The smartest thing anyone new to a field can ever do is find someone already doing well and do what they do. If you want to be a successful real estate investor, incorporating these seven habits of successful real estate investors into your way of thinking is a really good way to start.
1) Make a plan and stick to it—except when…
One of the first things you’ll learn about truly successful investors is they have a habit of making a plan and sticking to it—except when it isn’t working. They will then adjust the elements of the plan as needed so it goes forward. However, the trick here is to have the discipline to work the plan. Many people have penned outstanding strategies, but never followed through on them. So, rule number one is make a plan and do everything possible to see it to fruition.
2) Network, network, network
Investing in real estate would be so much easier if there were a formal curriculum offered at every college or university. Because there isn’t, the most successful investors routinely spend time trading ideas with other investors. They also take it upon themselves to read about the field constantly so they have something to share too. If you’re fortunate, you’ll find a good mentor with lots of experience, but that doesn’t mean you should pepper them with simple questions for which you can easily find the answers by reading up on what you’ve chosen to do.
3) Engage in consistent communication
Even if you have a professional property management team at your disposal, you’ll still need to make sure it hears from you on a regular basis. That way, they can keep you apprised of the things you need to know to make the high-level decisions. Plus, you can keep them informed of changes in your goals or plans as they arise. Consistent communication is key to the success of any business undertaking.
4) Keep records up to date
A solid awareness of the financial state of your investment portfolio is critical to good decision-making at every level. Maintaining up-to-date records is a fundamental aspect of this. It also makes it easier to pull your financials together at a moment’s notice when you run across a strong opportunity and need to get financing in place as quickly as possible. To really impress a banker, email them a professional loan package during your initial phone conversation.
5) Make money when you buy
Every smart retailer knows profit is made when you buy rather than when you sell. The better the price you get going into a deal, the more you stand to make on your way out. This is fundamental to running any successful business. In real estate investing, the better the price you get when you buy, the more cash flow you stand to see. This frees you from having to wait for equity to build, or for the economy to grow to see your property return a profit.
7) Ignore emotional attachments
Underperforming investments are routinely excised in favor of those capable of producing better returns. So what if it was the first piece of property you ever bought, as well as the house in which you and your spouse started out? When the numbers say another property is a better investment, but something has to go for you to make it, the most successful investors will let it go and take on the better-performing situation. Of all of the seven habits of successful real estate investors, one of the most important is maintaining a laser-like focus on what is best for the business as a whole.