Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin

Successful real estate investing
Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin

I only have one asset, and that is time.  Set up automated systems.

The number one determinant of success is what you believe.  You must continually educate yourself to boost your belief.  The second determinant for success is know-how, and the third one is consistent action.

Make lots of offers.

I challenge you to start your own business, even if you do it on the side part-time.  Working for someone else is like going to the gym five times a week, but your boss builds all the muscle.

It is about the numbers, take the emotion out of your deals.

If you are considering long term investing, find out what are the job and growth prospects in your area.  They are related to supply and demand.

Track how you spend your time and what makes money for you.

Mistake 17: Not taking advantage of affordable legal services.  Look for prepaid legal services.

Mistake 18: Not developing a long term plan to protect your real estate assets.

Who are the people who sue other people?  Upset and angry people.  Therefore, here is the best policy you can ever adopt: Don’t make people angry. ( Return phone calls, do repairs, talk politely to tenants ).

Mistake 30: Not having a systematic way to run your rental business.  Set up a system that makes it possible to run your business in autopilot. Ex: set up voicemail messages explaining stuff when potential renters call.

Mistake 41: Not charging tenants for damages to your property:  The only damages owners should be responsible for are normal wear and tear.  When tenants move in, they sign a damage disclaimer in addition to the lease: “You are responsible for the damages you and your guests cause, this is an estimate of costs, it might cost more… “ Then if a sink costs 75 to fix, I charge them 150.

Mistake 45: Penalizing bad tenants and not rewarding good ones:  Ex Reparations done in 3 business days, if not, we can reimburse some rent: “here is your 60 for 2 days in cash, we are sorry and we hope it does not happen again”.  If tenants declare they are going to move we send them a letter adding up the costs of moving ( up to 2.000! ).

Mistake 47: Not inspecting properties regularly:  The lease should say that someone can go in at second tuesday of the month to inspect the property. When you inspect your property every 30 days of less your tenants will know you are serious about caring for it, the managers will know you are checking up on them, and it will help you take care of your investment.

Mistake 52: Not having a per-day penalty for contract work that is not finished when promised.

Mistake 55: Relaying on what people tell you, not what they do.  Don’t set expectations on what people tell you, that will only bring frustration, map your reality on what people do, not what they say.

Top Mistakes:

1. Not making a list each morning of your priorities and what you intend to accomplish that day.
2. Not reviewing the activities list at the end of every day.
3. Not trying to find a deal every day.
4. Not making an offer today.
5. Not having an organized folder system.
6. Not setting up and abiding by strict office hours.  If you don’t follow this policy your personal life, family life and spiritual life will all suffer.
7. Not duplicating what has worked for you in the past.
8. Not spending at least 30 minutes a day on improving your knowledge and skills.
9. Not thanking someone today who has helped you become successful.
10. Not reminding yourself every day of the bigger picture.

Top Negotiating Strategies:

1. Never mention a number until you absolutely have to: ask the seller, how much would you pay? what is the absolute rock-bottom price you would take today? then stop talking, let the silence hang heavy…. “uhmm, can you do any better?… can you do better? ask several times.  Always offer an odd number 321.473 ( I have a system ).

2. Ask questions: Why that price? What are you doing with the money. Also pose questions that elicit a “no” but go in your favor ( people are more likely to respond to questions with “no” ), for ex: is there any reason why you couldn’t consider this offer?. No, why not?

Link to book on Amazon: Successful Real Estate Investing, How to avoid the 75 most costly mistakes – Robert Shemin