By Sophie K
Buying and selling properties for profit is a fantastic way to drive personal income (not to mention the rental returns you generate along the way). But before you become a millionaire master investor, you’ll need to develop a few crucial abilities. These skills are pretty much universal, and apply whether you are investing in an apartment in thriving Vietnam’s Da Nang, or looking for a property for sale in Dubai.
In this industry, preparation is everything. People will know right away if you are trying to fake your way to proficiency. Let’s dive into five key skills you’ll need to succeed as a property investor.
Become a People Person
Relationships are everything is the property investment world. Put on a smile and grab a stack of business cards because in order build these partnerships, networking is going to become a valuable skill. Your income will depend greatly on the quality of associates you are able to attract. Some types of individuals you’ll need to woo are realtors, property managers, repair contractors, as well as other prospective buyers and sellers themselves. As you build trust, they may start to prefer you over other investors. You’ll get the call instead when they have a great deal to share. A place to start in honing your people skills is by reading the classic How to Win Friends and Influence People by Dale Carnegie. It’s been a best seller for decades, for good reason.
Be a Diligent Researcher
Whether you intend to flip a house quickly or hold a property for long-term growth, you’ll need to do extensive in-depth research. One of the very first things you’ll want to do is a thorough investigation of real estate markets to determine which ones make the most sense for your investment. At various times, some markets may be stagnated, while others are in the midst of a boom (or even better, on the cusp of one). Ask pointed questions such as, “are property values trending up or down?” and, “what are people looking for most in this neighborhood?” Another thing to carefully search out is which repair contractors you’d trust in the likely event your property will need some work done. Expect to put in some serious time at the keyboard.
Get Passionate About Risk Mitigation
Once you’ve made a few connections and have some well-researched properties in your sights, you’re probably feeling ready to pull the trigger. But before you do, you’ll want to consider how exactly you’ll mitigate your risk. If the deal goes sour or there is a legal case brought against you, the offended party could legally clear out your entire bank account. To prevent this, it’s important to make your investments under the title of an LLC or corporation. This will provide a layer of protection between any claimant and your personal assets. Additionally, it’s never a good idea to make investments based on “a good feeling.” When it comes time to make a decision, be ready to back it up with solid facts and figures. No one will finance “a good feeling” anyhow.
Be a Negotiator
The lower your costs, the higher your profits will be. In the property investment world, your negotiation skills will play a large role in what chunk your costs take out of the pie. Since you’re already working on developing a keen personability, this skill shouldn’t be much of a stretch. Good negotiation is all about finding a compromise so your personal likeability plays a major role in how successful you will be. It helps if you’ve already begun to cultivate a great working relationship well before making the “big ask.” Additionally, getting to the absolute lowest number possible is not worth ruining a great relationship. Try not to be such a shark that you take advantage. Next time you come around for a favor, the burned party will most likely send you packing.
Learn to Outsource
Even after you’ve taken each and every one of these steps and feel like the wizard property investing, don’t try to do everything yourself. For one, you’re probably not an expert in every field, and it’s not efficient for you to become one. This is why you should certainly bring in professionals to guide, help, and mentor you along the way. A lawyer would advise you how to properly incorporate your activities, an accountant can answer all tax questions, and hire a real plumber, please.
Your tenants will not be amused if the toilet spontaneously floods the house. Lastly, it would be wise to seek a mentor to show you how they were able to have success as an investor. This way, you don’t have to make any of the mistakes that they already made.
Property investment is a learned ability that will take years of experience to fully refine, but you will never be without helpful resources. There are many wonderful books on the topic, such as The ABCs of Real Estate Investing by Ken McElroy to mine for info. Also available are a number of online courses, podcasts, and YouTube videos on the subject that you can access for free. Before launching into your own business, take some time to really self-evaluate your readiness to begin the journey.