Real estate investing is not as passive as people are led to believe; in fact, there are many stages to becoming a successful real estate investor. Too many people begin their real estate investing careers with great intentions but far too little expertise. More often than not, they may stick at it for a while and eventually give up, or they keep at it but never really achieve success.
Being a landlord is best suited for certain types of people, and it’s essential to always invest in things that you understand. You’ll find there are few common traits that most successful real estate investors possess. Here are some characteristics that, if you adopt, will help you achieve your real estate investing goals:
Wanting to own tangible investments
Investing in real estate is much more tangible than investing in the stock market. It can involve getting your hands dirty, something that doesn’t exist in the stock market world. This is a big motivator for people who prefer a more tangible investment.
You can see exactly when and what you get paid every month as a landlord. It’s much more pleasing to the eye than money that sits in an investment account that can’t be touched for another 25 years.
Good with customer service and research
Being a landlord is sometimes more similar to working in customer service than actual investment. Having to deal with tenants and clients 24/7 is typical for landlords; it’s actually a people management role that you’re fulfilling.
Organisation and research are key, plus it’s a requirement that you possess an educated understanding of the legalities involved. Knowing your local tenant protection laws is a necessity as a landlord.
Success and failure as a real estate investor depend on the quality of the research and forward planning that is carried out. If you don’t have the correct processes in place, things can be frustrating for landlords and tenants alike.
Understanding quality over quantity
There are no medals for the number of deals you close. Those who are successful investors understand the importance of closing quality deals over a truck full of average ones.
What will you lose to acquire a new property? This is what you must ask yourself with every new real estate investment deal you consider. If you are patient and look for the best deals, you will, in turn, run a better business. Looking for quality over quantity will utilize your time and money better.
Passion
You can’t be surprised that the most successful real estate investors are predominantly the hardest workers. People often underestimate the amount of work it takes to achieve success when investing in real estate. You need to put in the work to give yourself the highest chance of success.
Real estate is definitely not a career where you can afford to waste time waiting for deals to come and find you. You must take every opportunity you get to further your goals; each property you view is a potential opportunity, attend networking events and keep your eyes peeled for run-down properties or properties for sale by the owner.
Knowing your limitations
A successful real estate investor knows their limitations. Especially when you are new to investing, it is essential to be familiar with your skillset and spend your time and energy on what you do best.
It may be challenging to let go and trust others, but it’s an integral part of success. By trying to do everything yourself, you may find you’re soon on thin ice. Successful real estate investors carefully consider where their time is best spent.
It’s absolutely critical to understand the ins and out to be a successful real estate investor. Take a minute to evaluate how many of these traits you possess and figure out where you’re lacking. Whether you’re new to investing in real estate or are well seasoned in it, there is always room for improvement.