There are a lot of people out there who look at real estate investors and feel a little jealous. It’s no surprise – the sums involved in buying and selling homes can be enormous. But the truth is that just because real estate investors play with big-figure money, it doesn’t mean it is some exclusive club.
If you have some financial backing, and the dedication and determination to succeed, there is nothing stopping anybody from buying property and selling it on for a profit. However, there are some common habits that all investors share, which you will need to work on. We’re going to reveal all today – perhaps you could develop these habits, and who knows where you could end up?
The first trait that is shared with all successful investors is that they are fantastic planners. Real estate investors have long-term and short-term goals in their minds at all times, and excellent planning helps them see the big picture. If you can use your plan to focus on your goals, it’s half the battle won. Given the vast complexities involved in buying and selling real estate, without a plan, you will sink long before you can swim.
Knowledge of the local market
While investors might appear to have an excellent eye for a good deal, there is no luck or instinct behind it. It’s knowledge, pure and simple. Successful real estate investors will develop their understanding of the local market to an infinitesimal degree. Yes, they will seek out cheap or wholesale houses and buy them, but only if they know the area is earmarked for redevelopment. Then, a couple of years down the line, the area has been completely revamped, and they enjoy a tidy profit when it comes to selling up.
Let’s be clear – of course there are some hard-nosed, dishonest real estate investors out there. But the vast majority will get found out in the long-term. The truth is that the real estate investment community is pretty small, and word gets around if you are ripping people off or are a little loose with your ethics. If you want to develop a decent, solid reputation, earn it by being honest and always acting with integrity. Don’t forget, when you deal with real estate, you also deal with people. And the consequences of your actions can have far-reaching effects on the lives of other people.
Real estate investors have to be able to communicate with people. You will need persuasive skills, without coming across as slimy, pushy, or untrustworthy. As a real estate investor, you will be working with business partners, associates, tenants, clients, lawyers, builders – the list is almost endless. And each sector will have different ways of talking and communicating – so you’ll need to know how to relate to them.
Investing in anything is a risk, of course – there are no guarantees. However, if you want success in real estate, you have to be risk averse, as much as you possibly can. Most of the time, turning down the offer that sounds too good to be true will do you better than harm: not just in financial terms, but in legal parlance, too.