7 BIGGEST MISTAKES TO AVOID WHILE INVESTING IN 2020

Recently, I had a meeting with a prospective client, who told me his ordeal how he lost 12 plots of land at Lakowe, Ibeju lekki Lagos. He told me that the property is supposed to have appreciated up to 700% but rather that he is still counting his losses for over 4 years now and have decided never to invest in Lagos or anywhere far from home ever again.

Another narrated his experience of how he lost 3 plots of land in Abuja and the third person narrated how he is yet to get access to the five plots of land he bought at Ikorodu simply because he lost the documents that was issued to him during the purchase and the company have denied him acess to his property.
All these are common pitfalls associated with investing but My detailed discussion with each of them revealed that they all made similar mistakes which could have been avoided if my meeting with them was prior to those transactions.

The right information, if applied properly can secure all your deals and make your real estate adventure a profitable venture.

Let’s go there:
1. Lack of due diligence - Due diligence includes running a detailed background check on the property you wish to purchase. Most investors overlook this because their siblings, relatives and best friends are involved in the transaction and this have cost many their hard earned resources. Lack of due diligence is the reason people end up buying properties from fraudulent companies, falling victim to a single property been sold and resold to multiple individuals, buying properties with fake titles and documents etc. Always resolve to do your due diligence before signing that cheque and if you don’t know how to go about it, consult an expert
2. Hiring/Consulting The Wrong People - Hiring wrong people is very close to lack of due diligence. The fatal error here is the fact that the investor actually thinks that he is following due diligence but forgetting the fact that when the blind leads the blind, that both falls into a ditch (Mathew 15 vs 13b). Never underestimate the value or the guidance of a real estate expert while investing or buying a real estate portfolio. But if you think knowledge is unimportant, then you can try ignorance and be ready to live by the consequences.
3. Rushing The Deal - it’s better to miss a deal than to loose your hard earned money. One very popular error when it comes to real estate is jumping the gun. Take a deep breath, study the documents properly, do your background check before signing that agreement or issuing out that Cheque. Above all, pay attention to details. It’s best to have an expert look at the contract before signing them.
4. Underestimating Costs – The main purpose of investing in real estate is to make profits, but there are instances where people put in their money without calculating the costs. Underestimating the costs related to developing, converting or constructing real estate can land you in trouble. Taxes, government fees and registration charges associated with a property should also be kept in mind before you buy that property.
5. Blindly Trusting Others – One of the dumbest mistakes I have seen people make which results in massive lost of money or paying almost double for a deal is blindly trusting people just because they share family ties. Blindly trusting a third party while investing can be extremely stupid, because people are bound to do things in their best interest. Blind faith can lead to you spending more than what is necessary or purchasing real estate which doesn’t suit your requirements. One should consult experts in order to get a clear picture and rely on the word of those who have a proven record of delivering good deals.
6. Mistiming The Deal – Timing is key to everything in life and a real estate deal is no different. I actually came across some prospects recently who told me of how they have invested in certain areas even the popular Ibeju Lekki for over two years and have no tangible returns on investment. An expert will tell you exactly which property will have the next boom and thus ensuring maximum returns on investment.
7. Falling in love with a company - Don’t get it twisted, love is a beautiful thing but attachment is bad for business. The goal of real estate investing is to make profit and sentiment is the biggest enemy of business growth. Sentiments and attachment destroys our sense of reasoning and judgement, Sometimes we fell to realize that we have been taken over by these strong enemy of sound reasoning and critical analysis and hence end up signing wrong deals. *As a real estate investor, you need to free your mind from every attachment and sentiment. You in in the business to make profit so stay open minded and keep hunting for who has the best deals!*

Whether you are a first time investor or a seasoned investor, understanding this mistakes and taking proper precautions will not only save you time and money, but will also fetch you the best deals with perfect peace of mind. The easiest way to go about any real estate investing is to get a seasoned expert with proven record.

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