The question I get most often is, what is really important to succeed in real estate investing? So, its exciting news that you want to be a successful real estate investor. Let’s address at the outset one of the first questions you may have.
Is a Degree Necessary For a Career in Real Estate?
A degree is not necessarily a prerequisite to profitable Real Estate Investing (REI).
Whether you have a degree or not, there are certain characteristics that top real estate investors commonly possess.
It’s far more important to have the following 10 habits than a certificate
How Can You Become A Successful Real Estate Investor?
The answer is found in these 10 habits that highly effective real estate investors all share.
If you study these 10 habits carefully and take them to heart then you will be well on your way to success.
And if you can actually apply them in your investing career then, in due time, you will reap the financial rewards.
1. Make a Plan
At first, it’s understandable that your real estate activities may be just a sideline activity while you continue your 9-5 job but right from the start, you should approach your real estate activities as a proper business.
This is vital in order for you to first establish and then achieve your short and long-term goals.
Why this is so important?
A professional business plan will allow investors to visualize the big picture, which helps everyone involved to maintain focus on the primary goals of the enterprise.
A solid business plan will keep everyone, including your investors, organized and on task.
2. Know the Market
There are no shortcuts or ways around this one. Knowing the market means keeping yourself informed with many hours of research: Hard work is necessary to keep abreast of current trends, including any changes in consumer spending habits, mortgage rates, and the unemployment rate.
Why this is so effective?
This will help you to predict new trends, creating potential investment opportunities for you to really cash in on when the time is right.
As the great Wayne Gretzky said, “I skate to where the puck is going to be. Not where it has been.”
3. Be Honest
Most successful real estate investors maintain high ethical standards.
Effective real estate investors know it is much better to be diligent and fair rather than to cut any corners. In real estate investment, as in most things, honesty really is the best policy.
4. Develop a Niche
Taking the time to build a thorough knowledge and to deepen your level of understanding of a specific area of your market is integral to long-term success. The old marketing mantra, “get big, get niche, or get out!” still hold true.
It’s effective because:
Once a particular market is mastered, the investor can then move on to additional areas and also master them using the same methodical and in-depth approach.
5. Encourage Referrals
Effective real estate investors deal respectfully with all business partners, associates, clients, renters and anyone with whom the investor has established a business relationship.
It’s important that you pay attention to detail and always listen carefully to and respond promptly and courteously to complaints and concerns.
It is important because:
This respectful communication style builds rapport and the kind of reputation that makes others keen to work with you.
6. Stay Educated
It is imperative to stay up to date with all the laws, regulations, terminology, and trends that form the basis of the real estate investor’s business.
This is so important because:
If you fall behind, you risk not only losing momentum in pursuit of your businesses goals but there may also be costly legal ramifications if laws are inadvertently ignored or broken.
7. Understand the Risks
Real estate investors understand the risks, not only in terms of real estate deals but also the legal implications involved. Be prepared to be adaptable and flexible and adjust your businesses to reduce those risks.
8. Invest in an Accountant
Sharp real estate investors retain the services of a qualified, reputable accountant to handle the business’s books.
This is one of those areas where it is wise not to cut corners.
It is so important because:
Accountants understand current tax laws that can be complicated for you to stay abreast of.
It’s impossible to do everything yourself and doing your own accounts will certainly take time away from the most profitable areas of your day to day work.
Even from a pure dollars and cents perspective, the costs associated with using an accountant can be negligible when compared to the savings a professional accountant can bring to the business.
9. Find Help
Effective real estate investors often attribute part of their success to others, whether a mentor, lawyer or a supportive friend.
Rather than risk time and money tackling a difficult problem alone, leave your ego to one side. It is worth the additional costs to benefit from other people’s expertise.
10. Build a Network
A network is a type of group, comprised of a well-chosen mentor, business partners, clients or members of a non-profit organization.
This network will give you much needed support and these will be your peer group. They will help to keep you sharp.
It is so effective because:
Much of real estate investing relies on experiential learning.
A network can provide important support and create opportunities for both new and experienced real estate investors.
The team here at DDW wish you the best as you embark on your real estate investment career. The above tips will help you establish a solid platform to build future success.
We would be happy to help you take your first steps by getting you set up with a professional website.
To arrange that without delay, please connect with us here.