10 Ways to Set Yourself Up for Success in Real Estate
Are you looking for ways to succeed in the area of real estate investment? Well, there are some things you should know before getting started. Despite what some people may think, real estate investing isn’t necessarily a hands-off approach to investing. Although it can be depending on which type of venture you decide to pursue. For the sake of this article, let’s focus on the opportunities that involve the actual purchase and eventual resale of a property. These generally involve some level of work on a day-to-day basis. With that said, here are some of our best practices to set yourself up for success in real estate.
Everything worthwhile takes time. Like all investments, you should never expect to get rich quick. Hard work and perseverance are the necessary ingredients in order to reap the rewards of your efforts. The classic phrase suggesting that everything worthwhile takes time rings true. Sure, there are strategies to help you speed up your income growth – we aren’t doubting that. However, you should never expect to reach the status of the rich and famous overnight. Generally, those that do have either gotten lucky, taken on a huge amount of risk or spent years working hard in the background.
Do your research and always be informed. Part of what takes time is accumulating the necessary knowledge and staying on top of market trends. It can be very frustrating dealing with a professional that is uninformed and is unable to answer certain questions. To avoid this, you will want to stay on top of market trends and know the local area – particularly where your investment properties are located. This will be extremely helpful when it comes to dealing with clients. Beyond the customer service side of the business, it will also help you identify worthwhile opportunities versus those that are fruitless.
Assess the involved risk before signing anything. This should go without saying but it is still worth mentioning as a friendly reminder. An adequate assessment of risk typically follows an intensive research process. This goes back to a basic discussion about the risk and return tradeoff. If a project seems to yield exceptionally high returns, then you should carefully consider the amount of risk involved. Even for opportunities presenting reasonable returns, you should make sure the level of risk aligns with it. Always take time to assess the level of risk associated with the likelihood of your project materializing as it should.
Transparency and honesty will never lead you astray. Real estate is a reputation game and a trusted name for yourself can lead to priceless referrals. Why jeopardize any long-term opportunities by tarnishing your reputation due to shady business tactics? Typically, you can trust your gut instinct and personal values when it comes to being forthright with your clients. In cases where you are still unsure, it never hurts to consult with an outside perspective.
Use technology to its fullest advantage. No matter what your relationship is with technology, it’s time to take full advantage of it. Time is valuable and technology can help you spendit much more efficiently. Not to mention that if you aren’t already using social media or other resources, your competitors are. It’s in your best interest to stay in the loop.
Develop a network of people you can reach out to. Having access to the support you need is critical to the success of any business – especially real estate. So why start from scratch when you can establish a network of professionals that you can turn to? You should seek to include networks of potential buyers and sellers, as well as other professionals (i.e., legal, title companies, construction, etc.). An effective approach is to seek individuals you can form a mutually beneficial relationship with.
Never be afraid to ask for expert advice. It takes time to learn all aspects of the real estate industry in great detail. And even then, you will probably still have so much to learn. Don’t hesitate to leverage the knowledge of those around you. You can turn to professionals in times of need and uncertainty. If you follow the previous suggestion and build a network, there will always be someone you can turn to for professional advice.
Hone in on your style and perfect your skill. With so many options surrounding different types of real estate investing, it’s like any other skill. That is, we recommend finding your niche and focusing on that particular type of project. Rather than trying to learn the ins and outs of a variety of investing styles, focus on one in particular before you move on. Not to say that you can’t experiment with other types of investments, but we recommend that you master one before diving into another.
Have a plan and nothing less. Again, this one goes without saying. Our main piece of advice is to make sure that your plan isn’t just to wing it. A wise man by the name of Benjamin Franklin once said, “Failing to plan is planning to fail.”
Don’t be afraid to ask for referrals. After all of the footwork you’ve done to land a client, why not take full advantage of the time you’ve invested? Whether you’re buying or selling, it never hurts to try and tap into your clients’ networks by asking for a referral. This can save you some time in the future and ultimately help to streamline the process of landing another client. Also keep in mind that referred leads have generally already heard good things about you.
And with that, we sum up our list of the 10 ways you can better set yourself up for real estate success. But wait, there’s more. You can take the next step and further enhance your odds of winning in today’s market. Our Rich Dad Education trainers will introduce you to proven strategies that can help you launch your career as a successful real estate investor and develop a "Rich Dad Mindset."
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