8 Real Estate Investor Habits You Need to Have

June 3, 2015

As a real estate investor your success depends on your habits. Positive habits breed positive results. From the beginning of your real estate investor career to the day you retire, following a set of best practices will keep your business successful. In this post I want to cover eight real estate investor habits and best practices that you need to have!

Form a Plan

A solid business plan is the first thing needed to get your real estate investor career off the ground. In order to know where you’re going, you need to have a map. Take the time to write out what you want to accomplish and the steps you need to take to get there. Always having a well thought out business plan will keep you on track and keep your real estate investor career successful.

Know Your Market

There is nothing more important to a real estate investor than knowing your market. You always need to understand who you are buying and selling to. You also need to understand the economy in which you are working on. Whether you operate in one city or multiple locations, always stay on top of what the local economy is doing. You may be getting results in a city with one business plan that will not work in a different city.

Master Your Target Market

As part of your business plan, figure out what market you want to attack. Whether it is probates, motivated sellers or foreclosures, figure out what market you want to target and do what it takes to master it. Every real estate investor wants to be the master of their craft. Take the time to master one particular skill or approach before attempting a different strategy. If you try to learn every real estate strategy at once, you’ll end up doing a lot of things halfway and putting way more stress on yourself than you need.

Promote a Referral Program

A referral program is a great way to have deals come to you. You, as a real estate investor, should always be looking for new ways to generate leads. Your time is valuable. Offering a referral program is a great way to take a load off of your back and get motivated sellers to call you. Offer a reward to contacts that you meet either verbally or on a referral card. Tell them to keep your eyes peeled for houses that fit your investment criteria. Having eyes all throughout the city or cities that you work can provide you with extra time to take advantage of other marketing strategies and opportunities.

Stay Educated

You have to stay ahead of the game. Always stick to your business plan and to the strategies that get you results. That being said, make time to learn and test out different marketing methods and ways to run your business. Don’t fall victim to “shiny object syndrome” and switch tactics every month. If you are going to test a new method make sure you have a 2-3 month test period to allow your new ideas to work. You have to innovate and get educated in order to stay on top of the real estate investor game.

Understand Risks

Be prepared for the unexpected. A successful real estate investor has to have a great business plan. That includes planning for unforeseen circumstances. Always expect the unexpected and plan for all of the “what ifs.” Have back up team members in case you end up with multiple properties that need work. Always make sure that you account for emergency repairs in your rehab budget. Understand that you have to take risks as a real estate investor, but with a solid game plan you can make those risks pay off!

Ask for Help

Don’t be afraid to ask for help. If there is one thing you need to be as a real estate investor, it’s sure. You need to take the time to make sure that you are making the right decisions. If you aren’t sure about how much repairs on a house will cost then get a contractor on site to help you. Do you need advice on what to do with a property? Call a mentor or contact somebody from a local REIA. Your resources as a real estate investor are nearly limitless.

Build a Network

Real estate is a relationship business. This means that you will constantly be building new relationships. The working network that you develop as a real estate investor is a valuable resource. It is how you obtain answers to questions, get work done and expand your business. Get in the habit including marketing with any mailing campaigns that you do. Hand out your business card every chance you get. Become a presence on social media. Join a local REIA and the Bigger Pockets website. These are all great ways to build up your real estate investor network.