Successful investors everywhere know the power of real estate investing. Donald Trump, Warren Buffett, Edward Johnson, Harold Simmons, and other top investors have all dabbled in real estate at some point. They’ll tell you it’s one of the most stable investment opportunities out there. It’s true that you can’t liquify your earnings instantly, but the market isn’t as finicky either. You’re more likely to come out on top.
It’s a great way to invest, but you shouldn’t go into it unprepared. Though it’s a good market, things can (and probably will) go wrong. You must learn to roll with the punches and make a plan to come out on top.
Success in such an endeavor calls for certain personality traits. Some of the top real estate investors in the world have soared on the wings of the following traits for success.
- The Ability to Make Something Out of Nothing
Oftentimes, you’ll look at a property that’s crumbling and think that it doesn’t have the potential to make you rich. But a savvy investor knows that these properties are often diamonds in the rough. With the right contractor, designer, and marketing strategy, they can create a beautiful, profitable property.
Additionally, real estate requires a lot of money upfront. It’s not always easy to find funding, either, especially if you don’t have much saved up. A great investor will know how to invest in real estate, even if they only have a few thousand dollars to their name.
- A Drive to Succeed
There will be highs and lows with every real estate venture. Sometimes, the problems might seem overwhelming and hopeless. However, a good investor will see past this. They won’t quit at the first sign of trouble, even if their first property fails. They’ll continue trying for a loan, think of new ways to rehab a house, hire a consultant to cover their lack of knowledge, and stubbornly see each venture through to the end.
It’s from the mistakes that real estate investors learn the most. A good investor will recognize these pitfalls as opportunities to grow, and they’ll persevere until the end.
- Understanding of the Real Estate Market
The real estate market ultimately determines whether or not you’ll be successful in the industry. If you were putting hundreds of thousands of dollars into this market, wouldn’t you want to know a little bit more about how it operates?
Before investing, learn the basics. Understand the core principles of business. You should know a little about investing, as well as how to turn cash flow into profit. Invest some energy in learning economic principles as well, especially as they pertain to real estate. Things like cycles, market fluctuations, interest rates, monetary policy, and other economic factors can make a huge difference in the success of your business.
Perhaps most importantly, understand the market you’ll be entering. You should know the history of a certain area, growth trends, demographics, similar house prices, and other information that will help you make more informed decisions.
Once you’ve developed an understanding of some basic principles of both business and the real estate market, you’ll better understand that things don’t always go as planned. There are risks in any venture, and if you want to come out on top in any situation, you have to learn to adapt.
Adaptability can be learned, but it won’t be quick or easy. Those who can naturally look at the positive side of a situation and make something beautiful out of a mess are more likely to see long-term success.
- Team Player
Some of your investing will be done solo, but most of the time, you’ll have a few people on your team. In some cases, you might go into an investment with a partner, and you’ll have to learn to make decisions with someone else in mind.
There are also lenders, attorneys, accountants, inspectors, appraisers, clients, contractors, agents, and others who will contribute to the growth and success of your investment. A great investor knows how to work alongside these people rather than butting heads.
A career in real estate investing can be highly lucrative, but it may not be for everyone. It’s essential that you’re prepared for what’s ahead and that your personality can positively handle difficult challenges.
If you don’t possess these personality traits now, you have some work to do. You can get to the point where you’re ready for the real estate investing world, but it will take self-realization and a determination to make positive changes in your life.