There are a lot of mistakes that can be made in Real Estate. In fact, many savvy investors still make mistakes or have overcome huge mistakes in their investing careers. The keys are to recognize, avoid, learn and move forward from these potential pitfalls.

Here are 7 Key Mistakes Beginner Real Estate Investors Make.

1. Speculate – Most new investors follow the herd, listen to the media and buy with the hope the property will appreciate. This is as much of a gamble as hand picking stocks or going to the Casino. Buy below market properties that cash flow.

Penny stocks are defined as shares that trade at a price at or below $2.00. The Security and Exchange Commission (SEC) considers anything up to $5.00 as a “penny stock,” however this value is actually close to the price of many mainstream stocks. Many shares trade at only a few cents, however, this does not imply that the companies’ stocks are worthless. These stocks may be from relatively new companies or emerging fields.

If the stocks start at just under a dollar, how can an investor hope to become rich in the end? Penny stock investments may begin with a small price to pay, but the gains some investors realize explain the feeding frenzy that’s arisen over this type of investment opportunity.

To get the most riches out of your penny stock investments, it’s important that you pick up information about certain companies before the news hits the primary media stream.

Many people believe that accumulating wealth is a random event. Or it is pure luck that determines who is wealthy and who isn’t.

It is true that occasionally someone wins the lottery or receives an inheritance and becomes wealthy. Usually immediate wealth is temporary however. Studies have shown repeatedly that most widows who receive a life insurance death settlement either spend, loan out, or lose the money they received within three years of receiving it.

Wanna own shares of some of the best-known companies in America and beat the pants off of most mutual funds? It's shockingly easy with index investing. In the next 60 seconds, we'll show you how to do it.

0:60 What is an index fund?