Whether you have been a property investor for some time or you’re just starting out, this handy guide to the disciplines involved will help you to vastly improve your potential and that of your business.
Read on for ten vital habits that every successful property investor must develop.
1. Strong Time Management
As you grow a portfolio, you’ll need to spend a sufficient amount of time handling the affairs of each client, each property and everyone involved in the maintenance and management of your buildings. For this reason, you’ll need to keep to a tight schedule at all times.
2. Regular Market Engagement
Property investors must keep track of local and national markets, and should always have an eye on where they plan to invest next.
If, for example, you plan to “flip” buildings sold at property auctions or through a house buying professional company, you should follow the activities of the auctioneers that appear most relevant to your niche, and keep track of the trajectories of their guide prices.
3. Outsourcing
While it often appears cheaper to do everything yourself, being a one-person band can play havoc with your time management and stress levels – and may see you falling behind in your duties.
At the very least, you should consider using an accountant – as these specialists may actually help you to spend less and often end up “paying for themselves”.
You might also consider using property sourcing and management specialists to prevent your work.
4. Specializing
It’s easier to excel in property investment when you aren’t trying to tackle every inch of the national real estate and rental sectors. Try to pick a specific area to make things much easier.
Finding a “niche” will help you to retain a level of expertise and to streamline your activities.
5. Networking
Build your list of contacts by attending industry conventions or simply engaging with the right brands on social media.
If the right people know your name, the more likely you are to receive recommendations and word of mouth referrals, or to form lucrative partnerships with other specialists.
6. Money Management
This aspect likely goes without saying, but having a clear handle on your budget, your overheads and the potential ROI of each investment will stand you in excellent stead.
7. Knowing When to Walk Away
You don’t have to seize every opportunity that comes your way. Great risk management involves recognizing when a project isn’t for you.
Whether it’s likely to put too great a strain on your budget, or the payoff doesn’t seem worth the expense and effort involved, knowing when to turn work down graciously is a vital skill.
8. Studying the Wider Sector
You must keep your finger on the pulse of the real estate industry to be able to recognize great opportunities and to communicate with other key players.
Whether it’s building trends, Web 3.0 investment tools, developments in property management tech or anything else besides, you should retain a strong understanding of the progress that is constantly being made within your industry.
9. Communication
As a great deal of money changes hands within the property industry, your stakeholders and clients need to be informed of progress regularly and clearly.
In developing strong communication skills, you can put your contacts at ease, help them feel confident in your competence and avoid confusion at all times.
10. Planning
Great property investors are always planning the next step. Set monthly, quarterly and annual targets as well as developing clear five and ten year plans – then look even further beyond.
Planning in this level of detail will help you to expertly manage your career and guide your business ventures and portfolio in the direction that will work best for you. It will also help you to come up with contingencies in case of unexpected problems further down the line.
The above habits will make a huge difference to your success as a property investor, and will make your career far easier to manage as it gathers traction.