investors you see living the dream? Well, guess what? Even they've got some pretty big regrets. I'm talking about the kind of mistakes that can set you back years in your journey to financial freedom.

I recently had the chance to chat with about 50 high-level investors at a mastermind event, and boy, did they spill the beans! They shared what they wish they'd done differently to escape the rat race faster. Some of their answers were pretty surprising, especially number four. So, grab a drink and let's dive into the top five real estate investing mistakes these pros made - and how you can avoid them!

Mistake1. Not Starting Sooner (The Early Bird Gets the Wealth)

You've probably heard the saying, "The best time to plant a tree was 20 years ago. The second best time is now." Well, the same goes for real estate investing. Almost every single investor I talked to said, "I wish I had started sooner." And there's a good reason for that.

Real estate isn't just about creating passive income (though that's awesome too). It's also about compounding growth. The longer you're in the game, the bigger your gains. Let's break it down:

• On average, real estate appreciates 3% to 5% a year.

• When you buy property with a 20% down payment and borrow the rest, your return on appreciation is multiplied by a factor of five.

• That translates to growth of 15% to 25% per year - and that's just from appreciation!

One investor told me that if he'd started just 5 years earlier, his portfolio would be worth double what it is now. Double! Can you imagine?

As Will Rogers said, "Don't wait to buy real estate. Buy real estate and wait." So, if you're wondering, "Is real estate investing hard?" - the hardest part might just be taking that first step.

Mistake 2. Quitting the Day Job Too Soon

Now, this one caught me off guard a bit. Several investors said they wish they'd held onto their day jobs a little longer. I know, I know - the dream is to go full-time into real estate ASAP and never look back, right? But here's the thing: quitting too soon can cost you some major perks.

When you leave your 9-to-5, you're saying goodbye to:

• Health insurance

• A consistent paycheck

• The banks' love for W2 income

That last one is a biggie. When you go self-employed, banks suddenly see you as high-risk. They'll cut you off until you prove yourself. And here's the kicker - as a business owner, you're probably using all those sweet tax advantages to show that you're making very little on paper. It's all legal, but it makes getting loans a lot harder.

Here's a real-world example: When I first moved to Las Vegas, I got denied for a mortgage when I tried to buy a home. But my assistant, whose salary I pay, got approved! The bank saw her W2 salary as safe, but deemed the guy who pays her salary (that's me) as unsafe. Crazy, right?

So, before you quit your day job, learn from their mistakes to avoid when investing in real estate:

• Max out your bank loans while you still have that W2 income

• Build a bigger financial cushion than you think you need

• Try to get your rental income to match your salary before you quit

Remember, at first, you're not just your own boss - you're your own employee too.

Mistake 3. Doing It Alone

You know the saying, "If you want to go fast, go alone. If you want to go far, go together"? Well, in real estate investing, going it alone might mean you don't go very far at all.

Every investor in that room said they wish they'd found a mentor sooner. Some even said a small support group of like-minded individuals would have made a world of difference.

One guy put it like this: "Trying to figure everything out on your own is like trying to build a house without a blueprint. You might get a wall up, but trust me, that thing's coming down in the first storm."

Another investor dropped this bombshell: "I spent years doing $100,000 deals when I could have easily been doing million-dollar deals with the same effort if I had the right mentor." Ouch!

I've got that regret too. I was so scared of those extra zeros in the big deals at the beginning. But here's the thing: a good mentor isn't just about avoiding mistakes. They're about helping you grow faster and smarter.

If you're making these same rookie real estate investment mistakes right now, it could be the reason you're stuck in the grind longer than you need to be. These are the mistakes that could be preventing you from scaling, keeping you working harder instead of smarter, and costing you big - both financially and emotionally.

That's why I'm putting together a small group of aspiring investors for a new Apprentice program. It's designed to help you start smart, with startup capital, a customized plan, lead generation, and access to cash buyers. You should join us to avoid the "doing it alone" mistake.

Mistake 4. Chasing Too Many Strategies

This one hit home for a lot of investors. They called it the "shiny object syndrome" - getting distracted by everything that seemed like the next big thing. Flipping, wholesaling, multifamily, storage facilities... you name it, they tried it.

But here's the truth bomb: those who became really successful did so by focusing on one thing and mastering it. Even if it took them a while to figure out what that one thing was, their real success didn't happen until they did.

One investor said, "If I had just picked one strategy from the start, I'd have grown twice as fast and saved myself years of headaches." He compared it to trying to juggle 10 tennis balls at once - you're eventually going to drop them all.

So, what's the hack? Pick one strategy and get great at it. Get so good that you find it boring. As Warren Buffett says, "The best investing is boring investing." If you get bored of your strategy, that means you're doing it right!

When you're just starting out in real estate investing, it's easy to get overwhelmed by all the options. But remember, success comes from mastery, not variety.

Mistake 5. Selling Too Soon and Not Buying More

This was probably the most common regret I heard. Many investors wished they hadn't sold properties so soon and that they'd bought more when they had the chance.

Here's the deal: flipping properties gives you quick cash, sure. But that monthly rental income? That's what sets you free. And the appreciation from properties you hold onto? That's what makes you wealthy in the long run.

One investor put it this way: "Cash flow is the oxygen of this business. Appreciation is the muscle." Just like muscles grow over time and strengthen your body, appreciation builds your wealth gradually, adding value to your assets as they increase in worth.

He asked me this question: "Would you rather have flipped 20 properties 20 years ago, or bought and held 20 properties 20 years ago?" The answer is pretty obvious, right?

But I know what you're thinking: "What if I don't have the money to buy 20 properties today?" That's where our honorable mention comes in...

Bonus: Overlooking Creative Financing Strategies

A few investors said they wished they'd gotten into creative strategies like seller financing, subject-to, or lease options earlier. These methods let you control properties without needing a ton of cash up front. 

So, if you're worried about funding your deals, you might want to check out No Cost Capital. It's a tool that can eliminate your financial barriers in one application, without paying interest or fees. It's perfect for flipping properties, covering operational costs, or expanding your marketing efforts.

And while we're on the subject of marketing, don't forget about the power of direct mail in real estate. Mailmix.io offers done-for-you direct mail campaigns that can help you nurture prospects and increase conversions without eating up all your time.

Investing in Real Estate Without the Headaches

If at this point, you’re wondering, "What is the biggest issue with investing in real estate?", here’s the truth: It varies for everyone. But these mistakes? They're pretty universal.

Investing in real estate, like any investment, comes with its risks. But when done right, real estate as an investment option can be incredibly rewarding. Focus on learning from others' mistakes to make informed decisions.

Remember, your journey to financial freedom through real estate doesn't have to be a solo mission. I can help you shave at least 10 years off your retirement timeline.

From our very first call, you'll gain the clarity, confidence, and support to lock in your first cash-flowing property in 90 days or less. Let's make your real estate dreams a reality - without the issues with investing in real estate that trip up so many others.