5 Necessary Traits For New Investors
People have been investing in real estate since our country was founded. Over the past two hundred years, the methods may have changed but the principals remain the same. There are certain key traits that separate successful investors from those that struggle. These traits are often more important than numbers, contacts or anything else you can think about in the business. It is what makes you unique and drives people to work with you. They are particularly important when you are just starting out. In these critical early stages you will develop a reputation and a business model that can be difficult to change. If you are a new investor looking for somewhere to start consider the importance of these five characteristics.
- Knowledgeable. You need to dedicate yourself to learning as much about your business as possible. Real estate education can be difficult with all of the different terms and nuisances. Instead of trying to be an expert in all areas, you should pick a niche or two and make it your own. Doing this gives you the ability to paint yourself as an expert in a particular area. This comes in handy when you are trying to talk to real estate agents, attorneys and fellow investors. Growing your education should be something you do every day. Instead of going on your favorite website for a half hour use that time to read a handful of real estate blogs or the business section of your local newspaper. The people you talk to can instantly see if you don’t know what you are talking about. If you want to be involved in real estate you need to make learning as much as you can your top priority.
- Availability. It has often been said that people like to work with people they are comfortable with. The best way to gain this comfort is by putting yourself out there. You need to constantly talk to and meet as many people as possible. Going to networking meetings may not be your thing, but there are a handful of relationships to be gained there. The more frequently you go, the greater the level of comfort is. If a contact gets a potential deal, they will instantly think of you. In most every market, there are a handful of investors in the area. You can stand out from the crowd by simply making yourself available and meeting new people every day. It may seem unnecessary sometimes, but every real estate agent, attorney, or mortgage broker you meet is a potential contact. If you take just an hour out of your day and meet five new contacts, by the end of the week you will have met 25 people. Over the course of the month, you should meet well over 100 contacts. If just one or two want to work with you on a deal, it will have been worth the time and effort. If you are not present in your market, you will not be noticed.
- Reputation. Your reputation is often a deciding factor if people want to work with you or not. Everything you say and do is part of your reputation. Not calling back a referral will be noticed and remembered. How you talk to an attorney you are having problems with will be noted. It is often the minor conversations we have that make the biggest difference. In today’s world of increased technology, bad word of mouth travels pretty fast. If you fail to do what you say, you are going to get branded as someone who can’t be trusted. It is tempting to bend the rules or cross into a grey area while you are struggling for deals. One deal is never worth ruining your reputation over. Remember this with every action you take.
- Organization. It is important to remember that you are running a business. If you are not organized, you will end up losing deals or damaging relationships. You need to find a way to stay on top of everything you do. There are a handful of apps and websites that can help improve your organization. One missed meeting can set your business back. You need to run your business in much the same way as you would treat a traditional 9 to 5 job. This means getting up early, setting daily lists, and staying on top of expenses. You can run your business in whatever way you see fit, but you need to be organized.
- Persistence. If investing in real estate were easy, everyone would do it. The fact of the matter is that real estate can be very difficult at times. The odds of you becoming an overnight success aren’t very high. A more realistic scenario is that you may struggle your first few months gaining traction. You will have to meet with more people than you can imagine. Most of your offers will not get accepted. Those that are will not go as smoothly as you anticipate. The most successful investors do not give up at the first signs of struggle. They understand the grind and are willing to fight through it. Deals do not just fall into people’s laps. They are a cultivation of months – or even years – of hard work to get in that position.
There are many qualities that make up a good real estate investor. Instead of focusing on the nuts and bolts of the business, try to master these five traits.