Forgive the harsh starter, but the real estate industry is not for the faint-hearted. It’s an industry that has gotten fiercer and higher chances are that things are not changing any day soon. But then, you may be wondering how all the other real estate investors (and realtors) are making it in the business, right? Well, you’ll be surprised to know that in real estate, it’s less about what you have or how much you can raise, but more about what you know, who you know, and how strategic you are when making your investments. With this in mind as a brief, below are some killer tips on how to master the art of real estate investing.
1. Prioritize On Preparation and Planning
If you’re getting into real estate, the first thing you want to do is to have a sustainable plan that will see you sail the mucky real estate waters. While it’s easy to be swayed away with the idea that it will be smooth sailing all the way, you may be in for a shocker. At times, it only takes one or a few investment blunders and you start faltering as a real estate entrepreneur. However, this may not be the case if you take your time to plan right and strategize.
There are so many opportunities in real estate. Actually, it’s a gold mine, but only when the right strategies are implemented. So, do not be in a rush to showcase and sell properties, you’ll have all the time for that and more. Whether you’re a new real estate investor or a seasoned one, below are some strategies that can help propel your goals:
- Create an organized system that works – The more organized you are, the better and easier it will be for you to manage your time, resources, and manpower. This is a strategy that will increase your chances of success while helping you to become better at what you do.
- Research – To make an investment in real estate, you need to have an eye for quality. Yes, it may be a dilapidated house, but with an eye that sees things beyond the obvious, you can always turn any home into what your clients need. Additionally, you need to be out and about checking out the latest listings that promise to add value to your venture. But it can be a bit challenging to do secure the best deals on your own when starting out, so you may want to build your portfolio by joining a reputed company that does just that. They help you acquire the property, rehabilitate it, have it inspected, and acquires warranty before you purchase the property. If you’re interested in rental property, you may also not have to worry about management since these companies provide this service.
- Find a mentor – In all honesty, not everyone will suit that title. It can take time to find the right mentor because as it turns out, most real estate brokers will only see you as competition and nothing good will come out of such a relationship. Find a mentor who is happy to share with you the secrets to making it in real estate, success strategies, and the experiences they’ve been through.
2. Fix Your Credit History
Before you dive into real estate, it’s crucial to check your credit history just to make sure that you’re a credit-worthy entrepreneur. This is because from time to time, you may need to get a loan to secure deals in good timing. Some credit history report issues are just minor mistakes that can be corrected easily. For these, get them sorted out as early as possible. The last thing you want is bad credit history getting the way when targeting profitable opportunities.
3. Monitor and Understand Economic Variables
This doesn’t necessarily mean turning into a finance Einstein overnight. However, it’s good to understand the various ways real estate prices are affected by the economy. Sometimes making it big in real estate means grabbing opportunities that don’t appear obvious to other people. For instance, fix and flip investors purchase properties at rock-bottom prices, renovate them, and sell them a much higher price for a handsome profit. To ensure you’re making the right decision, however, you may need to assess a few factors, including certain economic variables. These may include the current economic situation, lending statistics, bank interest rates vs. private lender’s interest rates, and the best time to invest based on demand and supply.
4. Knowing the Competition
There are so many pitfalls in real estate and unfortunately, most of them are due to the tough competition in the industry. Well, it may not console you enough, but the cake is big enough for everyone to get a piece. It just depends on the size you want and how much effort you’re willing to put in. Even as you conduct research, get your finances together, seek mentorship, partner with your successful predecessors, and put the right strategies in place, it’s important to know your competition. This way, you’ll know who you’re up against and what you’re getting yourself into.
5. Building a Reputable Brand
There are various ways to build a good reputation. Having a track record that supersedes your clients’ expectations will give you a better standing amidst the competition. Remember, your clients are not after you because you drive a classy car or dress in expensive suits, they are after your credible word, professionalism, and experience. Hone these attributes and see a dramatic change in your operations.
Finally, as the first rule of thumb says, learn, and then earn. Before you dump your resources into the pipe dream, find an inexpensive way to educate yourself. You don’t need to be in a flashy seminar, dressed in pearly whites, and drinking champagne just because others are doing it. There are various ways to educate yourself on how to manage real estate business, how to make sound financial decisions in real estate, and how to find the best real estate deals. You can find all these through a mentor, an online course, or through the tips provided above.