In order to be a highly effective real estate investor you have to form good habits. There are key differences in the habits of a successful real estate investor versus someone who is not successful. These differences by in large have to do with the investors habits. Investors who are successful have a different mind set and process then those who have tried and failed at investing in real estate. Anyone can form a habit or change current habits, habits can be good or beneficial or they can be bad and be detrimental to achieving your goals. Creating good habits will help you become more successful in real estate investing. It’s not to say that there won’t be struggles and that everything will be smooth sailing but with a concerted effort everyday these habits will create opportunities in your life as a successful real estate investor.
Always Be On The Hunt For A Great Deal
It’s important to always keep your eyes open for investment opportunities on a daily basis.The deal of a decade could be waiting around the corner and so you have to be on the look out. Networking with other real estate investors is a great way to get word on some some pretty incredible investment opportunities. I’m not suggesting you steal deals out from under your colleagues but there are deals that they may pass up for one reason or another that are still a great investment opportunity that merit a closer look for your own real estate portfolio. It’s also important to check Craigslist and the MLS daily, it doesn’t take long and it keeps you apprised of the market conditions as well as the potential for a good deal.
Embrace Your Numbers Ninja
Always run the numbers on every real estate deal even if it seems like a slam dunk, no brainer. It’s important to gather all of the data so that you can really get a clear picture of the income and expense of a particular property. It’s important to no ever get overly confident and think you can skip this vital step. No matter how many deals you’ve closed and how successful you are, a deal can turn bad quickly if you don’t gather all of the information needed.
Adjust Your Goals As You Go
In order to be a successful real estate investor you have to set some goals but it doesn’t end there, you have to review your goals and change them, or build upon them as you go. If one of your goals is to expand your real estate business it’s important to review your progress as you go and adjust as needed. Sometimes a goal may be too big or vague and taking the time to narrow it down into “bite size” pieces can help you feel accomplished as you achieve those pieces of a larger goal.
Surround Yourself With Smart People
Successful people are life long learners and surround themselves with smart people. You will never know all there is to know about real estate because it changes and it’s important to get others input and thoughts to expand on your own ideas and experiences. Networking with people who are well connected in the real estate world can open a lot of doors to some great opportunities to grow your business. When it comes to real estate investing there isn’t one right way to go about it and it’s interesting to learn others strategies and learn from their experiences. Having a team made up of a realtors, lenders, attorneys, and accountants that are excellent in there field of expertise is invaluable and could be the difference in failing or succeeding.
Know Your Market Niche
Whether you invest in single family homes, multi-unit complexes, commercial properties, or land it is important to know your particular market inside and out. Knowing the neighborhoods where you purchase properties is so important. Being aware of city planning or other things that will impact the future value of properties in the area can play a big role in your success. This goes back to networking and knowing the right people to get some of this information.
Be A Problem Solver
Finding solutions to problems is part of life, real estate investing is no exception. Things rarely go exactly as you may have envisioned, hiccups occur, deals fall through, people flake out, it’s a part of life. How you respond to these situations is going to be the difference in quickly getting through the tough times, learning from the events and ultimately coming out ahead. Attitude is everything in life and isn’t it great to know that we possess the power within ourselves to choose how we react (our attitude) to situations. Successful investors take the high road and stay positive and motivated even through a situation that is not ideal and with some set backs.
What other habits are crucial to being a successful real estate investor, I’m sure I missed a few?
Very insightful information here! I would second that “embrace your numbers ninja” tip – no matter how good a feeling you’re getting, you NEED to run the numbers just to be sure. Sometimes things that look good in your head don’t translate well when put onto paper. Thanks for sharing!
Jordan, I’m glad you found value in the information. I agree, crunching the numbers is on of the very most important components of making successful deals.