Real Deal REInvestor Network

10 Habits Of Highly Effective Real Estate Investors
by Jean Folger, Investopedia

Real estate has long been regarded as a sound investment. Wholesaling and property management of commercial and residential property are just a few of the ways investors can profit from real estate, but it takes a little savvy to become successful in this competitive arena. While certain universities do offer coursework and programs that specifically benefit real estate investors, such as the Johns Hopkins Carey Business School’s Master of Science in Real Estate, a degree is not necessarily a prerequisite to profitable real estate investing. Whether an investor has a degree or not, there are certain characteristics that top real estate investors commonly possess. (From caves to condos, we look at how Homosapiens have hunted for homes over the years. For further reading, check out No Longer Nomads: The History Of Real Estate.)

Treat Investments as Businesses

It is important for real estate investors to approach their real estate activities as a business in order to establish and achieve short- and long-term goals. A business plan allows real estate investors to not only identify objectives, but also determine a viable course of action towards their attainment. A business plan also allows investors to visualize the big picture, which helps maintain focus on the goals rather than on any minor setback. Real estate investing can be complicated and demanding, and a solid plan can keep investors organized and on task.

Know Their Markets

Effective real estate investors acquire an in-depth knowledge of their selected market(s). The more an investor understands a particular market, the more qualified he or she will be to make sound business decisions. Keeping abreast of current trends, including any changes in consumer spending habits, mortgage rates and the unemployment rate, to name a few, enables savvy real estate investors to acknowledge current conditions, and plan for the future. Being familiar with specific markets allows investors to predict when trends are going to change, creating potentially beneficial opportunities for the prepared investor.

Maintain High Ethical Standards

Realtors are bound to act according to a code of ethics and standards of practice policy, and real estate agents are held to each state's real estate commission rules and standards. Real estate investors, however, unless they are associated with membership-based organizations, are not usually required to maintain a particular degree of ethics in their business practices, as long as they operate within the boundaries of the law. Even though it would be easy to take advantage of this situation, most successful real estate investors, and especially those who remain in the business for the long haul, maintain high ethical standards. Since real estate investing involves actively working with people, an investor's reputation is likely to be far reaching. In the case of an investor lacking in ethics, the consequences can be damaging. Effective real estate investors know it is better to conduct fair business, rather than seeing what they can get away with.

Develop a Focus or Niche

Because there are so many ways to invest in real estate, it is important for investors to develop a focus in order to gain the depth of knowledge essential to becoming successful. This involves learning everything about a certain type of investment - whether it is wholesaling or commercial real estate - and becoming confident in that arena. Taking the time to develop this level of understanding is integral to the long-term success of the investor. Once a particular market is mastered, the investor can move on to additional areas using the same in-depth approach. Savvy investors know that it is better to do one thing well than five things poorly.

Strive to be Good Customer Service Representatives

Referrals generate a sizable portion of a real estate investor's business, so it is critical that investors treat others with respect. This includes business partners, associates, clients, renters and anyone with whom the investor has a business relationship. Effective real estate investors are good customer service representatives by paying attention to detail, listening and responding to complaints and concerns, and representing their business in a positive and professional manner.

Stay Educated

As with any business, it is imperative to stay up to date with the laws, regulations, terminology and trends that form the basis of the real estate investor's business. Keeping current does require additional work, but it can be viewed as an investment in the future of the business. Investors who fall behind risk not only losing momentum in their businesses, but also legal ramifications if laws are ignored or broken. When it pertains to the law, ignorance is no excuse. Successful real estate investors take the time and make the effort to stay educated, adapting to any regulatory changes or economic trends.

Understand the Risks

Those choosing to invest in the stock or futures markets are inundated with myriad warnings regarding the inherent risks involved in investing. Numerous agencies, such as the Commodity Futures Trading Commission, require disclaimers to warn potential market participants about the possibility of loss of capital. While much of this is legalese, it has made it clear to people that investing in the stock or futures markets is risky; meaning, one can lose a lot of money. Greenhorn real estate investors, however, are more likely to be saturated with advertisements claiming just the opposite - that it is easy to make money in real estate. Prudent real estate investors understand the risks associated with the business - not only in terms of real estate deals, but also the legal implications involved - and adjust their businesses to reduce any risks.

Invest in a Reputable Accountant

Taxes comprise a significant portion of a real estate investor's yearly expenses. Understanding current tax laws can be complicated and take time away from the business at hand. Sharp real estate investors retain the services of a qualified, reputable accountant to handle the business's books. The costs associated with the accountant can be negligible when compared to the savings a professional can bring to the business.

Find Help When They Need It

Real estate investing is complicated and requires a great deal of expertise to engage profitably in the business. Learning the business and the legal procedures is challenging to someone attempting to do things on their own. Effective real estate investors often attribute part of their success to others - whether a mentor, lawyer, accountant or supportive friend. Rather than risk time and money solving a difficult problem on their own, successful real estate investors know it is worth the additional costs (in terms of money and ego) to find help when they need it and embrace other peoples’ expertise. (Don't let a slow real estate market drag you down - steer clear of these pitfalls. To learn more, see 5 Mistakes Real Estate Investors Should Avoid.)

Build a Network

A network can provide important support and create opportunities to a new or experienced real estate investor. This group of associates can be comprised of a well-chosen mentor, business partners, clients or a non-profit organization whose interest is in real estate. A network allows investors to challenge and support one another, and can aid significantly in advancing one's career through shared knowledge and new opportunities. Because much of real estate investing relies on experiential-based learning, rather than on reading a book, for instance, savvy real estate investors understand the importance of building a network.

Conclusion

Despite abundant advertisements claiming that real estate investing is an easy way to wealth, it is in fact a challenging business requiring expertise, planning and focus. In addition, because the business revolves around people, investors benefit in the long run by operating with integrity and by showing respect to associates and clients. Tough it may be relatively simple to enjoy short-lived profits, developing a viable real estate investing business that can last for the long-term requires additional skill and effort. Whether focusing on apartment buildings or commercial property, highly effective real estate investors share these 10 essential habits. (Owning property isn't always easy, but there are plenty of perks.)

This past weekend I had the opportunity to meet Roger Salam and hear him speak at the Millionaire Speaker Camp.  Salam is an author, speaker, and master mind entrepreneur, who is unique in his approach to life and his multiple business enterprises, including real estate investing.  Interestingly enough he started his presentation with a focus on The Seven Habits of Highly Successful People by Steven Covey, a long-time number one best-selling business book.  Perhaps you’ve read the book.  If not, it is not only worth the read but is worth inculcating into your life in a conscious way. 

 

Salam’s question to the audience was “What are the ‘Seven Habits?”. Most of the audience had read the book but no one could name all of the habits.  The next question was ‘How can you integrate these proven key points into your life if you aren’t aware of them on a daily basis?’.  Salam stated that “you must live it to own it”.

 

What is it that you must live to own?  What are the habits that will transform your life?

‘The Seven Habits’ include:

 

1. Be proactive
2. Begin with the end in mind
3. Time management – First things first
4. Think win-win
5. Seek first to understand and then be understood
6. Synergize
7. Sharpen the Saw – Balance and self renewal

 

I believe that when reading the book one is able to take a personal inventory and benchmark where they are in regards to the ‘habits’. However, my focus right this minute isn’t on the habits per se, but on forming a response to Salam’s question of “Who can name the Seven Habits?” Having read the book years ago I had to ponder my inability to pull up the “Seven”.  My conclusion is that after reading the book and looking at the habits, I saw that I was already operating in the “Seven Habits”.  Congratulations, maybe. Maybe, because I can’t say that there haven’t been lapses now and then in all of the areas since I read the book. As I reflect, had I taken a more serious look at posting the “Seven” and reviewing them as a part of my daily planning, I could have avoided some of the lapses experienced and moved forward even more stealth-like in my personal and business life.  Do over time!  I have now  made a list of the “Seven Habits” and will be posting them by my computer and in my planner for daily review.   I’m also grabbing the  book off my shelf for further review.  I need to make these habits real, alive, so that they can fully serve me.

 

My question to you, is how real are the many real estate investing courses you have read and  participated in?  Do you own the material?  Have you taken action, even if it wasn’t the right action or it didn’t quite get you where you wanted to go?  Just a couple of weeks ago I picked up one of my original Robert Allen manuals (from his 40 lb box – LOL) and scanned the pages.  Somehow, it all seemed so basic to me at this point, but it wasn’t when I started the investing journey.  I believe that I have lived a portion of  the content to the degree that I can now own it.  That doesn’t mean that I have graduated from the real estate investing university in the sky.  There are more courses to take along with the need for a lot more hands-on experience.  Knowledge is best accommodated and assimilated when it is applied.

 

Real estate investing is a vast territory. And if you haven’t already done so, I’d encourage you to pick a place to start, garner the information needed for one investing strategy (congruent with the market environment), implement what the books and courses say to do, ask lots of questions, develop and review your plans (yes, this requires a clear plan of action) and then take massive action with a constant eye to measuring your success.  For those already in the game, where are you today?  Are you on target?  The rules have changed and seem to shift daily based on lenders tactics, the economy, the online community available, and changes in local through federal regulations.  Are you on top of your game?

 

Whether new or seasoned, I invite you to post your action steps where you can see them every day, right beside the ‘Seven Habits’ should you see the value in following a proven success plan.  Find successful investors in the field and learn from them, directly or indirectly through observation.  REIA’s are an asset and provide education, potential mentors and networking opportunities.  A lone wolf may succeed, but a good team will surpass that metric.  Study your territory; know that farm inside out. If you are working virtually, be sure to do extra due diligence. Make sure the “trust” part of ‘know, like and trust’ is verified.  Become part of a master mind or accountability group.  Do it and do it and do it, until you own the strategy.  Then rinse and recycle to the next strategy.  

 

Being conscious of what you have learned and taking strategic planned action on that knowledge is crucial to your success.  Consider breaking the habit of read - shelf - read - shelf all your shelf-help books and materials.  So maybe it’s time to read, or revisit, the Seven Habits of Highly Successful People, along with identifying solid information and approaches to achieving your investing strategy.  Then decide to “own the habits” and/or “own the strategies and plans” through daily review and implementation.  Doing this WILL make a difference in your life and business.  I certainly will be doing this. "You must live it to own it!"   And, the next time that Roger Salam offers a financial reward for anyone who can name the Seven Habits of Highly Successful People, I’ll be ready.  Will you?  

 

To those who continue to struggle or just cant seem to break thru the variety of obstacles encountered daily, it is time to quit sabotaging yourself.  That's right, self sabotage is the primary reason many fail to achieve even the slightest success.  Take a look in the mirror, if you do not like what you see,  it is "high" time you realize that you are the only one who has the power to change it.  The following provided by the founders of Real Deal (cherished mentors & friends) has served me well.  Perhaps it can put some pep in your step :

GET OUT OF YOUR OWN WAY

Be careful what you ask for, you just might get it.  
Your words, your dreams, and your thoughts have power to create conditions in your life .

What you speak about, you can bring about.  If you keep saying you can't stand your job, you might just lose your job.

If you keep saying you can't stand your body, Your body can become sick!

If you keep saying you can't stand your car, Your car could be stolen or just stop operating.

If  you keep saying you're always broke, guess what" You'll always be BROKE.

If you keep saying you can't trust a man or woman, You willalways find someone in your life to hurt and betray you.

If you keep saying can't find a job,  you will remain  unemployed   

If you keep saying you can't find someone to love you or believe in you, Your very thoghts will attract more experiences to confirm your beliefs.

Turn your thoughts and conversations around to be more positive and Power packed with faith, hope, love and action.

Don't be afraid to believe that you can have What you want and deserve.

Watch your Thoughts, they become words.
Watch your Words, they become actions.
Watch your Actions, they become habits.
Watch your Habits, they become character.
Watch your Character, for it becomes your DESTINY.

GET OUT OF YOUR OWN WAY!

author unknown 
       

9 Millionaire Habits

 

A tale of two investors:

Two new investors begin their real estate careers. They get the same education. Same mentors. Same opportunities. One of them goes on to create great success and wealth while the other remains flat broke.

What made the difference?

Success in real estate investing is much more than knowing how to complete a deal. It takes the mindset and habits of a professional investor. Here are some of them that you must put into practice: 

1.       Develop a long-term perspective. Plan 3~5 years in the future. Don't let ups and downs shake your commitment. Expect a crisis every 2~3 months with problems sprinkled liberally throughout. How do you respond to difficulty? Challenges reveal your true character and how you respond to them is the only thing you can control.

2.       Practice self-discipline. Do what you should do when you should do it even if you don't feel like it. Delay gratification for long-term benefit--successful people do the things they don't like to do when failures don't do them. Remember: work 5 years like other people are afraid to, so you can live the rest of your life like other people only dream of.

3.       Work with a goal in mind. Don't work for work's sake. What would you do with your time if money wasn't an issue? Spend time with family? Do charitable work? Travel the world? Your answer to this question will tell you what you really want to do with your life. Let these life goals drive you to succeed. Hard work isn't that hard when it will get you to your goals quickly.

4.       Develop a strong work ethic. This is the 40+ formula: you work 40 hours a week for survival and everything after that for success--every hour over 40 is an investment in your future (the average millionaire works 59 hours a week). Don't waste your work time. Make each hour count.

5.       Do first things first. Make a to-do list. Set priorities on each activity, focus on the highest priority first, and work on it till it is done. Ask yourself "what is the best use of my time right now?" and then do it. This is the habit of high performance.

6.       Dedicate yourself to lifelong learning. To earn more you must learn more. Study real estate 30~60 minutes a day. Read books, listen to audio programs while driving or doing mindless work, and take courses and seminars.

7.       Dedicate yourself to serving others. Success is determined by doing more than what is expected--there are never any traffic jams on the extra mile. You are paid in exact proportion to the value you bring to society. If you want to make more money, create more value for the people you serve.

8.       Get around the right people. Your network = your net worth. You will tend to be like the people you spend time around. Build a network of quality people--find those you want to be like, get involved, help those people, be a go-giver instead of a go-getter. If you want to soar with the eagles, you can't hang out with the turkeys!

9.       Never consider the possibility of failure. Failure makes you stronger--fear of failure is what will hold you back. Take calculated risks in the direction of your goals. What is the worst that could happen? The worst is usually not that bad. Make a habit of doing the things you fear. Act boldly, and the fear will leave you. Back everything you do with persistence and determination. Resolve today to never give up. Success is predictable.

The reason I exercise daily is to not only look and feel good (or make Shiela happy… lol). But I do it to improve my mood.

Physical activity stimulates many chemicals in your brain that make you fell happier, more relaxed, boost confidence, relieves stress and gives you more energy to go out and find more real estate deals (lol, no seriously.)

 

Exercise also helps to combat many diseases such as high blood pressure and cholesterol. Exercise can also help build your immune system, so you won’t get as many colds. Hard to talk to buyers and sellers or network with a cold.

 

Exercise must be combined with eating healthy for maximum results one must eat a balanced diet while exercising. Fruits, vegetables, whole grains and most importantly I think, protein from lean sources. I also recommend (remember I am not a health physician) a low-carb diet.

The best exercise programs tend to have one part cardio training and one part strength training to get the best results. For example running on a treadmill 30 minutes, three times a week and weight lifting three times a week.

For many years now I have followed a program of weightlifting 5 days a week and doing fast passed cardio 10 minutes a day, six days a week. I believe that this program has helped me through the financial stress I have had the past couple years and shows my ability to maintain focus, drive, dedication and commitment.

 

Rick Strubel, Millionaire in Training, MMMChallenge.com

 

http://www.realdealcommunity.com/members/profile/475/Rick Strubel, Millionaire in Training - MMM Challenge.com