You Will Always Learn More By Doing
By JD Esajian on January 15, 2018
The real estate business is filled with investors who wish they started earlier. There are many stories of people who hung around the business for years before they finally dove in. They were worried about their lack of knowledge, lack of contacts or simply afraid to make a mistake. While there is nothing you can do that will ever guarantee success the best way to learn is by doing. Sure, there may be the occasional mistake but as long as it isn’t crushing you will learn from it and improve your business. There is truly no better time to start investing in real estate than right now and nothing standing in your way. Action regardless of the consequence is always better than standing idle with regret. Here are five valuable lessons you will only learn by doing.
- Dealing with setback. As much as you may envision success it doesn’t happen automatically. Consider your favorite real estate program and your favorite investor. On the surface, it may appear that they have the perfect business and everything at their disposal. The truth is that it took years to get to where they are today. Over that time, they faced numerous setbacks, disappointments and changes in their strategy. The most important lesson for any new investor is that things won’t always go the way you want. You are going to lose deals you have worked months on. There will be an unexpected issue with a rehab property during the process. Someone on your team may not be as reliable as you initially thought. There are dozens of potential pitfalls and landmines to avoid daily. Some days you will get frustrated and annoyed to the point you wonder what you are doing in the business. Other days you will feel on cloud nine and love every second in real estate. The highs should surpass the lows, but you do need to learn to deal with setback.
- Dealing with people. Relationships are the backbone of any successful real estate business. You can read out how to structure a deal or what to put on a contract, but it doesn’t help in the real world. Deals are often done by real people with real emotions who want to feel confident and comfortable with the people around them. You can have access to all the money and contacts in the world but if you are bad with people you will have a tough time growing your business. Everyone from your real estate agent to your contractor must be dealt with individually. You will be judged on not only what you say but how you say it. Screaming and yelling at the electrician or plumber for an oversight can have a serious negative impact on everyone else on your team. They may not work as hard for you or do a favor the next time you ask them. You can still demand quality work and effort, but you need to remember the impact of your actions.
- Evolving plans. The plans you make today may not be the same just six months from now. You can be dead set on something today, but that strategy may not work for your market. If you are stubborn and unwilling to shift gears you will be left behind wondering why you are not closing more deals. The best investors are those who are willing to listen to opinions and acknowledge when they need to change. This doesn’t mean you should bounce from idea to idea or market to market, but you need to keep an open mind. By sticking with a marketing or pricing strategy too long you box yourself in and slowly run out of options. You should have a clear vision in mind but be willing to change if it is not working.
- Updated marketing. Technology is truly constantly changing. Think back to how you used your phone just five years ago. There is a good chance that you use your phone today to search just about everything. Additionally, your social media options are now all available on your phone so you can avoid sitting on a laptop for hours. If you are not on top of changes to technology and marketing you will be left behind. Navigating these can be difficult but there are more companies and individuals that can help you than ever before. These people won’t break the bank and can completely change the perception of your business. You probably had an idea of how you want to market your business and find deals when you started out. However, just a few months later you realize it may not be practical. Unless you start marketing you never really know what you are getting.
- Finding a way. Running a business is like being in the middle of the ocean without a boat. If you find the right vessel you will be fine but without some help you may not make it. Like most people if you had to swim for your life you would find a way to do it. Investing in real estate is often about finding a way and scratching and clawing for everything you get. There is a certain grit and determination needed to get to where you want to go. You will have to hustle and work harder than you imagined and learn to think outside the box. Those investors who are resourceful and find a way to succeed will reap the benefits.
You can learn plenty from reading books, blogs and listening to fellow investors. However, the best education only comes from doing. Don’t be afraid to take a leap of faith and follow your passion today.