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30 Reasons Why People Lose Money In Real Estate By Roy Mc Donald


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Roy McDonalds life experience as a Real Estate agent has help him understand why people lose money in Real Estate this power point is 30 of those reasons. Social Media Marketing Brisbane | Gold Coast

Published in: Real Estate, Technology, Business
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30 Reasons Why People Lose Money In Real Estate By Roy Mc Donald

  1. 1.
  2. 2. <ul><li>Choosing the wrong transaction </li></ul><ul><li>Not conducting proper research </li></ul><ul><li>Listening to real estate agents hype about future and unrealistic selling prices </li></ul><ul><li>Targeting the wrong purchasers </li></ul>
  3. 3. <ul><li>Targeting the wrong real estate product </li></ul><ul><li>Pricing the product incorrectly </li></ul><ul><li>By not presenting the real estate product in its best light </li></ul><ul><li>Choosing the wrong agent, there are buyers agents and there are sellers agents, and remember that agents are always right, even when they are wrong </li></ul>
  4. 4. <ul><li>Thinking they can change the market </li></ul><ul><li>Overestimating the numbers and the speed at which a transaction can be done </li></ul><ul><li>Not managing their cash flow </li></ul><ul><li>Not arranging cash reserves for the future battles </li></ul>
  5. 5. <ul><li>Not taking the time to create supportive relationships with the real estate agents, the lenders, solicitors and their team </li></ul><ul><li>Trying to do everything themselves by being a lone wolf </li></ul><ul><li>Failing to have an intention to get their house in order to grow their real estate business so they can become free </li></ul><ul><li>Continuing to do what they have always done expecting a different result </li></ul>
  6. 6. <ul><li>Keeping underperforming real estate on the hope it will perform </li></ul><ul><li>Not having a strategy for trading residential and buy and hold commercial </li></ul><ul><li>By not understanding adding value and leveraging that increased value. </li></ul><ul><li>Being driven by fear and not guided by their heart </li></ul>
  7. 7. <ul><li>Playing lose/win, win/lose or lose/lose as opposed to playing win/win </li></ul><ul><li>Being attached to the outcome and paying too much, remember one hundred fish to get one </li></ul><ul><li>Becoming overconfident and complacent with their feasibilities </li></ul><ul><li>Forgetting to add value and leverage it. Paying too much </li></ul>
  8. 8. <ul><li>Over exposing themselves to the market with product and loan repayments </li></ul><ul><li>Forgetting that terms are more important than the purchase price </li></ul><ul><li>Forgetting that the profit is made at the time of purchase </li></ul><ul><li>Over capitalising their investments </li></ul>
  9. 9. <ul><li>By not understanding their burn rate, the amount of money they are going through to maintain their position </li></ul><ul><li>The biggest single reason, trying to do everything themselves and being emotionally unfit, going into reaction mode rather than being proactive </li></ul>
  10. 10. <ul><li>Bonus Rules </li></ul><ul><li>Your goal is to deliver the most value to your purchaser at a price that is both affordable for your purchaser and profitable to you </li></ul><ul><li>Rarely is the real estate transaction the reason for success. In reality it is the execution of the real estate transaction that is the primary driver of the success </li></ul><ul><li>The real estate business is about sowing and reaping. You must remember to always sow and never forget to reap and ensure you get it in the right order </li></ul><ul><li>You will have some learning experiences and make sure you do learn from them </li></ul>
  11. 11. <ul><li>Reinvent yourself every ninety days </li></ul><ul><li>Remember you are your communication, George Bernard Shaw said, </li></ul><ul><li>1. Tell them what you are going to tell them. 2. Tell them 3. Tell them what you just told them </li></ul><ul><li>Manage your time and maximise your performance </li></ul><ul><li>Manage your weaknesses and maximise your strengths </li></ul>