Real estate investments can be extremely challenging. The profession is complex and can be overwhelming especially if you are just starting out. Real estate investing has become increasingly competitive as more and more investors join the arena. If you are new to the scene, you may be feeling intimidated, or way in over your head. As always, we are here to help you out. We have compiled a list of 7 things savvy and successful real estate investors have in common. How many of these do you think apply to you?
1. Successful Real Estate Investors Build Their Network
No matter what kind of business you operate in, building a strong network is the single most important thing to do. You might have heard of the saying “It’s not what you know, it’s who you know.” Today, the more correct and relevant version of this has become “It’s not who you know, it’s who knows you.”
Networking provides you with a platform in which you can meet influential people. Through networking, you get acquainted with like-minded individuals who challenge and support you by offering you advice, consultation, tips, etc.
The more individuals you meet, the better chance you will have at generating referrals, which in turn will lead to increased business. You get introduced to hundreds of connections who will open up endless opportunities for you. That is how networking is an excellent method to help you raise your profile among other investors and possible clients. Reach out, be seen and get noticed. Take initiative to introduce yourself and build professional relationships.
Another skill to pick up while networking is treating your networks well and maintaining good relationships with them. Your networks will vary from partners, clients, renters, associates, accountants, brokers, lawyers – basically anyone you have a business relationship with.
2. Successful Real Estate Investors Are Knowledgeable
Successful real estate investors know the market. The better you know your market, the sounder business decisions you will make and the more opportunities you will create for yourself.
Make sure you are familiar the current trends, mortgage rates, consumer habits, demand, and other factors affecting the market. Additionally, learn to predict and detect any changes in these trends to stay on top of the game.
Learn the lingo of real estate investment. You cannot not know what cap rate, or cash on cash return means. More importantly, pay attention to legal aspects of real estate investments. Conduct thorough research on state laws and regulations, legal terminology, etc. This is very important in order to avoid breaking or ignoring laws and having to deal with legal ramifications.
3. Successful Real Estate Investors See Real Estate Investments As A Business
This is one of the most important trait of being a successful real estate investors share. They treat real estate the way you would treat any other business. It is crucial to make short-term, intermediate, and long term plans to ensure your business goals and objectives are being identified and met. Keep your business as organized as you possibly can.
Keep yourself organized and well oriented. Build proper systems, improve efficiency, and sort out your finances. Visualize the bigger picture of your business to help you focus on forming and achieving your goals.
4. Successful Real Estate Investors Pay Attention To The Numbers
Keep track of the numbers. This is business after all. So if it doesn’t make financial sense, it is not a smart idea to go through with an investment. You must research, analyze, and compare rather than follow your intuition.
Never make decisions based on your gut feeling and never get emotional. We understand that sometimes, you may feel more inclined to invest in a single property more than any other, but if the numbers do not add up, simply walk away.
5. Successful Real Estate Investors Remain Ethical
A successful real estate investor should adhere to ethical rules and behaviors to build and maintain a solid reputation. Reputation is an important asset, it is difficult to build and can easily be destroyed. Remaining ethical will help enhance your credibility, and build and maintain a positive public image among investors and clients alike. Remaining ethical will naturally help you attract new customers, and uphold older ones.
6. Successful Real Estate Investors Seek Professional Help
Whether you are just starting out, or whether you have been in the business for a long time, it is always a smart idea to seek the help of professionals in the field. Make sure to speak with a reliable accountant regarding bookkeeping, a lawyer to help you out with tax laws, and anything else you cannot figure out.
You may also consult a realtor, one who belongs to the National Association of Realtors. They can help you with negotiation, the search for property, and share their knowledge with you in general, especially if you are just starting out.
Professionals are an excellent source of information and recommendation. Do not worry about the extra costs because it pays off in the long run.
7. Successful Real Estate Investors Know The Best Areas To Look For Property
Successful real estate investors use Mashvisor! Mashvisor helps you browse real estate properties, both traditional and Airbnb. We have multiple property listings in countless cities around the nation. Just search for the desired city, edit the filters for your search, and there you have it: Instant data that reduces what would have been months of research to a few clicks on your computer. We are here to help you figure out what your best investment is.
For a full tour on Mashvisor’s features and tools, watch our demo video here.