5 Secrets To Surviving In The Real Estate Business
By JD Esajian on September 29, 2016
In the real estate investing business it takes more than desire and hard work to be successful. Almost every investor you come across shares an equal amount of passion for the business. What you will find is that it those investors who view real estate as a business are the ones that can survive in any market. Often times it is the preparation you do before you get involved in a deal that really matters. Once your offer is accepted it is too late to go back and have a do over. Until your business hits their stride and takes off you need to do whatever you can to survive. Here are five secrets to help you survive in the real estate business.
- Set Goals. Before you look at one property or talk to one contact you need to have an idea of what you want from the business. There is a completely different philosophy if you are looking to close a deal or two a year versus making real estate your full time profession. It will impact how you find deals and the manner in which you fund them. It will influence the types of properties you look for and even the condition they are in. Simply put your goals shape everything you do in your business and impact every decision you make. Without a set of goals you will bounce around from potential deal to deal without any clear vision. You will end up looking at deals just for deals sake and not focusing on the numbers. As basic as it sounds one of the keys to survival is constantly taking a step forward. A set of goals goes a long way in ensuring that.
- Know The Business. Real estate investing is a difficult career to master. Investors who have spent years in the business are constantly looking for new ways to close deals. Imagine how difficult things are if you don’t have a base of knowledge to fall back on? When you are just starting out you don’t need to be an expert on all things real estate but you can’t be clueless either. You need to know exactly what you are getting into. You should constantly improve your education at all times. Not only is this essential in putting deals together but it also helps in building contacts. People want to have confidence in the people they are working with. Not staying on top of what is going on in the market or in the business can cause you to lose an important contact. It can also lead you to a deal that you want no part of. You don’t need to know every single area of the business but you should make it a point to improve your education every day.
- Know Yourself. Most new investors enter the business by themselves. Even the ones that have a partner do much of the heavy lifting on their own. Before you get too far it is important to take some self-inventory on your strengths and weaknesses. If you do not have the discipline to work from home you need to change your schedule so you work around people. If you are intimidated by large groups you should start your networking in small groups on a local level. Being a successful investor is about dealing with personalities, yourself included. There is nobody looking over your shoulder telling you what to do and how to do it. One of the most appealing things about real estate investing is that you can do it however you like. Prior to getting too far into the nuts and bolts of the business you need to look at how you can best operate in it. Take a good look in the mirror and respond accordingly.
- Don’t Be Afraid To Stand Out. The NFL is often described as a copycat league. When one team does something well other teams have a tendency to copy it. The same is often the case in the real estate world. When a segment of the market finds success in one area other investors flock to it. Unless you are the leader in the area this is not the best approach to take. You can’t be afraid to try to things and stand out from the crowd. There are numerous different niches and paths you can take. Never be discouraged by the failure of others. Just because something didn’t work for someone else doesn’t mean it won’t work for you. If you are passionate about low priced properties in below average areas make that your niche. If you like investing in condos or mobile homes go for it. You don’t have to be like everyone else to be successful. You can’t be afraid to stand out from the crowd.
- Firm, But Flexible Vision. In your first few months in the business you will be presented with numerous scenarios. There will be several different properties and many different marketing options. Your goals and business plan should act as a guide until you know what works best. Like any other business there is a fine line between following your plan and knowing when to shift gears. If you stay too long with something you can be stubborn but if you don’t stay long enough you are impatient. True business leaders are often described as firm but flexible. They know when to jump off an idea and when to see it through. The best way to judge is to use your data as a guide and rely on the numbers. Listen to as many different opinions as you can but know that you are the final decision maker.
In the world of real estate you often have to walk before you can run. Use these five tips to help you survive the business until you are ready to thrive.