For investors just starting out, everything can be more than a little overwhelming. Your financial future is something to be excited about, but there’s never a shortage of apprehension. There will be days when you ask yourself what you’ve gotten yourself into! It’s a little daunting to look at the success of other real estate investors, which can be both inspiring and intimidating.
In the beginning, your goals will either seem out of reach, or you’ll be expecting to reach them overnight. Neither is true: but with the right mindset, persistence, and dedication, you’ll get closer and closer to achieving the goals you’re after.
Want to know a good place to start? Here it is.
7 Things Successful Real Estate Investors Do
They Take Consistent Steps
When you’re feeling jazzed about investing in real estate, it’s easy to plan and promise. You’ll go to that networking event. You’ll buy that property. You’ll do this, do that. Being excited is great! But excitement also doesn’t last. You’ll have hard days that are disappointing and frustrating and you won’t want to do the work you need to do. Successful real estate investors don’t hinge progress on their emotions. They take consistent steps to do. They’re always moving forward in one way or another.
They Know Their Numbers
One of the best things an investor can do for themselves is to know their numbers. That means knowing the costs of your investment property, from taxes and repairs to renovations and insurance. It means knowing where every cent you spend goes, and how it balances out with your monthly income from rent. It means having an emergency fund set aside for unforeseen circumstances. It means double-checking and triple-checking the numbers for a deal. It means being realistic. Successful investors know their numbers and anticipate the unexpected.
They Keep Up With Their Portfolio Monthly
Sometimes, it is not just about the numbers themselves but how often we keep up with those numbers and the returns we are making as investors. Nothing can make an investor look more foolish than when they claim a high or a low return off the top-of-their-head without knowing their numbers. When challenged to really calculate the return, nothing is worse than saying one thing with words, while reality tells us something completely different.
They Never Stop Learning
No matter how much you know, there’s always more to learn. Successful investors don’t rest on their laurels. They read good real estate investment books, listen to a top-notch podcast like BiggerPockets.com weekly podcast, get involved in forums and keep up with blogs. These real estate investors don’t neglect to learn more. Continuing your real estate investment education is infinitely valuable. Find what works for you, and do it.
They Go for Quality First
What’s more important for your long-term success? Saving a few dollars on the front-end or paying more to have it done right? It’s true what they say: you get what you pay for. Don’t be dazzled by too-good-to-be-true deals and promises. Successful investors know that paying a premium is necessary for premium services. That means hiring reputable Turnkey companies with strong property management teams. Working with good contractors and maintenance teams. It means not being suckered into thinking cheap will be a miracle money-maker.
Your investments are just that—investments. By nature, you have to put in something to get something back. Successful investors know that springing for quality is almost always better than seeking out bargain bin prices.
It may cost more to purchase quality on the front-end, but the savings over the life of your property when you choose the best teams in the business cannot always be calculated.
They Value Marketing & Networking
Successful investors don’t expect the deals to come to them. They seek them out by steadily building up their list of contacts through marketing and networking. They do their homework and seek out only the most reputable of partners. These real estate investors don’t neglect their professional relationships. They’re willing to put some money behind quality business cards and advertising campaigns. They keep their feelers out. You’ll quickly find that successful real estate investors don’t operate in isolation—they have networks, teams, and trusted contacts aplenty, all diligently built up over time.
They’re Not Looking to Get Rich Quick
Overnight success just doesn’t happen in real estate investment, even for fix n’ flippers. Value isn’t going to explode as soon as you buy. Costs might be more than you anticipated one month. Successful real estate investors aren’t looking for a get rich quick scheme—they know time, effort, and dedication is required to find success. They don’t listen to so-called gurus making empty promises. They know there’s no magic formula. Successful real estate investors are realistic about what it takes.
They Pay Attention to Trends
Finally, successful real estate investors pay attention. They read the news. They invest in learning about the areas they want to invest in. They look for good neighborhoods and up-and-coming areas. They notice signs of decline and understand that location is vital. It’s not about finding the cheapest property, it’s about finding a property that will continue to be viable—attracting good tenants that stay and for selling in the future.
What do you think is key to success in real estate investment? Share your other best practices in the comments.