A lot of people want to become their own boss, and think real estate investing is easy to accomplish this goal. Even though real estate can provide some incredible opportunities, it is far from easy.
Real estate (houses, apartments, commercial properties, and land) can be really expensive. Most people don’t have the money to go out and buy a house. They need to borrow money, which can be a challenge if you want to buy an investment property. There are a lot of different strategies and amounts of money needed for each type of investment.
Many successful investors tend to have common traits. I believe these traits make someone more likely to be a successful real estate investor.
First of all, willingness to learn.
There is so much to know about real estate. You must set dedicated time to learn, and continue learning. Successful investors make the time to read, look at houses, and write out strategies.
Save your money.
Once you start to bring money in, keep putting it back into the investment to grow. There are strategies to invest with little to no money down, but it is a lot easier if you have money to start.
You need to make time to put into your business.
It takes time. The possibilities of it being easy and happening over time are very slim. Owning real estate can be passive, but it takes time to get there. Out of state investing may take up even more time. Take the time to find the best properties, property managers, contractors, lenders, deals, etc.
It is essential to take some risk.
I have bought properties in my career that I probably shouldn’t have. Meaning those houses did not turn out as i expected. Thankfully I have a lot more great deals than bad ones. Occasionally you lose money and sometimes you make money.
If you happen to lose money on your first deal, don’t give up. Many great investors lost money as well. Becoming a great real estate investor will not happen right away, it can take years and years.
Good at math.
Real estate is a numbers game. Whether you buy a rental, or house to flip you will need how much the house will make, or costs of repairs. You don’t have to have a math degree, but being able to do basic math is essential.
If you need someone to tell you when/how to work, this is not the right field for you. If you don’t have all these traits, don’t give up. I have seen these traits in many successful investors, and even some who never graduated high school and still have a real estate legacy.