Every investor has their bad day. We live in an uncertain world hence making investment mistakes is to be expected. No one has a crystal ball, and investment advice can also be wrong at times. That said, making an investment mistake based on sound judgment and wise counsel is one thing; making a mistake based on poor advice is another matter.

Real Estate like every other wealth driver has its pros and cons. Just as you can make generational wealth when you invest well, you can also lose all your savings when you invest wrongly. Since no man is born an expert, Real bad real estate investment usually comes from wrong advice. This bad investment advice is usually due to one of two reasons. The first is centered around an advisor that will repeatedly place their self-interest before that of the client. The second reason leading to bad advice is an advisor's lack of knowledge and failure to perform due diligence before making recommendations and taking action. Each type of bad advice has its own consequences for the client in the short term, but in the long term they will all result in poor performance or loss of money.

In the midst of all the advice, real estate investment can become a nightmare for an investor if they do the following things.

1. Allowing emotions cloud your judgement: While having trustworthy individuals around you is beneficial, you must know when to separate business from family. If you're doing business with relatives or friends, you should always expect professional service from them, just as you would from a stranger.

2. Not getting ample knowledge: Popular billionaire and Real Estate investor Warren Buffet once said "Never invest in a business you don't understand". This makes this particular mistake the worst of all. Before investing in real estate you should spend days, weeks, months, studying the market. Those who have lost money in real estate frequently did not fully comprehend what they were getting into until after they had made a commitment to buy a property. Certain decisions, such as purchasing a home or investing in real estate, cannot be reversed once made.

3. Trying to do it all by yourself: In order to save money, some investors try to do everything themselves. While self-education and reading are important, you must equally acknowledge the value of specialists who have spent years honing their skills. Before proceeding with any real estate transaction, consult with a real estate lawyer. Make advantage of a property consultant if at all possible.

4. Constantly floating the rent/price of your property: Many landlords believe that by raising their rents on a regular basis, they will be able to generate more money. However, the contrary is true. Consider all of the expenses associated with vacancies, from repairs to marketing. All of these expenses can quickly surpass any little rent increases. Raising the rent on a current renter only serves to make them more demanding by forcing them to examine what else is available. Maintaining the same rent provides the tenant a reason to stay and makes them satisfied. The longer they stay, the lesser their maintenance will be, as they will be less likely to call you to fix something out of fear of raising the rent.

5. Buying in bad locations: Real Estate is basically LOCATION! LOCATION!! LOCATION!!!. While a house may be extremely inexpensive, you may be putting yourself in a trap by purchasing it if the area is unappealing and unlikely to become so in the near future. While property always appreciates, you could only see a 10% property appreciation in 10 years on a property while others will see over 100% appreciation in that same time frame (READ: How to turn one million naira to two hundred million naira in a few years).

To be honest, no investment is risk-free, but that doesn't mean you should be terrified. Start by avoiding the blunders listed above, and you'll be well on your path to accumulating wealth through real estate. Investing in real estate isn't rocket science. Your chances of success will skyrocket if you go in with an open mind and avoid some of the most typical rookie investor blunders.

Truth