Real estate investing is lucrative and rewarding but also challenging as it is a highly competitive field. This is why only top investors with a solid plan find their way through the thicket to become successful at it.
Successful real estate investors do not become effective in their crafts because they have an academic degree but by learning the nitty-gritty of the industry, visualizing the big picture, meticulously establishing their goals both in the short and long term, and approaching their activities with utmost professionalism.
They are able to maintain main focus on their goals and persevere despite the myriad of challenges they encounter. They build never-give-up character, networking and collaborating through joint ventures, wholesaling and property management when necessary.
Let us delve further into the most common habits built by top successful real estate investors. Below are 10 of those habits.
Successful Real Estate Investors are Great Planners.
Successful real estate investors are organized planners, astute go-getters and smart business professionals. They do not set out on a business engagement or an investment opportunity without crafting a solidly feasible business plan that aligns with their goals and helps them keep focus.
The plan makes them organized as it often includes estimated outlays and inflows of cash from rentals, the number of units to own, demographic changes, how and when to upgrade units, and all other factors that could affect their investment gradually.
They have In-depth Knowledge of their Markets.
Successful real estate investors take their time to acquire the comprehensive prerequisite knowledge of the markets where they intend to operate. They usually focus on residential and commercial properties in their choice local market.
They are always on top of their game, learning, relearning and strategizing for the future by keeping themselves familiar with current industry and market trends, including mortgage rates, changes in consumer spending habits, unemployment rate and other important market indicators or parametres. They are never cut unawares being prepared and fully armed with essential pieces of information that help them to predict changes in trends and identify potential opportunities.
They Operate with High Ethical Standards.
Most successful real estate investors operate with and maintain high ethical standards as required by the laws and principles guiding real estate transactions in their markets.
Other real estate investors try to find loopholes they can advantage of in such laws and principles in order to perpetrate shady deeds. Successful real estate investors try be to be fair instead of looking for what they can get away with. They have good reputation cautiously built over several years of working, relating and liaising with different professionals and other people in the field.
They Find and Develop a Niche.
Finding one’s particular niche is critical to achieving long-term success in real estate investing. Many new investors make a lot of mistakes by going after shiny objects instead of committing themselves to a niche. Successful investors understand this fact, hence, they ensure their business is laser-focused, narrowing their investment to a specific method, geographical niche as well as property and building type.
Successful investors understand their products and strive to develop their area of specialization, thereby knocking out their competitions, securing deal faster, and taking their career to the next level.
They have Good People Relationship.
Real estate investing involves working with people and getting the right connection for business which mostly comes through referrals. This is why some real estate investors become successful by treating others with respect – business partners, associates, clients, renters and everyone they have a business relationship with.
Successful real estate investors pay rapt attention to details, are proactive listeners and responders to complaints and concerns. This helps present their business in positive light and professional manner; it also enables them to build a strong reputation that makes others develop keen interest in working with them.
They Stay Educated.
Successful real estate investors are great learners; they learn, unlearn and relearn in order to stay up to date with the laws, regulations, principles, trends and terminology which are important to their business.
They understand that lagging behind in this area can make them lose momentum and face dire legal consequences if any law is broken. They stay educated and up-to-date on real estate, tax, lending laws and regulations that have direct or indirect impact on their business as well as get acquainted with any regulatory or economic changes.
They Understand the Risks.
Real estate investors are not often warned about inherent risks in investing and potential for loss like stock market investors as the real estate industry is riddled with positive news and invitations of how to make money without reference to the risks involved. Nevertheless, successful real estate investors are very prudent in that they understand the risks. They know that every business opportunity that presents itself also has downsides, and adjust their businesses to reduce the risks involved.
Successful real estate investors also understand the implications involved in real estate transactions, so they ply their trade within the ambit of the law.
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They Invest in Accountants.
Real estate property taxes are payable on all properties situated in designated areas in a market, and they cannot be avoided. Some of the taxes payable in the real estate sector in Nigeria, for instance, include consent fees on the land transaction, land use charge, withholding charge, Personal Income charge, Value Added Tax, Ground rates, Development levies, Property levy, community tax and Television Antenna charge.
Successful real estate investors are intelligent and understand that real estate tax laws can be complicated, so they work with highly qualified and reputable accountants who help to handle the business books. Working with professionals save time and money in the long run compared to the costs involved in hiring them.
They Find Help.
Successful real estate investors reach the pinnacle of their businesses because they collaborate effectively, acknowledge and embrace other people’s expertise. They understand that attempting to learn the real estate investing business alone can be challenging. This is why they do not go alone.
They attribute part of their success to others such as lawyers and mentors. Time is precious to them, so instead of risking it to tackle difficult problems alone, they would rather incur additional costs to get experts.
They Build a Network.
Successful real estate investors understand that real estate investing thrives on experiential learning, so they build a network that can help and guide them.
They leverage professional network, which gives them important support and creates opportunities, to attain success in their endeavours. They carefully choose their network which can comprise of mentors, clients, business associates and others. They use the network to challenge themselves and provide support to others.
There is no denying the fact that real estate investing is a bridge to wealth creation, but it is not as smooth as it is often painted. It is challenging and requires, in-depth knowledge, skill, planning and focus.
Real estate investing is mainly about people – connection building and networking with other professionals in the sector, associates and clients. It is thus important for any investor, who wants to be successful at it, to have the attributes discussed above and develop human relation skills.
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We help you succeed in your real estate investment by giving you unbeatable access to the best possible pricing and incentives. We also ensure you avoid the common pitfalls that investors make by helping you identify the right properties that are most likely to provide positive cash flow as they appreciate in value. We communicate with you every step of the way and keep our words. Contact us today for professional advice on real estate properties and purchase of any of our projects.