Investing in real estate is a ticket to becoming a millionaire since there are abundant opportunities for people from all walks of life to make tons of money. However, for you to succeed, you need to have certain traits that make you a successful real estate investor. If you are not born with these traits, you can certainly acquire them.
Traits of a successful real estate investor
#1 Knowledge of the market
Knowledge of the market is a must for a successful investor. You will need to have more knowledge than others about what drives the markets, things to watch out for and how to time market cycles. You will also need to be sharp enough to recognize shifting markets and take advantage of them in a timely manner before others do. The key is to build your knowledge to be able to recognize an under-valued property, estimating rehab costs, learning the economic factors that drive a market, analyze a property for cash flow, and many more. You can get some great real estate investing tips from expert realtors by visiting their website: www.sunnyrealty.com.
#2 Don’t jump the gun
You need to have the ability to judge when is the time to remain patient and when to move fast. This can put a lot of pressure on you since best deals go quick. However, jumping the gun at an inappropriate time is courting disaster. So, temper this pressure by wisdom and patience. Never set any monthly goals to invest in property, since you may end up signing a wrong deal. Also, get rid of the herd mentality of buying when everyone else does.
#3 Add value to property
You can build your wealth by buying cash flowing property and holding it till an opportune time. However, a better course will be to add value to it in additional ways by improving it. Gauge the best use for property and work towards achieving it. This way, you will make good deals, rather than finding them. You can improve your property by adding rooms, bathrooms, and the like.
#4 Cut to the chase
Look for things that take up valuable time without adding to the bottom line. You can cut to the chase by not answering every email or unscheduled phone calls, by not undertaking tasks that someone else is responsible for and suchlike matters. Focus on what really matters.
#5 Unwavering focus
Know what you want to do and pursue it relentlessly, not letting anything or anyone preventing you from achieving it. This requires developing a laser-like focus and adopting the ‘Pareto Principle’ that states 20 percent of efforts should result in 80 percent of results. Focusing on 20 percent essentials will get you 80 percent results.
#6 Cultivate relationships
Relationship building is the key to success, especially in real estate investing. Good relations with people who matter will get you your first deal, best pricing for construction, permits and approvals from the authorities and much else. Wealthy own yachts and vacation homes to entertain people who can extend them business loans and shower other favors. Cultivating relationships takes time and effort, so continue to hone this skill.
#7 Using other people’s money
There may be times when you end up with more deals and more opportunities than you have the capital for. If you have the ability to use other people’s money and resources, you can grow your wealth and the size of your portfolio. You can also create a win-win situation for those who are backing you up financially. It is realistic to assume that at some point you will need other people’s money.
#8 Hiring talent
You can only do as much and require the support of employees. By hiring talented and hard-working people in whom you can trust, you can get much more done than what you can do yourself. Don’t make the mistake of undertaking all tasks yourself, learn to delegate and tap the talents and abilities of your staff. This way you will manage to focus on the more important 20 percent of the business.
#9 Building opportunities
Every successful deal should lead to more opportunities. You must leverage the success of completing a project to get more capital for your next deal. Don’t only look for the best deal, but also see what all you can leverage from it in terms of gaining experience to do even better next time.