Qualities of Top Real Estate Investors: What They are and Why They Work

It’s finally May. Spring is in full swing and summer is just around the corner! Mother’s Day is coming up, which means we get to thank and honor the special moms in our lives by telling them, “I would not be here without you!”

One Mother’s Day gift that seems never to go out of style is flowers. It makes sense, since the adage “April showers bring May flowers” has been around since the 1800s. For those of us who haven’t been around that long, however, there is much we can learn from other investors who have trod the path ahead of us. 

For the month of May, I would like to share some qualities and habits that are cultivated by top real estate investors:

Real Estate Investors Are Thinkers

Successful real estate investment begins with proper planning. We must take time to approach things from a business perspective, creating a plan that takes into account short and long term investment goals. Organization is key.

Investors must be knowledgeable about the market, keeping abreast of any changes or trends that could affect the investment. We should be able to predict those changing trends and use those opportunities. On the other side of that, we should be aware of the risks associated with investing and take those into account. Strategize to protect investments by reducing risk. True real estate investors know that “get rich quick” schemes are just that – schemes.

Lifelong learning is an integral focus of the successful investor. We must keep up with trends, laws, terminology and regulations as they change. Great investors are excellent at conscientious adaptation. 

Real Estate Investors Are Doers

Professionalism and honesty are top priorities. Great investors are fair and maintain high ethical standards. They are professional and respectful to fellow business partners, associates, renters, clients, and everyone else we come in contact with in a business sense. They are effective at building solid reputations that garner referrals.

Specialization is another side of investment that can offer fantastic rewards. In that respect, you focus on mastering a specific market in-depth before moving on to another area. It takes time, but building a niche is of utmost importance to gain long-term success. 

Real Estate Investors Are Willing Collaborators 

Wise investors know not to go it alone. They know that they can reap greater rewards by honoring the expertise of others. They take things seriously and know it’s better to ask for help than to attempt to solve a difficult issue on our own. 

Talented investors should know how to create the perfect team to bring their vision to life. For example, it may be better to outsource the financials rather than take precious time and energy away from investments to do it ourselves. This is where an excellent accountant comes into play. That said, investors do not sit in the background as the accountant manages all the heavy lifting. They play an active role in it while still allowing their accountant to do the job they excel at.

Bloom!

There is a lot that goes into Real Estate Investment, but the good news is that if you work to cultivate these habits, you will grow into a better investor. More than ever, you will be an investor who is a thinker and a doer, whose investments bloom into success over time.

Happy Mother’s Day!

A LAUGH OR TWO FOR GOOD MEASURE

HELPFUL LIFE HACK #2

WHY INVEST IN REAL ESTATE?

Forced Appreciation

Forced appreciation refers to the increase in the value of the real estate investment property due to the investor’s actions. This means that this type of appreciation is not influenced by the uncontrollable market forces. Rather, it is only the real estate investor who, through proactive engagement, can have an impact on the forced appreciation of an investment property. The property value equals the net operating income over the cap rate. Simply put, increasing the property value means having higher NOI. Therefore, there are two possible ways to make money using forced appreciation. These are, namely, increasing the rental income and decreasing the expenses of the real estate investment property.