Real estate investing can be a great way to build wealth, but there are also some potential pitfalls that investors should be aware of. Here are some of the most common pitfalls of real estate investing:

1. Market risk: Real estate markets can be unpredictable, and prices can rise and fall rapidly due to a variety of economic, demographic, and political factors. This can lead to fluctuations in property values and rental income.
2. Financing risk: Real estate investments often require significant upfront capital, and investors may need to take on debt to finance the purchase of properties. This can lead to risks associated with interest rates, loan terms, and overall financial leverage.
3. Property management risk: Managing rental properties can be time-consuming and requires a range of skills, including tenant screening, rent collection, maintenance, and repairs. Poor management can lead to vacancies, damage to the property, and other issues that can negatively impact returns.
4. Tenant risk: Tenant turnover and default can be a major risk for rental property investors. Screening tenants carefully and having a plan in place for dealing with non-payment or damage to the property is important for minimizing this risk.
5. Regulatory risk: Real estate investors must comply with a range of regulations and laws, including zoning laws, building codes, fair housing laws, and tax laws. Failure to comply with these regulations can lead to fines, penalties, or legal disputes.
6. Market liquidity risk: Real estate investments are relatively illiquid, meaning that they cannot be easily bought or sold. This can make it difficult to exit an investment quickly if needed.

Overall, real estate investing requires careful planning, risk management, and a deep understanding of the local market and investment risks. It’s important to do your due diligence, consult with professionals, and have a plan in place to mitigate risks and maximize returns.