How To Overcome Real Estate’s Most Common Challenges
How can real estate investors overcome this year’s top challenges and invest successfully?
Make no mistake; there will always be challenges, and bumps on the road to where you want to go. So what are some of those hurdles holding back new investors from getting started, and the experienced from breaking through their goals this year? How can you champion them to achieve more of what you want most?
Challenge 1: Time
Both new and current real estate investors can feel time strapped when it comes to getting to the next level. The good news is that we all have the same wealth of hours in a day and week. That goes for the aspiring newbie waiting to do their first deal, and those doing over 100 deals a year. It is all in how you use it. Gain more time by prioritizing activities, saying no more often, dropping the ax on distractions like TV and email, demanding hyper-efficiency, and leveraging the time of others as well as tech tools, and existing systems and data.
Challenge 2: Self-Doubt
Even the most optimistic and bullish entrepreneurs and real estate CEOs can have days when they doubt themselves and their plans. That often happens when planning a big breakthrough. Change and trying new things can be daunting, and big results can take work. Overcome this challenge by cultivating a positive environment, and by recognizing the excuses and perfectionism with tempts you to stall or procrastinate for what it is. Then push ahead anyway.
Challenge 3: Uncertainty Over the Market
We can pour over the data endlessly, look at various graphs and indicators, and base our emotions on the media headlines of the hour, or not. The bottom line is that no one really knows exactly where the market is going and when, with laser precision. That’s something even Warren Buffett admits. The great news is that it doesn’t really matter. Providing you make investments that are designed to thrive in all markets, it really doesn’t make a difference, and you’ll be able to make just as much money in a boom and a bust.
Challenge 4: Tech Skills
The real estate industry is only going to become more integrated with technology, just like the rest of our lives. Technology is a powerful ally which empowers investors and business owners to get more done in less time. There are many new real estate tech tools that are incredibly easy to use. Many are just ‘drag and drop’. Still, some real estate investors just don’t pride themselves on being tech savvy. Even the easiest to use website builders and blogs can drive them insane and become a major time suck. That’s okay. Hire someone to do it for you, and get back to closing deals. You are going to make a lot more from signing contracts than fiddling around with the code.
Challenge 5: Competition
There will likely be a growing number of real estate investors, gurus, agents, and tech startups, until there is another correction. Try to find anyone who was in the industry before 2008. There may be a handful. Look for how many have come through 2 or 3 complete cycle rotations. Sam Zell and Warren Buffett are a couple of them. The vast majority of ‘competitors’ really do no business at all, barely make minimum wage, and don’t last in the industry for more than a year or two. Those who spend too much time on the others are going to be stressed out, and distracted. Worry about being the best on focusing on serving clients the best. The results will take care of itself.
Challenge 6: Funding
Aside from time, the most common challenge most individuals cite in getting ahead is money. They believe more money is always the key to growth. It can help. But it is often innovative thinking and strategy that makes the real difference. Fortunately those who do really need the cash will likely find plenty of lenders out there fighting for your business. There are banks, credit unions, hard money lenders, hedge fund conduits, and private mortgage lenders all looking to put their capital to work.
Challenge 7: Knowledge
There is always more to learn about real estate investing, and it is always wise to get educated before you dive into something new. However, learning should not be an excuse not to take real action and to make real money in real estate. If you are brand new take a crash course and get a coach and hit the ground running. If you just need to get to the next level set a learning schedule for the year, and fill in with coaches, consultants, professionals, and a mastermind group in the meantime.