There are many different paths investors can take when becoming involved in the real estate industry, but it is a near-universal truth that the manner in which the investor perceives their investments will have a significant impact on determining their success or failure. The most common mistake investors make when entering the real estate market is to view a property in the same way they would view stocks or bonds.
An experienced investor and entrepreneur such as Weil would be quite likely to advise newcomers to real estate investing to look at things quite differently, as it is simply most ideal to perceive property investing as more of a business endeavor than an investment endeavor. This is because property investing requires more time, research, management and due diligence than many of the more traditional investment opportunities.
While investors tend to appreciate the relative lack of volatility associated with real estate values, the risks associated with the recent housing market collapse still exist. Avoiding the calamity that befell so many real estate investors requires a level of commitment to research and due diligence that often goes beyond what investors are willing to devote to a property investment.