63.7% of Americans own their own home, leaving a lot of investment properties on the table. If you're new to real estate investing, every move counts, no matter how many properties there are.
There's a lot to learn and that learning doesn't stop when you close your first deal. Education starts with successful real estate investors.
Established investors have paid their dues and made their mistakes. Now, they're sharing their tips so the next generation of investors can find success too.
4 Things to Learn From Successful Real Estate Investors
You know that there are a lot of investments properties out there. But did you know more than two million people have real estate licenses? So why do so few real estate businesses make it to the four-year mark?
The market itself, overspending, and a poor marketing campaign all play a part. Some fall into the trap of the famous real estate investors they see on TV. But there are four keys to having a successful real estate investment business...
1. Have a Plan
If you're serious about becoming a real estate investor, you must treat it as a business. Create a business plan that details your short and long-term goals. This will help you stay organized and on task.
Set a budget so you know how much you can spend on marketing materials, starting and maintaining a website, and ongoing licensing and certifications.
Understand the costs involved with investing. Research what goes into rehabbing properties and how much capital you need to be a landlord.
2. Know Your Market
Don't spread yourself out too think in the beginning. Start small and get to know neighborhoods in your area. Look at recent comps and analyze them.
Is a new school getting built soon? What about new shopping plazas? Who lives in this neighborhood?
You won't know everything about an area but there's no reason why you shouldn't try!
3. Build a Network
Successful real estate investors have solid networks. You can build yours by attending conventions. Reach out online to local investor groups.
Find a mentor who will show you the ropes. People with knowledge want to share that knowledge with others. Align yourself with reputable business people in your area.
Form relationships by your honesty and integrity. You may want a business partner down the road and your network is where you'll find one. Be an investor people want to partner with and you will grow your business.
4. Prepare to Work Hard
Real estate investing isn't for the faint of heart. It takes around the clock effort seven days a week in the beginning.
There's market research, learning about contracts and deals, and marketing your business. That doesn't stop when you close on your first deal but it will get easier.
And if you don't close a deal in the first month, don't get discouraged and don't give up. Your hard work and preparation will pay off.
Get the Most Out of Your Investment
At Clockwork Property Management, we help investors get the most out of their rental homes. We build relationships, not only portfolios.
We give you one-on-one attention so you can become one of the countless successful real estate investors we've helped over the years.