Audio Coursesby JellypodLesson 03 of 10
Overview
Mia Arnold: Hey everyone, welcome back to Expert Real Estate Secrets! I’m Mia, and I’m here with our very own Real Estate Expert Don DeRosa. Today, we’re diving into the five mistakes every new investor makes—trust me, we’ve both been there, right Don?
Don DeRosa: Oh, absolutely. If you’re listening and you’re new, odds are you’re making at least one of these mistakes. I know I did. And the first one? Focusing on the property instead of the problem. It’s so easy to get caught up in the numbers, the paint color, the ARV, but you forget there’s a real person on the other side of that deal.
Mia Arnold: Exactly. I remember early on, I’d walk into a house and immediately start thinking, “Okay, what’s it worth? How much can I get off the price?” But I wasn’t asking the seller why they were selling. And that’s where the real opportunity is. When you dig into their motivation, you can structure deals that actually solve their problem—not just chase a discount.
Don DeRosa: Yeah, and that’s where creative deals come from. If you’re just looking for a cheap house, you’re missing the point. Ask better questions. Find out what’s really going on. Sometimes the best deals aren’t about price—they’re about terms, or timing, or just giving someone peace of mind.
Mia Arnold: It’s like we talked about in our episode on negotiation—real estate isn’t just about houses, it’s about people. If you focus on solving the seller’s problem, you’ll find deals other investors miss. And honestly, you’ll feel better about the work you’re doing, too.
Don DeRosa: Alright, let’s talk about the next big one—math mistakes and analysis paralysis. I’ll be honest, my first rehab was a disaster. I totally underestimated repairs. I thought, “How hard can it be?” Well, turns out, pretty hard when you forget about things like holding costs, insurance, utilities, and all those little surprises that pop up. in fact, If you created a check list of everything you shouldn't do, I think I would have checked all of them.
Mia Arnold: Oh, I’ve been there. And then there’s the other side—overanalyzing every deal, waiting for the perfect one. I see so many new investors get stuck because they’re looking for a unicorn: no risk, huge profit, zero hassle. That deal doesn’t exist. You gotta know your numbers, set your buy box, and when a deal meets your criteria, take action—even if it’s not perfect.
Don DeRosa: Absolutely. And don’t guess on repairs. Use a checklist, add a buffer—at least 15 to 20 percent. And always factor in your monthly holding costs from day one. If you’re waiting for the perfect deal, you’ll be waiting forever. Good enough is good enough if the numbers make sense.
Mia Arnold: And if you’re not sure, ask someone who’s done it before. That’s what your network is for. Which, actually, brings us to our next point…
Mia Arnold: Don, you always say, “Don’t go it alone.” And it’s so true. New investors think they can figure it out as they go, but then they’re scrambling for a contractor or a title company at the last minute. That’s a recipe for panic.
Don DeRosa: Yeah, I learned that the hard way. I had a flip that just wouldn’t sell, and if I hadn’t had a backup plan—and the right people to help me pivot—I would’ve lost my shirt. You need a power team: agents, contractors, attorneys, lenders, other investors. Build those relationships before you need them. Network regularly, even if it feels awkward at first.
Mia Arnold: And don’t just have one plan for your exit. Ask yourself, “What’s Plan B? What’s Plan C?” If you only have one way out, you’re setting yourself up for trouble. Run your numbers for more than one exit—wholesale, rent-to-own, owner finance, whatever makes sense for that property and market.
Don DeRosa: Exactly. The market can shift, or your original plan might not work out. Having multiple exit strategies is what keeps you in the game when things get bumpy. Always have multiple ways to buy and multiple ways to sell. Trust me, those are words to live by.
Don DeRosa: Let’s get into due diligence and market timing. This is where a lot of new investors get tripped up. You need a checklist for everything—title searches, inspection contingencies, neighborhood analysis. Don’t just trust your gut or what the seller tells you. I always say, the palest Ink is better than the best memory.
Mia Arnold: And timing matters, too. Learn to read market cycles. Is it a buyer’s market or a seller’s market? Are prices trending up or down? If you buy at the wrong time, even a good deal can go sideways. I always recommend monitoring economic indicators and local data—things like job growth, inventory levels, days on market. It’s not glamorous, but it’s how you make smart decisions about when to buy or sell.
Don DeRosa: Yeah, and make it a routine. Don’t just check the market once and forget about it. Keep tabs on what’s happening so you can adjust your strategy if needed. That’s how you avoid getting caught in a downturn.
Mia Arnold: Alright, let’s talk paperwork. I know, it’s not the fun part, but it’s so important. Every deal needs a standardized documentation process—purchase agreements, inspection reports, repair estimates. If you’re not organized, you’re asking for trouble.
Don DeRosa: And don’t just sign whatever someone puts in front of you. Consult with a legal professional before you sign anything. I’ve seen too many investors get burned because they didn’t understand a contract or missed a key clause. Keep organized records of everything—emails, texts, contracts. It’ll save you headaches if you ever get audited, need to refinance, or end up in a dispute.
Mia Arnold: It’s like insurance—you hope you never need it, but when you do, you’ll be glad you have it. And honestly, it makes your business look more professional, too.
Don DeRosa: Now, let’s get into financing. There are so many options—traditional mortgages, private loans, seller financing. Don’t just rely on one source. Diversify your funding so you’re not stuck if one lender says no.
Mia Arnold: And have a plan for managing your debt. Know your debt-to-equity ratios, keep an eye on interest payments, and make sure your cash flow stays healthy. If you’re not sure how to put together a loan package or financial statement, get help. The better your paperwork, the better your chances of getting good terms.
Don DeRosa: Yeah, and don’t be afraid to ask for what you want. Lenders want to see that you’re organized and you know your numbers. That’s how you get the best deals.
Mia Arnold: Negotiation is where a lot of new investors freeze up. But it’s not about being pushy—it’s about listening. Ask questions, really listen to the seller’s needs, and use data to back up your offers. Don’t just throw out a lowball and hope it sticks.
Don DeRosa: Right. Use comps, show your math, and be transparent. That builds trust, and trust leads to better deals. If you’re honest and clear, sellers are more likely to work with you—even if your offer isn’t the highest. And remember, negotiation is a conversation, not a battle. Build rapport, and you’ll get further than you think.
Mia Arnold: And if you get stuck, go back to what we talked about earlier—focus on solving the problem, not just getting a deal. That’s how you create win-win situations.
Don DeRosa: Alright, so you’ve got the deal—now what? Closing is where a lot of things can go wrong if you’re not careful. Have a checklist: final walkthroughs, make sure all contingencies are satisfied, verify title clearance. Don’t assume anything is done until you see it in writing.
Mia Arnold: And after closing, have a plan. Are you renovating? Placing tenants? Prepping for a sale? The smoother your transition, the faster you realize value. And don’t forget to review your portfolio regularly—look at property performance, market conditions, and make adjustments as needed. That’s how you grow and stay ahead.
Don DeRosa: Yeah, real estate isn’t a one-and-done thing. It’s about building systems and habits that keep you moving forward. And hey, if you want a free checklist of these five mistakes, check out the link in the show notes. We’d love to hear your questions for a future episode, too.
Mia Arnold: Absolutely. And if you want to go deeper, join our community or check out our coaching. We’re here to help you avoid these mistakes and build a business you’re proud of. Don, thanks for sharing your stories today—it’s always good to know we’re not alone in making mistakes.
Don DeRosa: Thanks, Mia. And thanks to everyone for listening. and dont forget to check out Expert Real Estate Coaching dot com for all your educational needs. We’ll see you next time on Expert Real Estate Secrets. Take care!
Mia Arnold: Bye everyone! Don, have a great week. See you soon!
