Thinking about becoming a real estate investor and actually getting out there and investing in properties are utterly different. It allows you to work for yourself, manage your working hours and make money even when you are sleeping. But all of these perks comes with hard work.
I don’t believe in get-rich-quick formulas and let me tell you after being in this field for more than 2 decades, there aren’t any such formulas out there. These are all different ways of taking money out of your pocket and giving you a bunch of advices, which you can find on BiggerPockets or other forums for free too. So, what it takes to be a successful real estate investor? Let’s explore:
1. Passion to build a career
Passion might sound a bit overwhelming and dramatic but it is the core of success. If you want to be successful as a real estate investor, you need to ensure that you are passionate about it. You don’t count your hours like a 9-5 day job because you want to build a career out of it. You want to create passive income that would give you the freedom to live your life according to your own terms. This passion drives you to go through the difficult times that you’ll face at the start of your real estate investing career.
If you are passionate about something, it gives you the determination to endure bad patches. Yes, they will get bad. You might find problematic tenants or depreciation in the market or trouble contractors or too expensive property. But you need determination to keep going, to ensure that all of this is temporary and there’ll be a time when you would see the fruits of your efforts.
Patience is the key to success. It is a trait that helps you keep out of trouble. It’s OK to have passion and determination to make it big in the real estate investment world. But it’s your patience that will help you make a good decision. You can’t jump into buying every new property. You need to be patient enough to figure out the pros and cons and calculating the return on investment. Patience also gives you a space to think. If you can’t get hold of one property, it’s OK, you can find another one. There are many good deals out there. You just need to be patient enough to find them.
4. Practicing the right process
It is important to lay out a process of running your business. You can’t just follow your instinct while investing in real estate. You need to figure out a process of finding, inspecting, buying, flipping and managing investment properties. If you make a habit of practicing the right process, it will act like your safety net. If you find it difficult to set up a process, don’t hesitate from asking for help. Always remember what Dumbledore said to Harry Potter, “Help will always be given at Hogwarts to those who ask for it.”