Do you think you have what it takes to become a success in the property investment sector? While there is a lot you can learn from taking courses and learning from experts, there are a few simple things that can make all the difference between success and failure. Today, we’re going to go through a few of the savvy habits shared by real estate investors that keep them on top of their game and ahead of the curve, Let’s take a closer look.
Deep market knowledge
While learning about property investment at a night class or privately run course can teach you a lot, ultimately, you need to build up your own knowledge. Choose your particular market, as outlined above, and learn as much as possible about it. Keep up to date with current trends, from political plans for regeneration through to knowledge of every new launch of apartment blocks, estates, and building projects in your local area. But it’s not just construction news you need to know about – far from it. You should also have a thorough understanding of current economic conditions, mortgage rates, consumer spending patterns and a whole lot more besides. Ultimately, the more you know, the better choices you will make when it comes to buying and either renting out or selling on properties.
Honest and ethical practices
As a property investor, you will be amongst a small and select group of people in your community. And make no mistake about it, word spreads fast if you make a mistake or try and rip someone off. While there are usually not many standard regulations in real estate, ultimately, there is often a set of ethical codes that other investors stand by. Break them and your reputation will go down the tubes – it’s as simple as that. You will find it hard to persuade people to do business with you, and your local reputation will soon get out to other investors and renters alike -the effect can be a lot more far-reaching than you might think. Be fair, honest, and ethical, however, and you will find that your property investment portfolio will be worth a lot more in the long run.
Work with a lawyer
Make no mistake about it, you need a thorough understanding of the regulations, laws, and terminology of the real estate industry. But even then, it might not be enough. Personal knowledge is sufficient to get you started, but there is virtually no area of property investment that you wouldn’t benefit more by employing the services f a reputable and knowledgeable lawyer. Many property investors think they can do it all, but sometimes the smallest little mistake can put them in dangerously hot water. Make sure you give yourself that extra layer of protection by developing a good working relationship with a lawyer that can protect you and your interests.
Hire an accountant
It’s possible for property investors to do their own tax returns and financial planning, of course. But ultimately, it’s a job that is almost always performed better by a professional accountant. Understanding the complexities of tax laws and your annual expenses is a full-time job in itself, and when you throw in the difficulties of managing multiple properties in a portfolio, the chances are you will make mistakes. Hiring an accountant will help you keep your money and assets organized, as well as save you a lot of cash when it comes to tax return time. And ultimately, the costs of hiring an accountant will pale into insignificance when held against the money they save you.
Find a mentor
There are a perception that property investors are ‘go it alone’ types who create successful businesses off of their own back. But you can almost guarantee that behind every successful investor is a mentor that has taught them many different skills and given them first class advice. No matter what area of the property market you are trying to corner, someone will have skills, experience, and knowledge way more than you – so why not reach out to them and ask for help? Whether it’s a real estate mentor, a lawyer, or even a family friend, there will always be people out there who can help. Your job, in the early days of your property investing career – and beyond – is to find them.
First class planning
Like any other business, savvy property investors know that planning can make all the difference between building up a fantastic real estate portfolio and a suffering from significant losses. You’ll need to work out your goals – both long-term and short-term – and understand the big picture. A healthy plan of action will help you keep on track, organized, and working towards your long-term priorities, as well as keeping you from worrying about any minor setbacks – which will crop up from time to time.
Develop a niche
It is possible to invest in all kinds of property, whether it’s a buy to let or commercial offices. But at the end of the day, you will find you are much better focusing on a particular area. Find a niche, work on understanding everything about it, and don’t move on to other sectors until you have in-depth knowledge. It takes a long time to become a fruitful and knowledgeable property investor, but baby steps and embracing a niche will give you more opportunities to get there.
Finally, there are a lot of myths around the art of property investment. Many people think it is an easy route to massive wealth, but the reality is somewhat different. Property investment can be incredibly challenging and is highly risky – you are, effectively, dealing with enormous monetary sums that are large enough to make the average person’s eyes water. You will need expertise, first-class planning, and a lot of focus to even survive, let alone thrive. However, with some of the savvy habits listed above, you will be in with a fighting chance of leading a successful – and profitable – property investment career. Good luck!