Before you even think about becoming the next real estate tycoon, you’ve got to be disciplined to learn the basics. What you’re about to read may come as a surprise to you, but there is a single mistake among real estate investors, especially new investors that literally can cost you thousands of dollars and could even potentially put you out of business for good. Now, I am certainly not trying to scare you, I simply want to make you aware of the number one potential pitfall to investing in real estate because it is totally avoidable. And contrary to popular opinion, this isn’t something you can pick up from watching late night television or at a weekend seminar. The one common mistake that I’ve seen that puts investors out of business revolves totally around doing their due diligence or lack of due diligence.

As your just starting out and sometimes even after you’ve completed several deals, your adrenaline is pumping every time you look at a deal. You’re hungry, maybe even a little desperate to get a deal done. Your hearts pumping from the excitement to make that offer, and all you can think about is buying this property. And as a result of your eagerness, you tend to slip up and make mistakes. The one critical mistake that will cost you your business comes from simply over valuing a property. You analyze the deal’s numbers, slightly exaggerating the property’s “as is” value and it’s true potential. In other words, you appraise the property value for more than what you’ll ever be able to sell it for.

Now, there’s some good news to all this: I can show you exactly how to keep from making this one critical mistake. This is not information that is optional; it’s vital to your business that you get this right.
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