Real estate investing is an option for anyone interested, regardless of the level of education or real estate license. If you are interested in investing in real estate, whether via flipping, property management, or whatever interests you, I have some tips that successful real estate inventors put into practice.
These are habits I maintain and have learned throughout my decade plus of building my business. Take these habits on board to keep in the know and prepared!
Habit #1: Look for Learning Opportunities
While it’s not necessary to learn in a classroom, there is a lot of learning to do. Some investors take classes, get their real estate license, and seek other ways to learn.
If you’re unable or uninterested in learning through courses or certifications, no problem. There are tons of ways to get all the information you need.
Here are the basics of what you should learn (and continue to freshen up on regularly):
- The ins and outs of the industry
- How to manage a business
- The market everywhere and in your desired area
- How to find properties
- How to negotiate
- How to create a timeline and budget
These are just some of the skills you need, for instance, you should have a handle on time management and leadership skills as well. Not to mention, the best way to learn is to DO.
Habit #2: Capitalize on Chances to Make Connections
Relationships in the industry can help in so many ways. Whether it be with lenders, real estate agents, accountants, contractors, or neighbors in neighborhoods you’re interested in.
Successful investors have a habit of capitalizing on every chance to make a connection and nurture relationships.
The better relationships and trust between you and others in the industry, the more referrals come your way. With established relationships, respect and attention matters. Tend to concerns, answer questions, and offer favors when you can.
Your network is crucial, so effective investors keep this in mind always.
Habit #3: Reach out
Reach out for help as needed! Make a habit of reaching out to your network for recommendations or advice, reach out to funding options… Investors cannot be afraid to reach out.
There’s many reasons you might need to reach out, don’t forget it’s okay to not do everything on your own. In fact, you absolutely shouldn’t do everything on your own, and success won’t come when you overstretch yourself.
Habit #4: Think About the Risks
Investors will not dwell on risks of real estate investing, but they will always have them in the back of their mind.
While there is a lot of earning potential in the industry, it’s not a get-rich-quick gig. Nor is it free of risks. If you’re looking to get into real estate, chances are you have been swayed in that direction by the hundreds of ads, successful stories, or HGTV shows.
Risks to real estate investing include hidden problems in homes, unpredictable markets, bad locations, negative cash flows, problem tenants, fees, liability, or business partner disputes.
Thankfully, you can make necessary changes to your business to lower your risk.
Habit #5: Trust the Experts
Build a team. Successful investors know they aren’t able to do it alone! Like I mentioned, reaching out and making connections are key habits of investors.
Instead of a DIY project beginning to end, take the time to build a team that is vetted and fully aware and in agreement of the project. I recommend running through timelines, budget, and assigning responsibilities to each member of your team early on.
While it can be tempting to do things yourself and save money, it can easily cost more the DIY way. By trusting the experts, your project will be done the right way, by an expert when you trust the experts.
A team might include a real estate agent, lawyer, accountant, business partner(s), lender(s), contractors, photographer, staging expert, and other experts you may need.
Habit #6: Stay Consistent
Consistency determines success. Like most things, you’re not likely to see instant gratification in real estate investing.
Consistency will not only separate you from the competition but also strengthen your skills as you get closer and closer to your goal.
A consistent real estate investment business might look like: Learn, act, learn from mistakes, repeat. Stay consistent with every habit listed above (learn, make connections, reach out, analyze risk, trust the experts).
It doesn’t mean you’re failing at your business if you make mistakes or don’t hit your goal. Keep moving forward, and take each project as a learning opportunity. You’ll be ahead of the pack if you maintain a consistent business and will see success.
Habit #7: Make a Plan
Like consistency, making a plan is a habit every successful business person does, regardless of industry. This is no time to “wing it!” A plan should be in place even before you put an offer in on a home.
Your plan is the foundation to success. Starting with a plan for your business.
Then, you’ll need a plan for any possible investment opportunity. If you’re interested in a flip property, you shouldn’t be making an offer before running through a realistic plan that adheres to your overall business plan.
Your plan for a specific property/endeavor will include (but is not limited to) the financial side, schedule and timeline for renovation, team members needed, and local market research.
BONUS TIP: Patience is a virtue.
The Keys to Success as an Investor
If you walk away from this blog with only one thing, let it be this: Consistency and a plan are MUSTS. Without these, you’re not going to see success.
Consistency will part you from others and put you on the fast track to profits. A plan is also crucial, as it will help you with decision making, create a timeline, and keep everyone involved in your investment project on schedule which will save time, money, and headaches.
It’s Your Turn to Invest
Want to tour properties with me and see what I look for ? In the Find Your Flip program you get to walk side-by-side as I assess three potential fixer upper projects. Build your knowledge and confidence to find the projects with the most potential. With proven tips and a wealth of information there’s plenty to use on your flipping journey.