Are You An Effective Real Estate Investors?

After acquiring some hands-on experience in real estate investing, now let’s pause for a while and do a quick check. Let’s ask ourselves: Are we an effective real estate investor so far? Here we don’t question if we are successful or not because success is simply an end result or an effect. Before we can attain any good result or effect, first we must make sure we have the good causes.

Good habits are better than good luck

There is a phrase in Chinese: Good habits are better than good luck. For example, if you are fat by nature but now you have a new habit to work out one hour in gym for 4 days a week, in 6 months time you can also have a sexy body like Chris Pratt in Guardians of the Galaxy. On the contrary, if you are born with a silver spoon but you have a habit of reckless gambling and you are addicted to it – we don’t need to be a genius to know that sooner or later you are going to lose all your wealth.

There are certain habits that top real estate investors commonly possess. In this article we will identify 7 habits that highly effective real estate investors share. To perform the quick “medical checkup”, let’s examine if we have all these 7 habits or good causes.

1. Know the market

This is very similar to the habit of housewives going to market every week. As with any business, it is imperative to stay up to date with the laws, regulations, terminology and trends that form the basis of the real estate investor’s business. Investors who fall behind risk not only losing momentum in their businesses, but also legal ramifications if laws are ignored or broken. Effective real estate investors like to stay educated and updated of any regulatory changes or economic trends. With such habit they acquire an in-depth knowledge of their selected market(s).

Keeping abreast of current trends, including any changes in prices and rules, to name a few, enables real estate investors to acknowledge current conditions, and plan for the future. This enables investors to predict when trends may change, creating potential opportunities for the prepared investor.

2. Know the plan

A business plan allows investors to visualise the big picture, which helps maintain focus on the goals rather than on any minor setbacks. Real estate investing can be complicated and demanding, and a habit of constantly stick to the plan can keep investors organised and on task. For example, if your plan is to acquire enough properties that generate cash flow for your retirement life, a heated market will never entice you to jump into the hot soup of risky flipping deals.

3. Know the place

This is the habit of enduring. It is important for investors to develop a focus in order to gain the depth of knowledge essential to becoming successful. Taking the time to develop this level of understanding is integral to the long-term success of the investor. Once a particular market is mastered, the investor can then move on to additional areas using the same in-depth approach.

4. Know the risks – and how to reduce them

Stock or futures market investors are inundated with warnings regarding the inherent risks involved in investing. Real estate investors, however, are more likely to see advertisements claiming just the opposite – that it is easy to make money in real estate. Prudent real estate investors have a habit of risk assessment – not only in terms of real estate deals, but also the legal implications involved – and adjust their businesses to reduce those risks.

5. Know where to find help

Learning the real estate investing business is challenging to those who like to do things on their own. Effective real estate investors often attribute part of their success to others – whether a mentor, lawyer or supportive friend. Rather than risk time and money tacking a difficult problem, effective real estate investors know it is worth the additional costs (in terms of money and ego) to embrace other people’s expertise.

A network can provide important support and create opportunities to a new or experienced real estate investor. This team is comprised of well-chosen mentors, business partners, clients, and professionals such as accountants, lawyers, real estate agents, contractors, etc. Because much of real estate investing relies on experiential based learning, savvy real estate investors habitually seek help from experienced team members.

6. Know The People

Referrals generate a sizable portion of a real estate investor’s business, so it is critical that investors treat others with respect. This includes business partners, associates, clients, renters and anyone with whom the investor has a business relationship. Effective real estate investors pay attention to detail, listen and respond to complaints and concerns, and represent their business in a positive and professional manner.

7. Know Yourself

Nowadays it’s sadly to say that nobody is obligated to uphold a particular degree of ethics. Although it would be easy to take advantage of this situation, most successful real estate investors maintain high ethical standards. Since real estate investing involves people, an investor’s reputation is likely to be far reaching. Effective real estate investors know it is better to be fair, rather than seeing what they can get away with.

All businesses revolve around people. Investors can only benefit in the long run by operating with integrity and by showing respect to associates and clients. If you are honest and ethical, you will become successful in real estate investment, even if you are not a risk taker.

Despite abundant advertisements claiming that real estate investing is an easy way to wealth, it is in fact a challenging business requiring good standard of habits. Though it may be relatively simple to enjoy short-lived profits, developing a long-term real estate investing business requires skills, effort and these 7 important habits. Remember, good habits are better than good luck!

About The Author

ongkl

Coming from a humble little town named Tangkak in north Johor state of Malaysia, I am so lucky to have chances to learn and work both in Johor Bahru and Singapore – a conurbation with 6.49 million still fast growing population – since year 1996. Hope now I can have a chance to contribute back to the community by sharing what I see, what I know and what I learn in this wonderful place.

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