There’s never a secret recipe for gaining success in real estate, but these six habits might help you find it.
By: Onerent Editorial Staff
Career success for many means financial wealth and prosperity. For others it may mean living a comfortable work-life balance. Which ever definition of success you follow, using these six habits successful real estate investors follow is a good way to start.
1) Make A Roadmap, But Be Flexible
The vast majority of real estate investors often make a roadmap and stick to it, except when it doesn’t go as follows. They will later tweak a few parts of their roadmap as needed so that it survives for the future. Your roadmap can be a 30-60-90 day plan, marketing plan, or any form of project planning for the future.
The key is to have the discipline to work the plan. It’s easy to put ideas on a pen and paper however actually following through, launching, and tweaking the plan is rarely seen. Many people have penned outstanding strategies, but never followed through on them. Trust your roadmap, be flexible, and get it done.
Learn more about rental property marketing.
2) Connect on LinkedIn
Most real estate investors know that connecting with owners, investors, and mentors in person are the bread and butter of their business. The most successful real estate investors understand that they need to go the extra mile and connect with them on LinkedIn. LinkedIn is the largest online community for business professionals. The real estate industry is built on trust and reputation. It’s easy to meet someone in person, hand them their business card, and then send them a follow up email. But take another step to connect with them on LinkedIn. This is a great way to showcase your reputation and experience. Think of LinkedIn as an advertisement for your personal brand. The more endorsements, content, connections, and articles you have on LinkedIn, the larger your brand equity will grow.
3) Engage in consistent communication
The thing about real estate is, it’s not an “out-of-sight, out-of-mind” business. Just because you purchased a property and hired a contracting company to renovate it, doesn’t mean you shouldn’t go check up on it every week. Same thing goes for real estate investors looking to rent property. Just because you placed your tenants, doesn’t mean you shouldn’t maintain a consistent communication with them. Not being responsive with your tenants can lead to a disastrous lawsuit. We recommend using a third-party property manager that can provide excellent service at an affordable cost. Even you’re out on vacation, an efficient property manager can take care of all the communication with tenants for you.
Consistent communication is key to the success of any business undertaking.
4) Financial records matter
For some, finances are a breeze. For others, it can be a headache. Maintaining up-to-date financial records will save you hours in the future when you scale your business, pay taxes, or need to make any predictive models. There are tons of real estate software companies out there who can get your financial records straightened out. But is this really needed? Well in theory, the four core aspects of business are marketing, operations, human resources, and finance. Skipping one of these can breakdown your business in the long run. Onerent has written a free buy and hold blueprint in crafting a strategic tax plan that we recommend all real estate investors follow. To really impress a banker, you can use financial records to email them a professional loan package during your initial phone conversation.
5) Ignore emotional attachments
We all know the homeowner who get’s emotionally attached to their home. They had put hours of blood, sweat, and tears into the renovation and probably even saw their first kid grow up in it. When buying and selling property, take the emotional value out of the transaction. Property owners say all the time “my property is the best out of any on my street.” That might be true, but a veteran real estate investor will take the emotional bias out of their property and evaluate it based on comparable. When the numbers say another property is a better investment, but something has to go for you to make it, the most successful investors will let it go and take on the better-performing situation.
6) Make money when you buy
Every smart retailer knows profit is made when you buy rather than when you sell. The best real estate investors know that the better the price you get going into a deal, the more you will cash out with a higher return on investment. This relieves you from building equity, or waiting for the economy to grow to see your property return a profit. Following these major habits every real estate investor has will give you a mindset into how you can become a more diverse and knowledgeable professional.
Onerent is a rental leasing and management service for the modern owner and renter, managing over 1,000 properties across the San Francisco Bay Area, and Greater Seattle.