If you’re an aspiring real estate investor, building good habits will be the core foundation to your success.
From the moment you rise to the time you go to bed, outlining your day will make you more efficient and more effective at your job.
Here is a game plan to implementing habits to develop to put you on your path to achieve your real estate investment goals.
HAVING A SCHEDULE
Having a daily routine of planned activities will help you get into a rhythm.
Waking up at the same time, going to the gym daily and even planning your meals are great for building structure.
Setting a schedule will help you clear your mind, giving you laser focus.
The side benefit of such a structure is you will not be worrying about whether you forgot to do something.
There are many scheduling, CRM and organization tools you can install on your phone and computer, making it easier than ever to stay organized.
These tools will send you reminder messages so you don’t miss an important meeting or appointment.
FIND A NICHE
There is an ocean of property types and investment strategies out there.
The world is a complicated place, finding a niche helps simplify life.
Pick one type of property or strategy to invest in; this will give you an identity and make you an expert in the niche you choose.
For example, if you work in rehabbing single family homes in a certain area, over time you will become an expert in this industry and will know what to look for in regards to the local market.
Developing strong relationships with property brokers, contractors and lenders will be beneficial to your success.
For example, a great relationship with a property broker may result in access to insider pocket listings unavailable on the MLS.
Go with what you know! Try to stay away from projects outside your niche as this can become time consuming and bring on unnecessary risk.
SETTINGS GOALS
Great real estate investors set short and long term goals.
For instance, a long term goal might be turning over 1 fix and flip every month or earning $200K profit per year.
A short term goal might be going to the gym every 2 days for a month.
Humans thrive with goals, having a target to aim for will help you orientate yourself towards a brighter future and help you avoid complacency.
PERSEVERE THROUGH DOWN MARKETS
Real estate markets, like all markets, are cyclical.
Like a surfer, learn to ride the highs as well as the lows.
Position yourself to withstand an unexpected downturn in the real estate market as it is inevitable.
And don’t be discouraged if you have a few bad years, stay positive and find ways to persevere.
GO TO SCHOOL
Getting higher education is a valuable tool. Becoming more knowledgeable could open up various job opportunities throughout the real estate industry.
People with degrees often get promoted and have higher incomes than those without.
According to APLU.org, high school grads earn 62% of what a college graduate earns.
DIVERSIFY
Rule No. 1: Never lose money.
Rule No. 2: Never forget rule No. 1.
– Warren Buffet
The number one rule of investing is preservation of capital. The easiest way to achieve this is through diversification.
Don’t put all your eggs in one basket and consider partnerships if necessary to diversify into multiple projects.
This will balance out your portfolio in the case one of your assets is underperforming.
PATIENCE
Patience is a virtue. Real estate markets have been around for eons and will always be cyclical.
What is valuable today is worthless tomorrow. Avoid buying at the top of the market, and try getting into up-and-coming neighborhoods, or buying when you think a recession is at the bottom.
Therefore, don’t chase deals. Have cash reserves ready for a drop in the market, in order to capitalize on bargain deals.
WORK SMARTER NOT HARDER
Know your priorities and limitations. Be efficient and do one thing well, outsource the tasks you struggle with.
Don’t scoff at the idea of getting some outside help. When blocked on something ask for feedback.
Not a web developer? Don’t try to build everything yourself. Trim the fat and focus on your money makers.
CREATE PASSIVE INCOME
Creating passive income helps you leverage your time and is one of the most powerful income generating strategies in the world.
If you have a solid rental business setup and organized, you will have a lot more time to focus on developing other businesses or living a more fulfilling life.
HIRE THE RIGHT TEAM
Paying employees a little more than competitors can be beneficial in the long run.
Hiring competent people to make difficult decisions on your behalf will not only benefit your business but also give you more time to do the things you love.
Additionally, turnover in any business can be costly due to the training time for new employees, so it’s best to find great employees and stick with them.
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