Real Estate Investing could be daunting but you have decided that this is going to be your year. That’s great – I love the enthusiasm and the determination! I want this year, to be your year, too. I’ve written up 10 investing tips to help you reach your goals. These are drawn from my own experience as a real estate investor. Read on so you can be inspired and be prepared for the year ahead.
Investing Tips Meant for All Businesses
1. Write Down Your Goals.
At the top of this list of investing tips is to write down your goals is the first step you should take in real estate investing. Writing down goals makes them more tangible and concrete. This will make you more likely to visualize and make them a reality, as opposed to just a vague idea you have in your head. It’s easier to abandon an idea versus a written goal.
When writing your goals, reverse engineer them. How can I get to X? Think of every step that’s involved – from networking and finding properties, to contracts and closing costs. It’s helpful to do this so you have more of a game plan moving forward. It also helps you realize that your goals are in fact reachable.
I like to put my goals in eye view in my main working space. This way I know what I’m working towards. Or, save them on your computer and look over them every day as a morning ritual while you drink your coffee or tea.
2. Get Organized.
Speaking of rituals, getting organized and having a set schedule every day can help your productivity is investing tip No. 2. Create habits for yourself, like work always starts at 7 a.m. or that you will work distraction free on one kind of task every day for 2 hours. Before you know it, you’ll have reached your goal and some day you will be drawing your own investing tips for others. You’ll have done this simply because you put parameters around your day.
Keep your work space organized. No floating papers or documents randomly on your desktop. File things away and know where they are. This will help streamline all processes. And remember, time is money!
3. Cut the Fat!
At times you tend to neglect this as you start your own business. However, this is one of the most important investing tips I could impart with you that I hope would stick. How do you become successful in real estate investment? By making a return. The more capital you have to invest, the higher your returns is investing tip no.3.
Make sure to keep an eye on your finances and to get rid of projects, clients and partnerships that aren’t serving you well. The more liquid you are and the more money you have, the more you can invest. This is good advice not just for your finances but for your professional life in general. If there is staff or projects that are dragging you down emotionally or mentally it may be time to part with them.
4. Become Your Hometown Hero.
One of the most important investing tips is to be careful and selective with your deals and partnerships, at the end of the day, these are how you will make your money. Want to know how you can make more of them? By meeting as many people as possible in your industry. Create relationships with them. Show your dependability. Then, projects will quickly come your way.
Become a “hometown hero” by having a deep understanding of the markets in your town and nearby towns. Know the people that work in your industry in the area as well as adjacent industries. Invest in the people around you and you will be sure to get a return.
Investing Tips That Will Make A Difference
5. Pick a Lane: Investing in What You Know Best.
This advice is best for beginners. If you are already a seasoned real estate investor, you know it’s best to start with one facet of investing before moving on to others. By understanding flipping well, for example, you’ll be able to make better partnerships, choose better projects and make more money.
To know a little bit about a lot of things is not helpful when you are starting out in investing. Investing in what you know is less risky than investing in something you “kind of” know. Investing involves risk enough – let’s not make it worse.
In the end, people trust experts. You want your partners on projects to trust you. Real estate investing is a long game. Don’t view REI as a stint. Become really good at it over time.
6. Investing Tip To Maximize Your Time: Use Up Every Little Minute
Track your entire day tomorrow. Try to track every minute or five minute increments. Notice how you’re using your time.
For example, notice what you do when you’re waiting in line at the grocery store or you’re stuck in traffic on your way home from work. You could use this time to mindlessly scroll through social media or to listen to the radio. Instead, use it to send a quick follow-up email or call a lead.
The more quickly and efficiently you work the faster you will get to your goal.
7. Outsource When Needed.
In the beginning, you may have to do all the projects yourself because you do not have the capital to hire someone else. But once you do have that extra income, it may be useful to outsource parts of the job that 1) you’re not good at or 2) you don’t enjoy doing.
If you find yourself procrastinating or taking an absurdly long time to get something done, hire someone else to do it. Post a job on Indeed or on a freelance site like Upwork.
8. Stay Up-to-Date and Educated.
Warren Buffett once said that all he does all day is sit in his office and reads. I’m certainly not advocating for that, but you should make sure to stay up to date on all real estate trends and news. Dedicate time each week to getting caught up.
While no one can predict what the market will do, arming yourself with knowledge will help you from making bad deals and losing money. Read your local news especially, to get ahead of your competitor investors. Consider attending nearby conferences and seminars.
9. Stay Calm & Carry On.
Investing can be stressful. Lots of money is at stake, and it’s usually not just your capital but someone else’s. There are ups and downs, sometimes losses but also big wins.
The most important thing is to stay level headed throughout the process. Become unemotional about your projects. Don’t get too attached to a house you are flipping or an apartment you are renting. Finances might dictate at some point that you have to walk away from those projects. Allow yourself to be emotionally and mentally ready to do so.
10. Ready, You are All Set, Go!
As I stated in my first tip, it’s easy to think that investing in real estate this year is a good idea. It’s also easy to say you plan to grow your business by X percent. The hard part is the follow through.
The only way to make money off of real estate investing is by putting in the hard work. Put yourself out there and get to business. I know you can do it! And when you do, it’s not just the investment return that will make you feel good. The process of real estate investing is equally rewarding.
Conclusion
All of these tips have a common thread. Invest in yourself. This is where you will see returns. Invest not just your money, but your time and dedication, too. By doing so, you’ll be setting yourself up for success.
Do you have any tips for fellow investors? How is your 2019 going so far? Share with me in the comments!