The 5 Most Important Pieces of Advice for Real Estate Investors
Networking and relationships are a large part of the real estate business, and as real estate investors, it’s easy to get influenced by the people around you. At every networking meeting or investment club you go to, you will most likely hear differing ways to run your business, and in some cases the advice is sound and can significantly change the way you do things.
However, most of the time, what works for someone else won’t necessarily work for you. As real estate investors, you must strike a balance between soaking in as much information and knowledge as possible and knowing what things to ignore. Keep reading to learn the five most important pieces of advice that will help you find and close deals successfully.
Balance Passion and Profit
In any business, one of the most common pieces of advice is to follow your passion, and while there is plenty of merit to this, you should heed this advice with caution. Having a passion for something is wonderful, but it may not always be what is best for your business. When following your passion, you need to make sure that you keep an eye on your bottom line. In a perfect world, you would find an area of the business that gives you the ability to do both, but in reality this isn’t always the case. If your passion leads your business to dead ends, you won’t be around very long because your business needs income and profits to survive. Remember that there is always time in the future to work on specific niches that you are passionate about, but until your business reaches a certain level, you need to balance your passions and profits.
Do One Great Thing
In the rush of excitement about your business, it’s easy to get sidetracked and dabble with new ideas every few weeks. There are constantly going to be people telling you that you need to switch things up if they aren’t working. However, the best advice is to focus on one thing, and to do that to the best of your ability. You should only consider changing things up if you have exhausted all of your options. Whether it’s a marketing plan or an area to invest in, pick one thing and do it well. If you give up and move on before you give your chosen item a fair chance, you will never know how things may turn out.
The common phrase “jack of all trades, master of none,” is a good saying to be aware of. This approach allows you to develop a brand, which helps people in your area instantly associate the nice with your name. Doing one thing well is always better than doing multiple things mediocre, and you will find it is far easier to gain contacts and increase your networking opportunities this way.
Work Smarter, Not Harder
Nearly every single business preaches the value of hard work, and of course hard work is important. However, hard work is not the end all and be all. In fact hard work without a clear vision can be a massive waste of time. As real estate investors, focus on working smarter, not harder. When you work smarter, you will be able to get the most out of your day and you won’t waste hour after hour working on unproductive tasks. Working smart may mean that you hire people to handle your most time consuming tasks, that you look at different approaches before starting a big project of that you simply listen to people who have real world experience in your niche. Whatever working smarter looks like for you, do it. You can work an exhausting 12-hour day, but it’s always better to work six productive ones.
Trust the Numbers
One of the oldest expressions in the real estate business is that numbers don’t lie. As you navigate the business, there will be many times when you come across a property or situation that looks like a great opportunity, but running the numbers tells a different story. Don’t listen to your gut and let your emotions take control of your business; trust the numbers instead. The numbers should be the primary component that guides each business decision that you make. There is a time and place to use your business instincts, but even then you want to keep your numbers your primary focus to achieve greater success.
Learn How to Say “No”
While it may be tempting to take on every single new opportunity that comes your way, it just isn’t possible. One of the most important qualities for anyone in business is having the ability to say “no.” You need to learn how to pick and choose your battles, and there are many times where saying no is easier said than done. Rather than focusing on short-term speculative situations, always look at the bigger picture because every business decision you make impacts another area. A seemingly good opportunity could get rid of other opportunities that come your way. Being able to walk away and say “no” is a sign of strength, not weakness and there are times in every business when you need to learn to do this.
Not every piece of advice you receive regarding your real estate business will be good. It’s important to always consider your business and to look at the numbers before listening to every suggestion that comes your way. By following the above five pieces of advice, you set yourself up for success.