There is no magic formula that guarantees success in the real estate world. What makes investing in real estate so great is that there are many different ways to go about it. One day you can be sitting at your desk wondering what to do with your life and the next you can be closing your first rehab deal. How to get to that point differs from one investor to the next. However, there are a handful of areas that will help you get to where you want to go. By focusing on a few core areas you will be able to accelerate your learning curve. Here are the top six areas of focus for any new real estate investor.
- Mindset. To be a successful real estate investor you need to have the right mindset. There is no guarantee that you will close ten deals your first year in the business. You need to be comfortable closing just a handful while learning the ropes. The natural tendency is to get frustrated and annoyed when things are slow. The most successful real estate investors fight through this urge. You need to have the mindset that no matter what happens you are going to continue to work as hard as you can. This can be much easier said than done at times. Your mindset changes the way people think about you and could impact your relationships. Everything starts by having the right frame of mind.
- Education. You are never going to know everything when you are just starting out. This is no excuse not to get going. As you begin in real estate you should seek knowledge wherever it presents itself. Every book you read, article you skim or person you talk to could completely change your perspective on the business. An area you were passionate about a few weeks ago may be something you avoid with more knowledge. The more you know about your business the more confident you become. Confidence leads to increased opportunity. Take time out every day to learn something new about your business.
- Attitude. What do you want out of the business? This is a very important question to ask yourself. Achieving whatever goals you have may not happen overnight. It is important maintain a positive attitude throughout the process. Nobody likes being around negative people. They don’t want to hear about the seller who wouldn’t budge or the attorney who may have dropped the ball. There are plenty of other real estate investors they would much rather work with. Conversely with the right attitude you will find yourself in front of other likeminded people. These people will inspire you to work as hard as possible. You don’t have to have education or success to have the right attitude.
- Communication. Once you get your business going it is important to convert leads to deals. What you will find is that how you communicate is critical. Start by learning how to talk to sellers. What you say and how you say it can make all the difference. You need to walk the line between salesperson and investor. Nobody likes to feel they are being sold. Yet, most sellers need a push to move forward. You can bridge this gap by putting yourself in their shoes and thinking as they do. These thoughts should come across in what you say and how you say it. Talking to sellers and people involved in a deal, may be an adjustment but is essential for your success.
- Lead Generation. Getting deals starts by generating leads. You can have all the education and resources in the world but you need to have leads to work on. Real estate offers plenty of different options to help get the ball rolling. You can start by focusing on one or tackle multiple sources at once. It truly doesn’t make a difference what you do as long as you do something. Social media, bandit signs, fsbos and driving for dollars all offer low cost alternatives. The real estate business is a numbers game. The more leads available the greater the chance you can turn those into actual deals.
- Good Team. Even though real estate is often done by individuals it takes a strong team to be successful. You need your real estate agent, contractor, attorney, mortgage broker and accountant all to play a part. By not having to micromanage your team you free up time to focus on more important areas. You should talk to as many different potential team members as possible. Treat them like you would anyone else applying for a job. These people will directly impact your business. They will also influence your reputation. A good team will make your work life as easy as it can be.
Starting out as a real estate investor can be an intimidating experience. Even if you think you know where you are going there will always be curveballs. Navigating these curveballs can mark or break your business. Instead of trying to master every niche start by focusing on these six areas. Every lead you receive and deal you close touches on most, if not all, of these areas. If you are solid here everything else you do will be easier.
