“Ninety percent of all millionaires become so through owning real estate.” – Andrew Carnegie
Indeed, investing in real estate is one of the fastest ways to become very wealthy. Many people have made a fortune through real estate strategies such as flipping houses, buying rental property, wholesaling, and joint ventures. However, success in real estate is not just about implementing a certain strategy or even having the right qualifications. Self-made real estate millionaires tend to exhibit certain habits that cause them to be successful. By learning the secrets of real estate millionaires, you will also set yourself up for success in the industry.
Wondering how to become a millionaire in real estate? Here are 8 habits of millionaires in real estate to adopt today:
Real Estate Millionaires Set Clear Plans
Successful investors have a clear business plan which helps them accomplish short and long-term goals. The real estate investment plan helps them see the big picture, and thus keep focus on their goals instead of the minor setbacks along the way.
Real Estate Millionaires Stay Organized
Many real estate investors fail due to disorganization. Being forgetful, missing deadlines and losing contacts end up costing real estate investors dearly. Real estate millionaires use planners, organizers, and to-do lists in order to stay on top of things. They prioritize tasks to ensure that everything gets completed. In addition, successful real estate investors have designated files for income and expenses to monitor where their money is going.
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Real Estate Millionaires Build Connections
Rich real estate investors don’t operate in isolation. They connect with other successful investors by attending physical networking events or joining relevant groups on social media. Such connections provide an opportunity to ask questions, share advice, and get referrals for potential sellers, buyers or partners.
Real estate millionaires also build relationships with real estate professionals such as attorneys, real estate agents, inspectors, appraisers, and mortgage brokers. Such experts come in handy when you need professional advice.
Grant Cardone is a well-known entrepreneur with a real estate portfolio valued at about $900 million. He reveals that most of his knowledge in real estate did not come from academic study, but from meeting agents and looking at different deals.
Real Estate Millionaires Build a Reputation
Investing in real estate is about who knows you and who you know. Therefore, your reputation will either make or break you. Most successful real estate investors have built a reputation for being fair and trustworthy in their dealings. They treat business partners, tenants, associates, and contractors with respect. Building a good reputation makes it easy for successful real estate investors to attract even more deals.
Real Estate Millionaires Stay Updated
‘When you stop learning, you start dying’ – Einstein
Successful real estate investors are always keeping up with the latest trends in the industry. They analyze the economic factors influencing the housing market and keep track of changing mortgage rates, job data, consumer aspirations, and taxation changes. Investors can stay educated by attending classes or seminars, or reading articles and books about real estate investing. This helps them make more informed investment decisions.
Jered Sturm is a real estate mogul whose company owns and manages over $30m in assets. He attributes his success to continuous learning through listening to audiobooks and podcasts.
Real Estate Millionaires Work with the Right People
Finding and hiring the right people is one of the best ways to grow your real estate investment portfolio. Having a great team will make it easy to delegate duties to ensure that whatever needs to get done, gets done. Successful real estate investors work with people such as:
- Accountants – Taxes make up a large part of a real estate investor’s annual expenses. Trying to figure out the latest tax laws can be very stressful and time consuming for any investor. Successful real estate investors hire the services of a certified and reputable accountant to take care of the business’ books. Having such a professional on board allows them to enjoy great savings from tax breaks.
- Property managers – A property manager is responsible for advertising the rental property, screening tenants, preparing leases, collecting rent, handling maintenance, and enforcing evictions. Hiring the right one can make all the difference in the success of a rental property owner.
- Real estate agents – Realtors understand the housing market in their area and can help investors find an investment property in the best neighborhood.
- Contractors – Plumbers, landscapers, and other contractors come in handy for property maintenance and repairs.
Real Estate Millionaires Stay Involved
Sharp real estate investors don’t just buy investment property, delegate roles, and move on to the next deal. They always stay involved in the running of their properties. Even when they hire a property manager or professional property management company, they are always visiting their properties, asking for reports, and checking financials occasionally to see if things are going well. This helps prevent mismanagement by the people that have been assigned different roles.
Real Estate Millionaires Find a Niche
Most real estate millionaires focus on a specific niche for investment. To succeed as a real estate investor, you need to figure out what would be the best real estate niche for you. Will you focus on commercial or residential properties? If you opt for residential properties, will you specialize in multi family homes, condos, single family homes or apartments? You should also think about your real estate investment strategy. Will you specialize in house flipping, traditional rental properties or vacation homes?
Sidney Torres and Sean Conlon are real estate millionaires that specialize in renovating houses. They even have a reality show – The Deed – that showcases stories of investors venturing into house flipping.
Start Adopting These Habits of Successful Real Estate Investors Today
Anyone can learn how to get rich in real estate. However, building a real estate business takes time. But with consistent application of the principles mentioned above, you will grow and eventually be a real estate millionaire.
Ready to get started? Read How to Become a Real Estate Mogul: A Step-by-Step Guide