5 Tips On Building A Sustainable Real Estate Investing Business
By JD Esajian on September 9, 2017
Right now, there is an investor out there about to close their first deal. The feeling they have at the closing table is one they will remember forever. At this point their business can go several ways. They can continue to have success and close more deals or they could hit a bump in the road and become stagnant. Fortunately, in real estate you directly determine the path you and your business takes. Opportunity in real estate is available to anyone who wants it. However, simply getting started and being successful are two different things. Anyone can close one deal but it takes a series of actions to build a sustainable business and become successful. Here are five tips on building a long term sustainable investing business.
- Create a business plan. Where many new investors fail is by not recognizing that real estate is just like any other business. Regardless of how many deals you plan on closing you need to create a dedicated business plan. What are your investing goals? Do you have a list of people that can help you achieve your goals? Where do you see yourself and your business in six, twelve & twenty-four months? How you answer these questions goes a long way in determining how you will conduct your business. You should also take inventory of your resources, strengths, weaknesses and education. If there is something holding you back there is a good chance you can change it. By not having a dedicated plan you may have short term success but eventually you will get off track and when you do you will have a tough time getting back on. Investing in real estate is not a get rich quick scheme and doesn’t happen without a plan. If you want long term success you need to start with a plan.
- Small steps. There are various ways to measure success. The most obvious way in real estate is by bottom line production. As important as the bottom line is there are other things you can do to gauge success. As we stated, creating a strong business does not happen overnight. There are plenty of things you can do that may not do much for your bottom line today but over time will really have an impact. Going to networking meetings, reaching out to local contacts, researching a new investing niche and passing along a lead you can’t use will all help your business in the long term. These are easy to dismiss because the impact isn’t immediate but you have to stick with them. Eventually you will meet someone that will change your business or find a niche that helps close a handful of deals. For some investors this can happen it a few months for others it can be as long as a few years. Taking baby steps forward is much better for your business than doing nothing at all.
- Step out of your comfort zone. Successful people in various businesses usually have something in common. At some point they have stepped out of their comfort zone to do something they did not want to do. This could be presenting at a networking meeting, cold calling real estate agents or spending Sunday at an open house. If you are comfortable as a real estate investor there is a good chance you are becoming stagnant. Humans are conditioned to find a comfort zone and stay there as long as possible. It is difficult doing something you don’t know or enjoy but usually after you are finished you feel amazing. You will not grow in any business if you are not willing to get out and explore something new or do something that you aren’t comfortable with. In real estate you may have short term success with a certain niche or in a certain market but eventually you will be forced to adapt. The sooner you are willing to do this the stronger your business will be.
- Network. There is a delicate balance that every business owner has to face. One eye may be on the bottom line but the other must be on growth. In real estate you are never too busy to stop networking. As great as things may be right now everything can change in 60 days. You may close a deal, lose two and the next thing you know your pipeline isn’t nearly as solid as it was just a few weeks ago. The best way to keep it filled is by constantly networking. Networking not only helps produce leads but it helps build relationships. These relationships can help get you through rough patches and help maintain any success you are having. The minute you stop networking you immediately lose all the momentum you may have built.
- Adjust habits. One of the things that makes real estate such a great business is that there are no set hours. You can work whenever there are deals to be had. As great as this may be for some others have a tough time adjusting. If you really want to make your mark in real estate you need to adjust your habits. You may be able to play golf on a Tuesday but to offset that you should work on a Sunday morning. For every day you pick your kids up from school there is an after-hours meeting you should attend. Building a business means you need to adjust your habits and your mindset and be ready to sacrifice for the greater good of your business.
Real estate investing is truly one of the best business you can be a part of. Not only can you enjoy short term success but if you play your cards right you can have lasting long-term success as well.