Chances are you chose to invest in real estate because it is one of the fastest ways to build wealth – if you do it right. There are plenty of real estate strategies, each one different from the next. But it’s about more than implementing a strategy: real estate millionaires and successful real estate investors also exhibit certain habits that enable their success. Here are 7 habits every real estate investor should start practicing today.
1. Make a Plan
Real estate is a challenging business, and there’s always competition. When starting out, most investors create a business plan to establish milestones, better understand their competition and motivated sellers, and measure their financial stability.
Successful investors do not stop there though. They complete a process called the business plan cycle. Stable real estate investing businesses do this annually, and sometimes break it down into quarterly operating plans. If the focus is growth and heavily sales driven, it may make sense to conduct monthly operating plans. This also makes it easier to address high-impact events, like a change in the market or competitor landscape, or a new legislation that triggers a review of the strategy.
Having a plan helps them accomplish short- and long-term goals, so they can see the big picture, ensure performance objectives are being met, and identify options for growth and when it is time to change or invest in new business lines.
Jorge Abreu has over 14 years of real estate investing experience. He started with single-family homes and gradually moved up to multifamily apartments. He is also the owner of JNT Construction. He has 3,400+ doors now, but his goal is to reach 10,000 doors by the end of 2021 by creating strategic partnerships and implementing systems for scalability.
2. Keep Up with Trends
Do you lead or do you follow? Guess what successful real estate investors do.
They keep up with the latest trends, such as market and taxation changes, and other economic factors. They also continue to educate themselves to make informed business decisions.
Do not get too comfortable. The only certainty is that things change. If you stay updated and can predict trends, you can recognize opportunities and adapt quickly enough, taking the lead.
3. Focus on a Niche
Wait, don’t most successful real estate investors move between business lines or within multiple? Yes, that is true for many, BUT they didn’t do it all at the same time.
The key is to find the best real estate niche (for you), learn it, work well within it, and eventually expand. This ties in with your real estate investment strategy and business plan cycle, helping you identify when it’s the right time to grow or maybe try something new.
Randy Langenderfer started in real estate when he purchased a duplex and began focusing on single-family homes. He then became a money lender for remodeling single-family properties in Florida, Ohio, and Texas, with a combined value exceeding $2.5M. In recent years, his focus has shifted to multifamily properties.
4. Build a Reputation
There is nothing worse than a crooked investor. The actions you take today will impact your chances of success. Don’t jeopardize your long-term goals for some quick wins.
Be ethical. A good reputation will attract more leads and result in more deals. Treat everyone with respect, from business partners to contractors to customers. Real Estate Investing is about who knows you and who you know. Make sure you are known for being fair and trustworthy.
Sidney Torres started in real estate in 1997, when he flipped his first property. Since then, he has diversified into commercial real estate, renovating historic buildings into elegant hotels. After Hurricane Katrina hit New Orleans, people were desperate, and Torres quickly moved to get housing in good shape. He got new equipment and created SDT Waste and Debris Services to remove debris and garbage after the storm, including from the famous French Quarter. His work ethic has not gone unnoticed. He’s been featured in The New York Times, The Wall Street Journal, and Forbes magazine and has also appeared on CNBC, NBC Nightly News, and MSNBC.
5. Build a Network
No man is an island. Every man is a piece of the continent. Building relationships with other real estate professionals creates unique opportunities to boost your real estate investment career.
Your network can include business partners, members of non-profit organizations, attorneys, inspectors, mortgage brokers, marketers, and even a mentor. The idea is these people will challenge you and offer you guidance when you need expert advice.
6. Stay Organized
Having a “big picture” plan is essential, but so are the details to make it happen. Many real estate investors fail due to a lack of organization. They miss deadlines and do not call leads back in a timely fashion.
Successful, wealthy real estate investors employ organizers and have to-do lists to help them stay on top of things and track where their money is going.
If you do not do this already, hire someone who is a good fit for the role of organizer within your real estate investing company, someone who can help you get organized and monitor expenses.
Scott and Karen Price started their REI business in 1994, when they purchased their first rental. Scott grew his investments by partnering with co-investors, and now owns a growing portfolio of multifamily, single-family, office, medical, retail, NNN, and land investments. Karen provides the project, property management, and accounting services necessary to ensure all operations run smoothly.
7. Work with the Right People
Finding and hiring the right people is one of the biggest challenges for any company, and it is no different in real estate. Having a great team to delegate and get things done will expedite your success.
No one can do it all by themselves. Small REI businesses owners need to prioritize who to hire first so they can recover their time to focus on more significant aspects of the business. At the top of the list are:
- Project managers
- Virtual Assistants
Jonathan Cohen has been investing since 2010 and focusing on distressed real estate opportunities, with over $450M transactions. His current focus is the strategic direction of his company, investor development, acquisition, and dispositions.
To grow your REI business, you need talented, passionate people who keep driving your dream forward.
Fortunately, we can help you and be the team you want in your corner. GoForClose is the only all-inclusive marketing agency in the industry with the right marketing expertise, data, and technology to find and nurture motivated seller leads, then provide a warm transfer of them to you or your sales team.
You can have the manpower without the trouble of hiring, training, and managing HR for your VAs. Our Internal Sales Associates have the Real Estate training, knowledge, and expertise to talk to and market to homeowners and answer all inquiries (via phone, SMS, or email).
If you have questions or are curious to know more, request a free consultation below.