Whether it’s through partnerships, funds, syndications, turn-keys, house-flipping, or something else – there’s a ton of ways to get involved with real estate. But there are still principles that apply to all the different real estate investment techniques.
Below are seven ways new real estate investors can find success:
1) Have a Target
One mistake investors make simply investing and hoping for a profit. They don’t have a long-term plan for the type of returns they’d like to see on their investment in a quarter, year, or decade. Before investing, the real estate investor should be sure to have projections for different time frames of the return they expect on their investment.
2) Review Reports
A reasonable investor always takes time to review monthly and quarterly reports – and then investigate anything that doesn’t seem right. Review reports should include the summary from whoever’s managing the investment, the profit or loss of each month, details of these profits or losses, a cash flow record, and rent or occupancy status if possible.
3) Be on Calls with Managers
An investor should make sure to listen carefully when investment or property managers are telling you what’s going on. They should be sure to keep detailed notes, as it’s impossible to remember everything that was gone over on the call. Lastly, a noted investor will pay attention to the projections to adjust accordingly.
4) Keep Track of Return on Investment
The whole point of an investment is to make a return. A sound investor stays up to date on the return and adjusts accordingly.
5) Asking Questions
If something doesn’t look right, a great investor isn’t afraid to speak up. Even professionals make mistakes sometimes. It’s important always to know what’s going on with the capital.
6) Be Consistent
A lot of real estate investors may see steady profits for a few months, and then stop checking in as often. This is a big mistake. A good real estate investor consistently checks in on her investments to make sure everything is in order.
7) Make Use of Technology
Technology has changed the real estate investment landscape. For example, Better Mortgage allows a potential investor to see what loan they’d qualify for in minutes. A great investor uses technology to make the best decisions.
The best real estate investors remain committed, consistent, and dedicated to their investments. By doing the seven things on this list, a new real estate investor can put themselves in a position to succeed.