Do’s And Don’ts Of Successful Property Investors
September 5, 2018
Firstly, successful investors understand, and accept, that they’ll most likely make some mistakes along the way.
The difference is they’re not afraid of mistakes, and they decide to learn from them.
Successful investors also decide to celebrate their wins along the way — both large and small.
That is because they know that real estate success is a long-term journey, filled with some terrific highs which deserve to be recognised and celebrated.
Of course, there are lots more, including some things that they don’t do, so here are seven of these to assist you along your property investment travel.
1. Understand economics
Successful traders study the economics of the particular investment market, instead of federal, state or citywide”averages”.
Instead, you will need to be a specialist in a couple of geographic areas.
The smaller your market, the more likely it is you will be successful.
2. It’s imperative that you build a solid team that supports your long-term property investment vision.
Several new investors believe this can be done later when they locate a property or two, but effective investors understand from experience that this needs to occur at the very beginning.
Your team has to be trusted, experienced and understand who you are and what your plans for the future will be.
Successful traders also insist that their team members will need to have extensive experience and be investors.
Your staff members could include professionals like an accountant, an attorney, a buyers’ agent, mortgage broker, in addition to an independent house strategist.
3. Do not buy in hotspots.
Successful investors never, ever buy a piece of property in another”hotspot”.
In actuality, they always follow a methodical system and do not skip any steps because their system was created to protect them during market fluctuations.
Long-term property investment should be about strategies and systems which are very dull in their methodology.
Successful property investment should be about holding for the long-term and maintaining a steady hand — not looking for temporary”quick wins” via investing in the most recent hotshot.
4. Know that cheap is cheap.
The ideal property investors never purchase a property only because it appears reasonable — since they could quickly find out that it was not so cheap after all.
The fact of the matter is that an $800,000 property might be a better investment than a $200,000 one — it all depends upon how much revenue it generates and what the underlying economics of the place is.
Just because, previously, it might have sold for a vast sum, and you can now purchase it at 50 per cent off that cost doesn’t mean it’s a fantastic investment.