Real estate investing is always mentioned as one of the best ways to invest your money. A sound investment, real estate isn’t privy to the changes in interest rates, stock market fluctuations, or economic inflation. However, it isn’t always an easy route, either.
In fact, for many, real estate investing isn’t a good choice for them. The business can be ever-changing, complicated, and hard to navigate for those without certain characteristics. It takes serious dedication and a lot of hard work to make real estate a successful investment option.
The fact of the matter is that, when it comes to real estate investing, it just isn’t everyone’s cup of tea.
But, what are the traits required to forge a successful path in the real estate investment industry? A quick look at some of the most efficacious real estate investors across all the levels on the field will bring to light several personality traits that are required to be successful in real estate investing.
Let’s take a look…
They are Passionate
Real estate is not a get rich quick scheme, despite what several television shows may have you believe. It requires time, patience, and a lot of research. One of the most important qualities a successful real estate investor must have is passion for the business. A real estate investor must be passionate about what he/she is doing or they will find it an arduous task—which means they are less likely to put their all into it.
Most investors start while maintaining a full-time job. This means that any work put into building the investment business has to be done after hours, on weekends, and during personal or family time. Having a passion for the outcome of the venture is the only way to really ensure you stay on the right path and keep trudging along.
They Plan Things
Investing is a strategic process, especially when it comes to real estate. When it comes to successful real estate investors, they always have a plan in place long before they begin to act. It is important to set short and long-term goals so that you can map out a plan of action to accomplish these. If you don’t know the overall goal, how will you know what investment options will get you where you want to be?
Having a solid plan in place will also help you to avoid any frivolities or prevent you from getting sidetracked into other investment opportunities, which can delay the fulfillment of your overall goal.
They are Good at Developing Skills
Real estate investing takes a range of skill sets. To be successful, an investor needs to always stay focused on developing skills that will help them along the way. This includes money management, time management, customer service skills, analytic skills, researching, and so much more. The most important thing to remember when getting into real estate investing is that there is always something new to learn, some new trend or market change to understand, a new law or regulation put into place, or new methods of advertising to grasp.
A good real estate investor is never done learning, honing, or fine tuning their skills.
They Stay Current
A successful real estate investor will always stay on top of the latest changes in the market. In addition to helping them forge their growing business and fine-tune skill sets, staying current with the latest changes in the real estate market can help to protect the investor and their assets.
Those who don’t pay attention to the latest occurrences in the market put themselves at risk by potentially not following new regulations or laws. This can have disastrous legal ramifications in some cases if laws are broken, overlooked, or ignored. In the eyes of the law, “I didn’t know” isn’t an acceptable excuse.
A good investor keeps up with the changing of the market, constantly researches, and always learns new things—but a great investor educates others, as well. When helping others learn the industry, it helps point out one’s own strengths and weaknesses. This allows you to pinpoint areas that you yourself may need to work on, as well as giving you an idea of what areas you excel in. Knowing these will help direct you to know when to ask for help, which can help you keep your head above water in some situations.
Networking is one of the fundamental keys to a successful real estate investment venture. A network provides an investor with a support system, connecting them with other investors or real estate professionals. A network should include a well-experienced mentor, business partners, clients, and agents. When you have questions, having a well-planned out network can get you the answers you need. A network can also help make you aware of deals on the market, help you find tenants, or give you an easier way to sell any property you may be trying to unload.
Networks are basically a shared information system—giving investors a like-minded group of people and organizations to share knowledge and experiences with. These groups of people are great for sharing information, challenging one another, partnering on investment deals, and locating services. Most importantly, having a solid network means you are not in the business alone. If you run into a problem, you have a collective shoulder to lean on to get through it.
While television may have you believing that real estate investment is an easy to learn, get rich quick scheme, it is actually a complicated process which requires time, effort, dedication, and a drive for knowledge. However, if you persevere and focus on these important traits, you can develop a business investment that will not only benefit you in the short term, but can set you up nicely for the long term. Ask any successful real estate investor and they will happily tell you that it may not have been an easy road but it was definitely well worth it.