1. A lot of first-time investors don’t function according to any kind of plan. Rather than buying now and planning later, investors ought to focus on making offers on multiple properties.

2. The notion that you can get rich quick. Investing in real estate can fetch you lucrative long term gains, but don’t labor under the misapprehension that you can make big bucks in a short span of time.

3. Flying solo. Do not think, even for a minute, that making money in real estate is a one-man endeavor; all successful investors have a carefully cultivated team of professionals (a real estate agent, a lender, a home inspector, an appraiser and a closing attorney) who lend their expertise when and where needed.

4. Paying too much. Another mistake you should avoid is to make excess payments for what you purchase. If your money has been sunk into a deal which, for some reason fouls up, then not only will you incur a heavy loss, but you’ll also be left with no cash to salvage the situation

5. Not doing the necessary groundwork. If you’re not thorough with the basics of real estate, then investing in it isn’t such a good idea. Investors who want to succeed always ensure that they’ve done their homework.

6. Taking unnecessary risks. Always remember to be cautious. Investing in real estate is a risky business, and it doesn’t hurt to take a few extra precautions before going ahead with a deal.

7. Calculating money flow wrongly. Buying, renting out or holding in real estate investment can only go unhindered if there is adequate cash flow. Investment in real estate is a futile endeavor for those who can’t maintain. Allocate your budget in such a fashion as to have your expenses (taxes, advertising costs, insurance, etc.) taken care of.

8. No escape from your own deal. A smart thing to do is to have lots of options or plans for the property you purchase. If you do this, you’ll be ready for the ups and downs in real estate.

9. Turning down the volume. A greater volume of real estate transactions increases the profit you make by softening the effect of marginal deals.

10. Faulty estimates. The worst thing you can do when rehabilitating your house is miscalculating. If that happens, you stand to lose lots of money on your deal. The ideal thing to do is to find out whether you’ll be able to get the benefits at double your estimated time.