10 Reasons New Real Estate Investors Fail, and What to Do About Them

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Setting out as a real estate investor? Congratulations. 

But what could go wrong? You’ve heard the horror stories from friends, family, or people you see on TV, but you’re determined to prove them wrong — and get rich.

But before you jump in with both feet, it helps to learn some lessons from those that failed first. From slacking off on research to underestimating respective costs, we’ll cover a handful of pitfalls that could tank your property investment efforts. Most importantly, you’ll learn a proven trick around each of these challenges and increase your odds of success. 

Let’s get started with some numbers.

How Many Real Estate Investors Fail?

There’s no universal way of figuring out this number, but a Biggerpocket post estimates that 95% of aspiring real estate investors never purchase a property.

So what’s going on? 

There are plenty of reasons to consider real estate investment. Perhaps you want to build an investment portfolio that will help you retire early, or you’ve got a ton of cash and want to see what happens when you sink your money into something substantial. Either way, it’s essential to know what you’re getting yourself into—and there are plenty of ways that getting setting out can go wrong.

10 Reasons New Real Estate Investors Fail

Here are some common mistakes beginner real estate investors make:

  • Lacking a meaningful “why” and “how”
  • Insufficienct education
  • Poor market research
  • Taking too much risk
  • Poor negotiation skills
  • Analysis paralysis
  • Understimating costs
  • Not knowing when to pull the plug
  • Trying to to it all by on your own
  • Being impatient

1. Lacking a meaningful “Why” and “How”

One of the main reasons beginner real estate investors fail is working with a vague business plan. If you don’t know why you’re doing it, or if your reasons need to be more robust or precise, then it’s unlikely that you’ll be able to stick with it through the rough patches.

Having a plan doesn’t mean seeing into the future. It’s about setting the direction for your venture and outlining the steps to realize your investment goals. A solid real estate business plan includes: 

  • Company values and mission
  • Short-term and long-term goals
  • SWOT analysis 
  • Best investment strategy for your property choices and goals
  • Potential marketing efforts
  • Applicable costs and financing options
  • Backup plans and exit strategies

2. Insufficient education

Failure to invest in the necessary education means you’ll never know if your approach makes sense. You keep running in circles rather than raking in profits and taking lessons. Plus, the market is constantly changing. So, if you don’t know how to keep up with it—or worse yet, if you don’t even know where to look for information—you could invest in properties that aren’t worth what they once were.

You can get most of the information you need online for free. That includes YouTube videos by successful investors. They’ve made mistakes along the way, just like you will, but they’ve also learned from them (and so will you). Other lower-cost alternatives for new real estate investors include library books and local meetups. 

3. Poor market research

The market is your playground—the more you learn about it, the better you can play. 

Without market research, you could invest in a poorly performing property. An attractive price tag or a property might tempt you, but you could end up overpaying if you don’t know how much comparable properties are fetching.

Real estate investing can be very profitable, but only if you do your homework and take the right step:

  • Understand the local market. Right from the listing prices, how much rent you can charge, demand level, and whether or not there are any incentives or programs in place that would benefit your business.
  • Understand economic trends.
  • Familiarize yourself with the legal and financial implications of real estate investments (which vary from state to state)

4. Taking too much risk

The world of real estate investing is full of opportunities for those willing to flex their risk-taking muscles. But frustrations are likely if those risks aren’t calculated correctly or weighed against short-term gains versus long-term goals. For example, if you were to put all your money into just one investment and lose it all to a bad deal or poor timing, then you’d be out of luck and probably bankrupt. 

You need to be smart about how you approach real estate investment. So many variables are involved: the economy, market trends, local regulations and politics, construction costs and timelines—the list goes on and on. 

While certainty is limited when it comes to investing, there are some things we can do to increase our odds of success. Learn more about reducing real estate investment risks. 

5. Poor negotiation skills

During real estate transactions, you’re always bartering. And the last thing you want is to make it easy for people to take advantage of you. Proper negotiation comes in here. It’s what gets real estate deals done satisfactorily. 

Whether it’s a buyer and seller coming to terms with a price or hiring a professional team, creating win-win scenarios is critical. But can’t just assume that everybody will get what they want in every deal, so you have to be prepared to compromise. Even if both parties aren’t delighted with the outcome or solution reached during negotiations, at least they got something.

Consistency is the secret sauce when mastering real estate negotiation strategies. The more you do it, the better you’ll identify what works and what doesn’t for different types of people (and real estate properties).

6. Analysis paralysis

It’s a classic story: you’re a  beginner investor who spends too much time analyzing options but never takes the plunge. You’re worried about losing money. So you wait for the perfect moment. One month goes by. And several others after that. And then, one day,  you look back at all the time (and potential money) you’ve lost because of your fear. And all of a sudden, it hits you: “I could have been investing in real estate since I first got into this!”

Understandably, you want to make sure you’re making the right move. But as with any investment field, you don’t have to get everything perfect from the beginning—you’ll learn by acting. But again, don’t rush into things; look at each step as an opportunity for learning and growth.

7. Underestimating costs

Let me break it down for you. 

A typical investment property requires about $543,000. The estimated 20% downpayment is $108,720.  That’s before we even get into maintenance or taxes. That can be a huge obstacle, especially if you’re buying in an expensive market like Newbury Park, San Francisco, or New York City.

And then there are all the closing—attorneys, insurance, title deed…you name it. If you don’t have enough cash to cover these expenses, your business plan is DOA. Consider also unexpected costs. You should also understand how loans work and how they can impact your ability (or inability) to make payments on time. 

Bottom line: ensure your finances are in order before you sign on the dotted line. 

8. Not knowing when to pull the plug

It’s easy to get carried away by the rush of excitement when dipping your toes in real estate investment. After all, there’s nothing like the feeling of making a deal that will make you money—and maybe even change your life.

But things rarely work out exactly as we hope. 

So, what happens when you realize your investment isn’t as promising? One of the biggest mistakes you could make is holding on to such ventures for too long. And this can happen for two main reasons:

  • Being too optimistic. You want to see the project through until completion, hoping things will get better in the future.
  • You feel guilty about walking away from a project because of how much work and personal sacrifices went into getting it off the ground.

It’s essential, not only for your finances but also for your mental health, to recognize when an investment isn’t working out and cut your losses early enough.

9. Trying to do it all on your own

Another reason new real estate investors fail is trying to be a jack-of-all-trades.

It’s tempting to think that handling everything yourself will save you money, help you gain more experience faster, or save you the hassle of delegation. But the truth is, if you don’t have a team that can help fill in the gaps (whether legal or accounting advice) or provide mentorship and guidance on making informed decisions, you could be setting yourself up for frustrations..

Delegating tasks to professionals—whether an accountant, an attorney, or a property manager—often makes sense in property investment But while it’s important to keep tabs on your investment portfolio so that nothing slips through the cracks, there’s such a thing as being too hands-on. Micromanaging everything will end up frustrating everyone involved and slowing down progress. 

Work with a mentor, too— it’s like having a safety net underneath you. Along with being your source of inspiration and motivation, they can help you stay patient by providing guidance and perspective,

10. Being impatient

The cost of impatience is high for real estate investors. It can lead to a higher purchase price, leaving less money for renovations and other associated costs. When you rush into buying a property without doing proper due diligence, you could spend thousands more than necessary. Such scenarios could have you feeling a loss of control over what happens next in your venture and life, leading to emotional distress. 

It takes time to learn the ropes of real estate investing. You want to take your time with decisions with your money, taking care not to expect too much too soon.

Patience goes beyond waiting until something happens. It also involves knowing how best to handle things that don’t go according to plan. That’s especially when those plans include setbacks like losing money due to unforeseen circumstances such as market fluctuations.

Bottom Line

And folks, I hope this list helps. You’ll want to research different approaches to real estate investment, look into your legal rights and obligations, and build a network of trusted professionals to work with you. 

Sure, it might take a while to get your feet wet. But with the proper knowledge and undying consistency, you can make it happen. 

And if you fail? That’s not necessarily a bad thing—even the most seasoned investors run into trouble from time to time. The key is to learn from your mistakes. 

All the best in your new venture!

Hollywood Beach, Oxnard, CA, Real Estate: What To Know

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Thinking about Hollywood Beach, Oxnard, CA, real estate? Wondering what types of properties are available here and at what price? You also want to know the kind of amenities and leisure opportunities this neighborhood offers, whether you’re looking for your next real estate investment opportunity or dream home for your family. This guide has covered the essentials so you make informed decisions.

Hollywood Beach, Oxnard is a beautiful neighborhood designed with the comfort and convenience of the residents in mind. While it’s accessible to all, its mile-long, sandy beach surprisingly remains peaceful even during the busier holiday seasons. It’s unsurprising that the quiet vibe ranks among the selling points of this economical alternative to Malibu.

Read on to learn more about Hollywood Beach, CA, real estate, neighborhoods, schools, shopping and dining locations, and more.

Where is Hollywood Beach, California?

Hollywood Beach, Oxnard sits between the Pacific Ocean and Channel Islands Harbor, making it an ideal location for water sports enthusiasts and beachgoers. It’s a 1.3-hour drive from Los Angeles, about 30 miles from Thousand Oaks, a 36-min drive from Santa Barbara, and 31.7 miles from Malibu.

Developer Fred J. Cutting dubbed this serene coastal community “Hollywood-by-the-sea” in 1926, following its early appearance in films such as Bound in Morocco (1918) and The Sheikh (1921).  He leveled the dunes and laid out 100 individual lots originally featuring beach cottages. The establishment evolved into the 60s when the introduction of a waterway and jetties separated the seamless beach into two neighborhoods—Hollywood Beach and Silver Strand. Over time, the smaller dwellings expanded into larger luxury homes.

When exploring the available options for Hollywood Beach homes for sale or rental properties, we recommend engaging a competent local real estate agent committed to turning your vision into a reality.

Hollywood Beach Homes Overview

Hollywood Beach, CA, homes for sale are ideal for families, retirees, and seasoned investors looking for luxury living at a lower price than in Malibu. They range from large estates to cozy cottages – some built with traditional Mediterranean-style architecture, which blends nicely with the stunning ocean views. 

Hollywood Beach, Oxnard homes are thoughtfully designed with California-casual comfort in mind. They typically feature two to five bedrooms and 1-5 bathrooms, and range in size from 925 to 3,810 square feet.

Architectural details and designer touches include granite countertops, custom wood cabinets, walk-in closets, crown moldings, washer/dryer connections, air conditioning window units, and skylights. Most units include a 2-car garage with direct access to the living spaces. 

Typical Homes for Sale in Hollywood Beach, Oxnard, CA

The Hollywood Beach Oxnard real estate primarily comprises small to medium-sized single-family homes and apartment complexes. These units start in the upper $500’s.

The possibilities are endless with Hollywood Beach homes in Oxnard. An oceanfront deck gives you a whole new perspective of the beauty surrounding you. You enjoy the luxury of taking in the fresh air from your open concept downstairs and watching the waves crash against the rocks below your private deck. 

The floor plans vary, including homes with oversized master bedrooms. Also available are homes with three-car garages, sprawling backyards, and luxury features like swimming pools, tennis courts, spas, and an RV storage area. 

Most individuals exploring homes for sale in Hollywood Beach, CA will want a well-designed kitchen with ample cooking and storage spaces. Built-in cabinets with pull-out drawers are a common highlight here. You might also consider a custom kitchen island—an excellent solution for maximizing floor space or when you want to spend time with your loved ones in the kitchen

While we may not discuss every feature and amenity in Hollywood Beach Oxnard properties, we highly recommend starting with listing the key qualities you desire. After which, consult with an experienced local real estate agent.

Real Estate Prices and Overview

According to NeighborhoodScout, Hollywood Beach real estate is costlier than over 78% of California communities and about 95% of US neighborhoods. But this is not too surprising considering the community sits near the ocean and has low crime rates.

Most housing units here date back to between 1970 and 1999, but you will find a smaller inventory constructed between 1940 and 1969. 

Hollywood Beach, Oxnard, houses for sale range from single-family units, condos to townhomes. They vary in prices, too, with most options falling in the $500K- $950K range. A more luxurious option could set you back over $1.2m. 

As of February 2023, the median list price of Hollywood Beach, Oxnard, homes for sale is $867K, a 13.2% drop from last year. The median list price per square foot is around $722 and homes stay on the market for about 64 days.

Despite the drop in median list price and the <100% sales–to-list ratio, Hollywood Beach real estate remains a seller’s market. It’s where the available homes for sale cannot meet the current demand for housing. The opposite is the buyer market, where homes for sale exceed the interested buyers.  

Based on Realtor.com’s February 2023 data, 3 of the listed homes for sale in Hollywood Beach, CA, are single-family homes ranging between $1.4 and $4.4m. For comparison purposes, the inventory of single-family homes for sale in Newbury Park, CA, exceeds 40, with prices starting from $699K to $16.5m.

Hollywood Beach Apartments for Rent

Averaging $3,113 per month, Hollywood Beach rentals are costlier than 71.3% of their California counterparts. The average size of an apartment in this neighborhood is 928 square feet, with specific sizes varying with the unit types.

 Things To Do in Hollywood Beach, Oxnard

Tranquil and fashionable, Hollywood Beach is a perfect place to start or end your day with an ocean swim or walk along the sandy beaches of Ventura County. 

While the weekdays are the quietest, weekends are synonymous with families longing for a beach day, residents cruising on golf carts and bikes, and visitors enjoying a moment away from the hustle and bustles of their cities. 

Hollywood Beach, Oxnard, caters to the active and social lifestyle, with many activities for the young and old alike. You can embark on a fishing trip or sign up for a whale-watching expedition at the Channel Islands. Or you can stroll down the famous Port Hueneme Pier, which offers many family-friendly leisure opportunities, including BBQ and picnic spots, volley nets, and swings.

Hollywood Beach

Hollywood Beach, CA, homes

Image source

Popular activities at Hollywood Beach include:

  • Surfing
  • Swimming
  • Suntanning
  • Building sandcastles
  • Beachcombing
  • Beach volleyball

Amenities include public restrooms, beach wheelchairs, and free parking. Dogs are permitted before 9 am and after 5 pm, provided they are on a leash and under control. However, open flames are prohibited, including portable grills and fire pits. 

The beach is also abundant in wildlife, including dolphins. When you see seals and sea lions on the beach, usually they are resting. They often come out of the water to shake off and sunbathe for a while. And while they are not usually dangerous to humans, remember these are pretty unpredictable wild animals. So, keep your distance.

Nearby Oxnard beaches include Oxnard State Beach and Park, Mandalay State Beach, McGrath State Beach, and Silver Strand Beach

Nearby Attractions

Hollywood Beach homes offer easy access to some of the most impressive golf courses in Oxnard, including:

  • River Ridge Golf Club
  • Sterling Hills Golf Club
  • Las Posas Country Club

A twelve-minute drive from Hollywood Beach and nestled on 800 Obson Way is Oxnard Performing Arts Center— a 1,604-seat complex that offers numerous cultural and entertainment opportunities. 

 If live performances do not tickle your fancy, consider the Mullin Automotive Museum at 1421 Emerson Avenue, Oxnard. This privately owned facility specializes in classic French automobiles and grand Prix race cars manufactured in the 1930s and 1940s. Also on display at the Mullin are contemporary paintings and Art-Deco furniture.

A 1925 Bugatti Type 35C

The Murphy Auto Museum on Eastman Avenue is a great alternative for car enthusiasts, offering an impressive collection of American vintage cars, including a 1932 Buick Town Car and a 1914 Model T. 

In Historic Downtown Oxnard is a special section known as Heritage Square. It is a lushly landscaped square block harboring 15 renovated, historic structures, including 11 Craftsman and Victorian-style homes owned by Oxnard pioneer families. The selection also includes a pump house, water tower, and church. 

Additional attraction sites near Hollywood Beach, Oxnard include:

  • Carnegie Art Museum
  • Marine Emporium Landing
  • Magnavino Wine Cellars
  • Channel Islands Maritime Museum
  • Herzog Wine Cellars

Does it Snow in Hollywood Beach, Oxnard?

It’s rare for Southern California neighborhoods, including Hollywood Beach in Oxnard, to snow. But it’s not unheard of. The turn of events on February 2023 shocked many residents who have called the area home for decades. A significant amount of snow blanketed Hollywood Beach (as seen here), with some neighborhoods, such as Calistoga, seeing snowbanks as deep as 8 inches.

Shopping and Dining in Hollywood Beach, Oxnard

Near Hollywood Beach, Oxnard, homes for sale are dining options for every taste. From simple American cuisine to regional ethnic foods. And while fresh seafood dominates the local menus, plenty of international cuisines are also available. Top-rated eateries in and near Hollywood Beach, Oxnard, include:

  • Hollywood Beach Cafe
  • Mrs. Olson’s Coffee Hut
  • The Lookout Bar & Grill
  • Sea Fresh Channel Islands
  • Waterside
  • Moqueca Brazilian Cuisine
  • HC Seafood
  • Fishermen’s Catch

The shopping scenes around Hollywood Beach include local supermarkets, renowned department stores, and small boutiques stocking the best of Oxnard’s local products. Nearby shopping malls include:

  • The Collection at RiverPark
  • Fremont Square Shopping Center
  • Esplanade Shopping Center
  • Seabridge Marketplace
  • Shopping at the Rose
The Collection at Riverpark

Hollywood Beach, Oxnard Schools

Hollywood Beach schools fall under two school districts: Hueneme Elementary School District and Oxnard Union High School District. Notable education institutions include:

  • Hollywood Beach Elementary School
  • Hueneme Elementary
  • Oxnard High School

Find Your Home in Hollywood Beach, Oxnard

Hollywood Beach, Oxnard, is a sentimental favorite for many families looking for an affordable alternative to Malibu. This neighborhood enjoys a pleasant year-round climate and offers a tranquil alternative to the more crowded beaches in Santa Monica. The beach amenities and nearby recreational facilities offer residents plenty of options to explore during their leisure time.

If you’re interested in living in Hollywood Beach, CA, work with a local real estate agent to find a home that matches your needs and budget. But don’t wait too long – it’s a hot market, and the sooner you start looking for your next home, the better.