So you’ve decided to start investing in real estate. Congratulations. You’ve chosen one of the most complicated (but potentially most rewarding) investment fields.
Getting started in real estate investment can be a complicated proposition. There’s legalities to think about as well as hefty financial obligations. It’s not an endeavor for the faint of heart.
But for those exceptional individuals who can take the heat, real estate investment can be a gold mine.
So, what property investment strategies do you need to know before getting started?
Honestly, that’s too long an answer for any one blog post. Instead, I’m going to give you a few key property investment strategies to help you get started.
What these six tips will do is help you lay a solid foundation on which to build your real estate empire.
The 6 Basic Property Investment Strategies
A lot of you are probably reading this blog hoping for specific tips for the best properties and deals, and don’t worry, that’ll come eventually.
But today, we’ve got to lay the groundwork. You can buy the most amazing property out there, but if you haven’t done the legwork to back it up, the whole thing will crumble.
So what do you need to do to build a solid foundation?
1. Keep Looking Ahead
The real estate market isn’t static. Nor is it even consistent from location to location.
For instance, at the writing of this post, in May 2017, the housing market in Madison, WI is exploding. We’re talking million dollar homes selling in two days, twenty offers on starter homes, tens of thousands above asking price.
Contrast that with the nation at large, which is seeing a slight slowdown in terms of residential real estate.
Will those two trends continue? Maybe. Maybe not.
Part of your job as a real estate investor is to keep an eye on the markets and past trends and make predictions about what is coming.
You can’t do this with 100% accuracy, of course, but you’ll find that the longer you stay in the business, the easier it is to predict what is coming next and adjust to it.
There are no property investment strategies that will help you more than this one.
Keep in mind, too, that your goals have to mirror the market. They can’t be static.
As the markets change, your goals will have to change too. Learn to be fluid as you look at the future of real estate so that you are ready to take the opportunities that come at you and make wise choices about where to invest your capital.
This doesn’t mean that you should have no goals at all and simply invest your money wherever the spirit leads you.
Establish goals each year, but be willing to change your property investment strategies if you find they are no longer serving you.
2. Maintain an Online Presence
This really should go without saying. In real estate investing, you are your brand, and your brand is nothing without the power of the Internet behind it.
People are using the Internet to do everything from watch cat videos to deciding who to work with when it comes to investing.
You must use this to your advantage.
Pick a social media site or two. Facebook and Twitter are old standbys, although Instagram works great for real estate investing as well, and Linkedin is great for networking with other professionals.
Whatever you decide to use, maintain an active presence on that platform. Learn to use the platform effectively and make sure you keep your audience (which is just fancy social media talk for client base) engaged.
Beyond social media, build your website, your blog, and your email list. This online presence is going to make your business more searchable, driving traffic and a potential client base.
This is one of those property investment strategies that sounds ridiculous until you actually do it. And don’t get me wrong, there will be times when you are updating your Facebook account and thinking “How can this be helping my business?”
The truth is though, every update, every tweet is getting your name in front of an audience. It’s building name recognition and helping build that client base.
3. Maintain an Offline Presence
Yea, you still have to do this. Social media is a vital part of marketing, but real estate is still a largely face-to-face game.
Make sure you are getting out and networking in person, attending investment events and getting to know your peers in the field. Not just peers, either, but investors and potential clients as well.
Again, this is building brand recognition and getting your name in front of people who matter.
And in a business that is moving huge amounts of money around, you want to be well-connected. That social currency opens doors that might otherwise be closed and helps you achieve your goals in the investment world.
An important note here: Your online and offline presence are separate entities, but your brand has to remain consistent. All the property investment strategies in the world are useless is you can’t present a consistent brand to your client base.
Chances are, people who meet you in person will take a look at your social media accounts. Who you are in person should mirror who you are online. Always stay on-brand when you are on the job.
4. Develop a Buying Strategy
When you’re talking about the kind of capital it takes to invest in real estate, the last thing you want is to be throwing money at every property that comes your way.
Unless that’s your strategy. It’s not a very good one, but hey, more power to you.
The point here is that you have to have property investment strategies that are unique to your business.
When we’re talking property investment strategies, this is what we’re talking about. As you are getting your feet wet in the business, you have to think hard about how you’ll determine what is worth your time and money, and what isn’t.
Once you have a general idea, make sure you have your plan written down as a legitimate policy. This makes it part of your brand and holds you to your own standards.
Buying property is a waiting game a lot of the time. Having a well-thought-out strategy is going to give you the patience to wait during those times when you really want to jump on something but wisdom tells you to wait it out.
It will also give you the confidence to know when it’s time to throw caution to the wind a bit and make a quick, but lucrative, buy.
5. Work on Your Personality
I mean, I’m sure your personality is fine.
But real estate is a face-to-face industry. It’s vital to identify the weak points in your public persona so that you can present the best possible face to your clients and peers.
Even if you are an introvert — actually, especially if you are an introvert — you have to be ready to cultivate the kind of personality it takes to win in real estate.
You’re going to be meeting people constantly, shaking a lot of hands, smiling at a lot of people, and making a lot of small talk.
You have to get good at those things. It was Maya Angelou who said that “They won’t remember what you said, they’ll remember how you made them feel”.
That’s true here.
Every word you say is unlikely to be remembered by each person you meet, but confidence, a friendly demeanor, and ambitious attitude will make a mark. People will remember ‘that guy’ at the party.
Which is exactly what you want.
6. Continue Growing
Remember what we said about the real estate market not being static?
Well, you shouldn’t be either. A property investment career is not meant to be maintained, but constantly fed and nourished, so that it will continue to grow.
The market changes constantly, audiences change, and the world changes. Processes of doing business will change, and you have to be able to keep up.
Attending conferences and continuing your education will give you an edge in this business and prepare you to meet the challenges of building a successful real estate investing business.
Use networking to your advantage here. There is always someone who has been in the business longer than you. You can learn from the successes (and failures) of these real estate veterans.
Never, ever assume you’ve arrived or that you’ve figured out everything there is to know. The market is in constant flux, and you have to change and grow with it.
Getting into the real estate investment business is daunting. It is far from a simple industry, and it is fraught with risk.
For those who are up for the challenge though, it can be a lucrative path.
Build yourself a solid foundation using these property investment strategies, and you will be on your way to a building a successful real estate empire.
For more information on property investment strategies and how you can build your business, Contact us today!