Success isn’t something that comes to us overnight. It takes hard work, dedication, and, no matter how passive our income is: commitment. As real estate investors, we have to invest not just our money into this thing, but our time, attention, and willpower. If you want to succeed in real estate investment, it starts with a solid foundation and by forming good habits.
If you have that base level of knowledge and you develop the follow through with what you know? It’s hard to go wrong.
So, in the interest of success, we’re bringing you seven habits that are essential for staying at the top of your game in real estate investment.
7 Essential Habits for Every Real Estate Investor
Learn Something New
Continuing your education is a crucial piece of the puzzle. None of us have ever truly mastered the art. We can always be better business men and women. We can be better at managing our finances, better at managing risk, better at finding deals and negotiating, better at dazzling private money lenders, and better at scaling and growing our investments. There are new strategies to explore, new markets to discover, and new technologies to try.
There is never nothing to learn. So make it a habit to seek out new knowledge. You won’t regret learning something new!
Even the most passive investors have a need to take the reins. That means valuing communication and initiating dialog between yourself and your partners in this business—your managers, your turnkey providers, your partners, whoever it might be. Just touch base! Make it a habit to communicate regularly.
Look for Opportunities
One of the only ways to grow as a real estate investor is to seek out opportunity. If you’re not looking for new ways to grow your portfolio, new ways to increase your profit margins with the properties that you already have, and looking to innovate and apply your knowledge and improve your strategies...you’re missing out.
Make Networking Moves
Investing in real estate shares qualities with many other careers in that networking is crucial to your advancement. If you want to excel, you have to know people! Make an effort to reach out to people in this same sphere—real estate professionals, other investors, CPAs, lawyers, and other experts that can help you step up your game. It’s always good to have someone in your corner.
And sometimes it’s just good to have people you can talk to: people you can bounce ideas off of, compare notes with, and ask for advice. Make a point to make friends. You won’t regret it.
Do Performance Reviews
Healthy self-examination never goes amiss. Make a habit of stepping back and doing regular self-assessments. Look at your goals and track your progress. Are you where you need to be? Are you satisfied with your progress? Where do you think your weaknesses lie? If you’re honest with yourself, you can identify these areas of improvement and begin to target them through daily work—whether it’s improving on your negotiating skills, paying closer attention to your budgeting and numbers, or simply being better organized.
Step back and evaluate yourself and your investments from an objective standpoint—it will help you center yourself.
Keep the Numbers in Check
Real estate investment is a numbers game. Keeping your numbers in check isn’t just about due diligence in buying a property and running the numbers—though that’s a big part of it. It means that you, as an owner, are active in managing and directing your financial future. While you can earn passive income, you can’t just let it sit.
If you want to succeed, you need to know your money and know it well. Tax laws are always changing. You need to be up on them so you a) don’t make mistakes and b) can get the most out of your returns and exemptions. Plan carefully. Be passive with income; not with your money.
Remind Yourself of the Big Picture
Lastly, successful real estate investors keep their eyes on the prize. Even passive investors can fall into the monotony of routine and let their focus slip off of their goals. They get distracted by life and obligations and forget what they’re really trying to do with their investments. Successful investors don’t forget. They take the opportunity to remind themselves of what matters; what they’re doing this for, and what it will take.
When you can keep the big picture in focus, it allows the path to your goals to remain clear. That way, you can have more purpose, more drive, and better follow-through in your path to success in real estate investment.
Want more insightful content for real estate investors? Check out the Experience Matters podcast with Kent Clothier.