What Makes You a Better Real Estate Investor?
First things first: Investing in real estate isn’t about getting more properties than anyone else, or seeing more returns than the next guy. It’s about improving your own financial situation. What’s great about that is you don’t have to compare yourself to others—and what they have or don’t have—to be successful. You just need to cultivate a few qualities that will serve you well in your investment opportunities:
A Business Attitude. There is a common misconception that real estate investments are easy money. Therefore, people often treat them as side projects. It’s fine if real estate investments are actually a side project for you, but they still need to be approached from a business perspective. Be clear on your goals for the short and long-term. Have a big picture in mind, and a strategy for getting there. Review your portfolio annually to cut unproductive investments. Successful property investment isn’t a whim; it’s a conscious choice.
Professionalism and Honesty. When your financial investments manifest simply as numbers on a page, it’s easy to make choices without ruffling too many feathers. But, real estate investing isn’t just numbers on a page. It’s people—tenants, partners, associates, clients, etc. Real estate investments are relationships. Treating others fairly, addressing concerns and complaints, and demonstrating integrity and professionalism go a long way. That sort of demeanor is where your true currency resides. Don’t neglect your relationships.
Knowledge of the Market. Laws, regulations, trends, consumer habits, mortgage rates, terminology, etc. are constantly changing, and vary from place to place. You can’t possibly make wise choices without staying on top of these important factors that impact the success of your investments. It’s also about knowing your risks. Be prudent.
Team-Focused. Successful real estate investing doesn’t require that you have a degree in all things real estate. It does require that you have a network. Surround yourself with a team of professionals and peers who can provide you with expertise, experience and insight. Include an accountant, a lawyer, a property manager and a mentor in property investment. Don’t forget business partners, or other relevant members of the real estate investment community. Invest in hiring professionals to help you protect your assets.
A Balance of Adaptability and Patience. You can make deliberate choices and still find that a real estate investment isn’t working. It’s important to be able to shift gears and change your plan, when necessary. At the same time, being patient with your investment will pay off in the long run. This isn’t penny stocks. It’s long-term stability.