8 Qualities of a Good Real Estate Investor
Like every other great business venture, real estate comes with its risks and rewards, highs and lows.
Only those who the grit and tenacity end up thriving. The rest, let’s just say their dreams of cashing out in big bucks don’t always come to reality.
A good real estate investor knows to adopt certain techniques and policies to get the best results on sales and buying of properties.
If you wish to become an expert real estate investor, you will definitely want to read this article to the very end.
See below for some things the greatest real estate investors know and do, and the qualities they possess.
1. THEY HAVE THE ABILITY TO SPOT A PROFITABLE LOCATION FROM OTHERS
It takes great experience and intelligence to know how lucrative a location will become in the nearest future.
A good real estate investor knows how to differentiate the areas with the high potential of developing over the next few years, from those with low property value appreciation rates.
To be able to spot a good location, thorough background checks and research to help one make better-informed decisions. Another way to spot a good location is taking into consideration the history of the property and its prospects. Does the area get flooded regularly? Is easily affected by issues like traffic congestion? Is it in an area prone to socio-political issues? Researching is very important to every good real estate investor as it helps them pick out the best spots to invest in.
2. HE OR SHE UNDERSTANDS HOW TO GO ABOUT PRICING:
A good real estate investor knows how to compare the prices in one area to another so as to give him/her an idea of what is mostly on demand and the future possibilities of such a property.
It is most important to take into consideration the price range and type of property which has accrued the most profit over the years. This particular quality helps one decide on the target audience the property will most be suited to and the appreciation rate of such a property. In most cases, a property with a high pricing appreciates faster than one with very low pricing. This however, is not set in stone as we clearly see in the Lekki/Epe land boom.
3. A GOOD REAL ESTATE INVESTOR KNOWS THE COST OF RENOVATIONS AND HOW IT AFFECTS MONETARY RETURNS:
Any good real estate investor automatically knows that the value of a property may not necessarily increase even if its renovated.
Knowing which property to renovate, which to partially renovate, and which not to, will save you a lot of money and stress. Many people in a bid to increase the chances of selling off a property, carry out major renovations on a building only to be disappointed when the value doesn’t really rise to their expectation.
Yes, it is also true that to make the sale of certain properties quicker, some renovations might need to be made. It, however, largely depends on the taste of the buyers and what they want in general.
One might not always get back every amount spent on renovations but it is important to maintain a balance between the two.
4. HE/SHE HAS TOP NEGOTIATION SKILLS:
Every great real estate investor knows that what separates the successful ones from the mediocre is their ability to negotiate. In cases when they wish to buy, even if the money is very readily available, there is always a chance that the property can go for a lower price. A good real estate investor also knows that one should not always be in a haste to sell off a property as better deals may be on the way. It is also very important to be patient with every buyer who indicates interest and an investor understands that the property won’t always be sold at the price hoped for. You win some. You wing others.
5. BACK UP YOUR BARGAIN WITH CONFIDENCE:
Like every major business person, a good real estate investor possesses great confidence and can talk about his property to anyone. Given, integrity is very important and in cases where there is something wrong with the building, or property if you will have a problem talking about it when you wish to resell, then it is best not to buy it in the first place.
Confidence in selling any property is ultimate as it gives the buyer peace of mind and makes it easier to close deals.
Good marketing is very important in the business of real estate and to properly execute this, confidence is key.
6. COMMITMENT TO THE CORE:
There are no shortcuts in real estate.
Yes, real estate is not a business that matures overnight, however, a good real estate investor knows that the level of commitment should not dampen no matter how much time passes.
It is also important to familiarize oneself with the proper terms so that when dealing with agents and buyers you properly convey yourself as an authority in the business.
Commitment can also involve maintaining an online presence with the audience irrespective of whether immediate sales are being made or not.
7. PROPER DOCUMENTATION IS MOST IMPORTANT EVERY TIME. A GOOD REAL ESTATE INVESTOR DOES NOT JOKE WITH THIS:
There are scammers everywhere!
Proper documentation is about the most important thing every real estate investor should first be aware of before anything else.
No matter how casual the agreement is, it is important to put it into writing and keep documents as proof as situations may arise in the future which will require them.
Many people have been known to take advantage of investors and agents who did not pay attention to details. if you do not pay attention to such details. There are a number of companies who help with the necessary legal documents and agreements binding an investor to a client.
8. HAVE A LOOK AT DIFFERENT ALTERNATIVE:
A good real estate investor will take a look at multiple options and not just settle for the first property selections that are made available.
It is not just your taste, but the taste of the future residents that should guide this and as a result, decisions have to be made based on one opinion.
True, an investor should be wary of setting oneself up for analysis paralysis by going through an excessively long line of properties. One however, has to be thorough and give oneself a wide range of options.
In no time, you can begin your journey to becoming a great real estate investor who will soon start raking in millions from business deals.