You may have heard of Tom Wade, Joe McCall, and Rick Otton – investors who make remote investing look so easy you just feel like you can close a deal right now. However, it’s important to remember that transacting hastily can lead to missteps that could have dire consequences.
So before doing anything impulsive, keep these 3 investing mistakes in mind:
You Act Out Of Euphoria or Panic
In my recent topics, I have covered the top three untapped remote investing opportunities. And thrilling as it may seem, you need to be careful. Identifying an untapped opportunity doesn’t guarantee return on investment. Just because a spot looks great and the prices are still low, you still have to evaluate the “how you can make money” part. If you don’t have a plan to get passive income rolling, plunging in and buying either out of excitement or out of fear that someone else might buy it could lead to a financial bust.
You Take Your Eye off The Big Picture
If you have dreams of investing in property in many countries, always remember to keep the big picture in mind. The goal is to make money from your property, not to have properties for the sake of having them. Remember, owning and maintaining properties cost money. So the more you own, the more expenses you’ll have. The goal is to have more income flowing in to offset any additional costs you incur.
For example if you are targeting an untapped area, look at your goals, study the area’s economy and what are its prospects. Weigh the cost of investing now and say the outcome in about two, five or ten years depending on your goals, then invest an amount that even a 20 % market drawdown won’t get you shaken.
You Choose A Wrong Advisor
A remote investor is likely to access so much information online and from other sources – such as local solicitors, investors and even lenders. Selecting the right people is essential in making sound decisions. Your advisor should not in any way be a broker (one that will get commission after you buy or sell your asset), shouldn’t have any conflicts of interest and easy to communicate with.
All said, you need to know that any successful remote investor does an exceptional self-evaluation, is very patient and ensures that each move is in his or her best interest. A remote investor has to get the figures right before making any decision. Imperfect as we are, avoiding emotional biases and imagined image or values will go a long way in improving your investment mode and success rate.