The 7 “Must Do” Real Estate Investing Tips
One of the common questions I get from new investors is if I have any real estate investing tips to share. Having been in the business for such a long time, I have met a lot of investors and observed common traits and behaviors that have differentiated the successful investors from the mediocre ones.
In this post, I want to share 7 “Must Do” real estate investing tips that will hopefully bring new investors, who are looking to get into the business or are struggling to get the business off the ground, some clarity and renewed vision.
Real Estate Investing Tips – 7 “Must Do”
- Make a Plan. And more importantly, reverse engineer it. I like to create short term plans, no more than one year out. For instance, if your goal is to wholesale consistently 2 deals a month by the end of 12 months, what is going to take to get there? What marketing do you need to do to consistently generate enough leads so you can close at least 2 deals a month? You want to create predictability in your real estate business and therefore consistency. So creating a plan is not enough, unless you create the mechanics behind it and reverse engineer it. Would you like to learn how to create a predictable and consistent business? All my courses and training are designed around this model.
- Research the Markets. Different strategies work in different markets. Some areas are better for buy and hold. Some are better for wholesaling. And within those areas and strategies, what is the supply and demand? This takes research. Getting into investing without doing this research first, it’s too risky. There are market data and websites, which make this information available. National Association of Realtors is a good one for reliable data.
- Be Honest and Transparent. Let’s face it. Real estate investors got a bad reputation over the years. Greed and lack of integrity have always been a problem when it comes to real estate. But it does not have to be that way. You can be successful and make a lot of money in this business by being honest and transparent.
- Don’t try to reinvent the wheel. Isn’t it so much easier and foolproof to follow in the footsteps of someone who has already done it and succeeded? Someone else has already gone through the trials and errors, spent a lot of money and sleepless nights. You don’t have to do it again. When I started in real estate, back in the ‘80s, I had no choice. There we no mentors. No real training (only some books.) It took me about 8 years to finally get the hang of it. Now I am eager to leave a legacy. To pass the information down to other people who can benefit from it without going through all the trials and errors.
- Develop your own style and niche. Once you have learnt the business and created your system, differentiate yourself from the competition by creating your own niche and style. This is the beauty of real estate investing. It’s a dynamic business. Things change all the time. Strategies. Niches. Society’s (more specifically sellers and buyers) perceptionsI stumbled into the concept of wholesaling by chance, before wholesaling was even a strategy. I am actually a pioneer in this field. I was doing options and lease options. I ran across someone who was selling contracts without closing on the properties by doing double closings. It seemed as a good idea, so I started doing it and perfected it. Instead of options, I wrote sale contracts with strong clauses to allow me to market the contract, assign it or double close. And that is how wholesaling came about.
- “Stay” in the business. I am all for technology and streamlining processes. Unfortunately I have seen automation taking away the most important part of this business. Human interaction. This is a “people’s business.” Your personality, your brand and your vision are crucial to the longevity and success of your real estate career. You can automate 90% of the business, but in the store front, it should be you. And eventually other people like you, who you feel have your same vision and personality. Grow slow, but solid, never losing sight of who you are and what your business is about. Be yourself.
- Stay educated. As I stated earlier, real estate investing is a dynamic business. It is ever evolving. You need to think ahead. Be informed. Be eager to scratch things that don’t work and go back to the drawing board. In other words, be progressive and proactive.
I hope this real estate investing tips helped you re-frame your ideas of what you believed real estate investing was about. It takes so much more than strategies and mechanics to be successful.