The real estate industry is notorious for attracting folks who are eager to make a quick buck. But like any other business, success doesn’t happen overnight. In fact, it can take years for even the most steadfast real estate investors to start seeing profits.
Knowing this, it should come as no surprise that, according to William Bronchick and Robert Dahlstorm, authors of Flipping Properties, 90 percent of those who enroll in real estate seminars drop out after three months. Bronchick and Dahlstorm agree that investing in real estate should be treated as a serious career that requires a plan of action and realistic expectations. Meaning, don’t assume you’re going to become the next Ivanka Trump after a few weeks in the business.
As with most entrepreneurs, there is a set of routines and procedures that differentiate successful real estate investors from, well…everyone else. We have identified five key habits these real estate investors share that you can emulate to make your foray into real estate a lucrative one.
5 Key Habits of Savvy Real Estate Investors:
Make a Business Plan
This is an important first step necessary for achieving short- and long-term goals. Investing in real estate can be pretty complicated, and having a solid plan will help you visualize the big picture and keep you on task when things get hairy.
Become an Expert in Your Selected Market
Keeping up-to-date on trends and mortgage rates in the market where you buy and sell properties is critical to a profitable career in real estate. Investors who stay in the know are better able to predict when trends may change, which opens the door to potential opportunities.
Develop a Niche
As a new investor, you may be tempted to dabble in different real estate markets to see where you can make the most money. Resist the urge! Shrewd real estate investors develop a deep focus in one area (luxury condos or lake homes, for example) to gain the depth of knowledge required to become successful. Once you’ve mastered one market you can move onto another.
Invest in an Account
Going the DIY route when handling your real estate business’ books isn’t worth the stress. By hiring an accountant, you’ll spend less time crunching numbers and more time exploring your market and connecting with other members of the real estate community that can help you grow.
When it comes to building a career in real estate, your personal and professional networks can be gold mines for discovering investment opportunities. Meeting regularly with a mentor, business partners, and clients allows you to give and receive support and make new connections for continued success.
Related: 5 Keys to Building Wealth
Fact: This is half-true. While paying off your debts can be one of the fastest ways to improve your credit score, closing your accounts can actually hurt you. This is because closing accounts narrows the gap between your debts and your available credit. The more credit you have available that you’re not using, the more responsible you appear to lenders.
This guest post was contributed by Girls Guide to Real Estate.