Real Estate Success

By Steve Gillman - 2007

How do you achieve real estate success? By way of the many things you repeatedly do right, and it is your habits that ensure they get done. Below are some of the more important habits to develop for your real estate investing success.

Real Estate Success Habits

Get people's names, and tell them yours. Your most valuable resource in real estate investing is people, and the more you know, the more likely you are to find good properties, or buyers for your good properties. Befriend the right people too, starting with a real estate agent that gets many listings of the type you are interested in. It would be nice if he called you first, right?

Think in numbers. Consider the people involved first, but don't forget the relevant numbers. When you look at a rental property, for example, you should be thinking about income, expenses, and cap rates. Imagine how certain changes would allow you to raise the income, and what that would do to the value. Having a "feeling" about a property, and ignoring the numbers, gets investors into trouble.

Reduce risks. Include those inspection, financing, and other contingency clauses in the offer, so you'll get your deposit back when a deal falls through. Plan your exit strategy before you buy. Determine value by comparables, not "hunches." Buy through a corporation or LLC. Always look for ways to reduce risks.

Have supplies on you always. At least have business cards, pen and paper on you. You never know when you might see a property for sale, or hear about one. One mention that you invest in real estate, and sellers, buyers and other investors suddenly appear with information, opinions, and sometimes deals. So be ready.

Real Estate Success Is Found in Action

Have action-oriented goals. Develop the habit of taking regular steps towards real estate success. Make yourself to look at a certain number of properties, and maybe even to write a certain number of offers each month. Set minimum goals for all sorts of little steps, like making five phone calls per week, checking online for new listings twice per week, and so on. Action creates momentum, and repeated action creates habits. Good habits lead to success.

Learning more about investing from books, magazines and even tapes or CDs is a great idea, but not enough. Be sure to spend as much time doing something as reading about it. Many of us let our fascination and enjoyment of reading about investing get in the way of actually investing, and of our real estate success.

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