Real Estate Investment: Practice These Ten Principles and You WILL succeed
#1. Make Offers.
It may seem obvious but many don’t get it that, no matter what, you’ve got to make offers, offers and more offers in real estate investing. Set goals for a certain number of offers per day or week and JUST DO IT. The bottom line is that nothing will ever happen for you in your real estate investment business unless you take action and put forth offers.
#2. Understand the Difference Between Investing and Speculating.
Appreciation is always great, but if you buy a $200,000 house for $200,000 in hopes that it will appreciate in value, you are just speculating; you cannot count on, or control, the conditions of the market. Make wise decisions when you make your purchases; act fast, use your contingencies where needed, handle your due diligence and invest in properties that you will make money on, even if you have rehab expenses.
#3. Build a Great Network and Nurture it.
You need a good network of suppliers, and associates, to be a success in real estate investment. Make sure you get to know title people, Realtors, mortgage brokers, appraisers and anyone else with whom you can form a mutually beneficial relationship for your career. Every successful real estate investor has a wide network of associates with whom they exchange ideas, learn from, and do business with. Surround yourself with successful people and give as much as you get.
#4. Use Leverage.
When you partner for success you have access to other people’s everything. If you lack credit or funding, partner with someone who has it; the same goes for knowledge, experience, connections and time. Stay away from the scarcity mindset that tells you that your earnings will be less if you take on a partner in a deal; the opposite is true because with more resources, you have the ability to do more deals.
#5. Set Your Intention and Act.
You must have a plan and you must follow the plan in order to be a success. Write down your goals, set milestones and be accountable to a coach, mentor or partner. Measure your progress regularly and set smaller goals where needed to achieve the bigger ones.
#6. Remember That Your Business is a Business Not a Hobby; Treat it as Such.
Real estate investment is hard work that reaps great rewards. Even if you’re just working at your real estate investment business part time, set regular hours, then suit up and show them for them. Pay attention to accounting, stay organized and don’t forget about customer service before, during and after the deal. Finally, don’t make marketing an afterthought as so many small business owners do; marketing is imperative to any successful business, regardless of its nature.
#7. Hire Professionals, Let Go and Let Them Do Their Job, and Listen to Their Advice.
Accounting, financing, legal, marketing and more; there are people out there who know what you don’t know and you will need their help. Find the best that you can afford and listen to them; keep in mind that the business of real estate investment is vast and one person cannot know all there is to know or be 100% on top of the changes that are constantly occurring in the industry.
#8. Diversify Your Projects.
There are many ways to add value to your real estate investment and you shouldn’t limit your thinking to one type of investment strategy. Get creative and always be looking for different ways to add value to a deal so that you might increase your profits.
#9. Don’t Think Like an Investor 100% of the Time.
Switch hats on every investment you make and get into the mindset of buyer or tenant with every deal. Look for ways to make the deal more attractive.
#10. Remember That Education is the Best Investment You’ll Make.
Never stop learning. Go to seminars and conventions, get a coach or mentor, read books, attend webinars and listen to podcasts. Every minute and every penny will come back to you tenfold when you spend it on continuing your education.