3 Qualities that Every Successful Real Estate Investor Possesses
Realizing success requires more than simply expressing a desire to be successful. Regardless of your field of endeavor, you have to be ready to put in the work. Real estate investing, like most professions, comes with a bit of a learning curve. However, there’s no need to stumble through when so many people have found success before you and blazed a well-marked trail. If you’re just getting started, here are three qualities that every successful real estate investor possesses.
Successful real estate investors take action based upon the numbers in front of them. It’s easy to get sentimental about a property you own, especially if it’s one of your first. But successful investors are able to avoid this trap and make decisions that are best for their bank account. As Kenny Rogers’ popular rendition of old country song goes; “Ya gotta know when to hold ‘em — and know when to fold ‘em.”
This means you have to get good at saying no. When the numbers don’t add up, the answer is no. You’re also going to run into situations in which people are counting on your feelings to get you to make a decision based upon sentiment. When the nature of that decision will be detrimental to your goals, you have to be able to put your feelings aside and say no.
Attention to Detail
The variables associated with running a profitable property are many, so paying attention to detail is critical. From the initial home inspection, to screening tenant applications, to complying with local ordinances, owners must be thorough and attentive when dealing with their properties.
Giving the proper attention to detail will also help you appreciate quality over quantity. Bear in mind, in most cases when you say yes to an investment, you’ll have to say no to others. This is known as opportunity cost. Examining the details, you’ll recognize when one quality deal will be more advantageous than a bunch of average ones. Paying attention to detail ensures your investments will be the best they can be, rendering opportunity costs minimal.
Perhaps the most important trait of a successful real estate investor is being proactive. In real estate, even the smallest of issues, whether they are maintenance or finance related, have the potential to snowball into massively costlier ones down the road. A good landlord is always scouting for potential issues and handling them as soon as possible.
Similarly, the most profitable investors are always on the lookout for new opportunities. Every person you meet represents a possibility; ditto every “For Sale” sign you see. In this business, deals don’t always come looking for you. One must be proactive about going out and looking for them too. While we’re not saying you have to be “on” and wheeling and dealing every waking moment, the fact of the matter is, the more you think about your business and the more you look for opportunities, the more business you will find.
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