I have spent this past year creating content and teaching modules for people who are interested in learning the “business” of investment real estate. What has struck me while putting these trainings together is how much there is to learn and know to be good and might I dare say great as a real estate investor. I got really curious about why I am successful at this “business“. Yes you heard me right – although it is worth repeating – investing in real estate is a business.
Yes it might sound boring and unromantic but the truth is investing in real estate is a business. Unfortunately for our country this sector has been so misunderstood by the masses. So many people jumped in thinking it was “easy” and that anyone could make money as a real estate investor. The results speak for themselves it is not the truth.
I am a level headed sensible person so when I saw what it was going to take to be in this business I dove into every book I could get my hands on to learn about this noble art-form that for the most part was a closely held practice similar to the trades of masons where you had to inherit or be born into the business to learn the secrets.
I remember how unwilling potential mentors were to share what must have taken them years to learn.
What I discovered was that this craft required many skills that when woven together created the foundation for a solid business that when practiced rigorously resulted in wealth. So what are the skills that are necessary to succeed in this “business”?
Being a successful real estate investor involves many skill sets. You need to be organized, good communicator, multi-tasked, responsible, responsive, level-headed, resourceful, committed, good with numbers, intuitive, sensible, rational, adventurous, diligent, direct, political, keen, aware, creative, insightful, brave, true, trustworthy, great negotiator, stable, responsive,…….just to name a few.
It’s not enough to run numbers and buy a piece of property. Who is going to manage your investment, who is going to fill your vacancy, who is going to maintain your units, who is going to take the repair calls, who is going to do the repairs, who is going to take care of your apartments when they need to be detailed for the next tenant, who is going to negotiate contracts for services, who is going to set-up systems to collect rents and pay bills, who is going to evict a resident, who is going to send late payment notices, who is going………..??????
This is what I have found out over the years of being an investor and watching others fail miserably or succeed. There are three kinds of people who do very well in this business.
1st Person – Commits to the business full-time and spends the time necessary to learn the business. Approaches real estate investing with a sound business plan which creates a roadmap for their success. They have a teacher, coach or mentor that guides them who is an expert.
2nd Person – Already is a sound business owner with a stable foundation that can lay another system along side of what is already working. Their business is running so well that they now have time to learn about investing in real estate and approach real estate investing as a business.
3rd Person – Partner with one of the two above
If you are not one of the three above do yourself a favor and master what you are currently doing or become one of the three above.
I know this won’t be one of the most popular “real estate investment tips” but I’m not here to win a popularity contest. What I can tell you is that being a real estate investor is a business and a noble craft for those who take the time to learn the business and practice the skill sets necessary to succeed.