Becoming a successful real estate investor may take more time and effort for some people. This is mostly due to the fact that there are certain habits that real estate investors should have that takes some people longer to develop than others. These Investor habits are the key to success in this industry.
Many people have tried to become successful in this business, but they lack the conviction or the knowledge altogether. Habits can be easily changed/learned, the problem is some people are too stubborn to do so. Many people ignore the habits that are causing them to lose money as investors because they are too hard headed.
Nevertheless, even if you manage to get the hang of these habits it will still take time, hard work and dedication in order to reach success as an investor.
4 Habits That Define Successful Real Estate Investors
Keep your eyes peeled for great deals
As a real estate investor, you should always be on the lookout for potential bargains. As mentioned in a previous post on One Cent at a Time you must choose your investment property carefully. The best deal of your life could be right around the corner and you may miss it if you don’t keep your eyes peeled.
One of the best deals I got was from a fellow investor who didn’t have the money to buy a property with some great potential. He had just finished up a deal where he bought a home for a little over $200K and he didn’t have enough to buy another property at the time. Luckily, he gave me a call and told be about the opportunity. It was a small home in a very good neighborhood in downtown Orlando.
The seller was only asking for $100K because he was planning to move to Europe and he needed the cash ASAP. The home didn’t even need much fixing at all, all I did was apply a fresh coat of paint to the interior and voilà. I made a little over double what I bought the home for in less than 2 months.
Networking and socializing with fellow investors is a great habit to get into. Often times your colleagues may pass up on a bargain because they do not have enough cash on hand or other problems and they may pass it on to you. Another great strategy to employ is to check the MLS and Craigslist on a daily basis. There are a lot of bargains that appear on these platforms that you may be interested in. Getting in touch with people who list on those sites is a great way to expand your network.
Always look at the numbers
Yes, I know! Some deals seem too good to be true. This is why you should always look at the numbers and make sure you are making a smart investment. Make sure you crunch all the numbers so you are 100% sure you will be getting a decent return on your investment.
I’ve made more than a few deals on the spot, and I’ve only made a profit from one of these deals. Often times I ignored important aspects of the deal like location, current market strength and damages the home may have that can’t be seen at first glance.
One of the biggest loss I had, was a home which had a terrible mold problem. The home looked great at first glance, the paint looked great, the structure seemed sound and the owners appeared to be trustworthy, which is something that One Cent at a Time mentions as an important factor. The boy was I wrong.
After I purchased the home I brought in some workers to do some maintenance work, that same day I got a call from them. They told me the home had a serious mold problem and the previous owners had painted over it. The problem was so bad, the foundation had suffered water damage as well.
It cost me a little over $20K JUST to get the mold problem sorted out. By the time I sold the home I had already lost upwards of $30K. This is one of the reasons you should always look at the numbers, this doesn’t just mean on paper but also doing a proper physical inspection to ensure you will make a profit.
Get with the times
It is no secret that technology has helped us immensely in our day-to-day activities. The situation is no different when it comes to real estate investments. If you are managing properties then you will probably want to get some good software to help you keep up with your properties.
A top quality property management software will help you become as efficient as possible while you save money at the same time. You can keep up with tenants, maintenance and much more by using one of these online tools.
Smart home technology today goes far passed an automatic garage door opener. Nowadays, you can control many elements of a home right from your smart home from lights and appliances to security and air conditioning adding smart technology to your investment property can raise the value.
Keeping up to date with smart home technology can make your money. If you’re not a tech person contact a local computer repair shop and have a conversation with the owner to make sure you’re up with the times.
Goals are important in almost any business venture. Setting goals is only half of the work, though, you must change them as you evolve and succeed. Most of us make the mistake of setting a goal which is too high or difficult to reach from the start. This is when you should reevaluate your goal and cut it down into smaller goals. This will help you project yourself more realistically while still working towards a larger objective.
This list on habits to define a successful real estate investor can go on and on, the fact of the matter is that as you proceed in your journey you’ll have your own list of habits. These were just 4 good habits you should start implementing in your day-to-day as a real estate investor. If you have any good tips on habits for success please share them with us. Thank you for reading and good luck!
About the author: Hey, I’m Aaron and I’ve been investing in real estate for a little over 9 years now. I’m kind of new at blogging so visit my blog investing in real estate tip, if you want to check out more of my tips or if you want to give me post suggestions.