HMW #125: 3 Essential Skills Every Real Estate Investor Must HaveOct 25, 2023
Read Time: 6.25 minutes
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Can anyone be a real estate investor? Yes. Can anyone be a successful real estate investor? Maybe. Your chances greatly improve if you master three essential, and thankfully learnable, skills.
Sure, you can buck convention and get lucky from time to time in real estate with no skills whatsoever, but we here at House Money Media like continued, long-term success across your real estate portfolio and we have narrowed that skillset to these top 3 must-haves to achieve all your wildest dreams.
Thank you for sharing your talents with me, but unfortunately that's not one of the skills that you need. Let's dig into what really makes an investor set up for success.
Skill 1: Being optimistic
Real estate investing can be like a roller coaster ride with its cycle of highs and lows. Understanding that buying and optimizing your portfolio during the lows means you are setting yourself up to have higher highs in the future. You want to be excited that chasing those higher highs and to get there you are going to have to think really positive until it happens.
The good news is that you can train your brain to be more optimistic. Steps include positive reframing of current pessimistic viewpoints, surrounding yourself with other optimists, journaling your thoughts, and acknowledging there are some things you just can't control.
And by doing this not only are you going to be more successful, studies show you'll have better health too. And we all know that means more time to collect that sweet, sweet, cash flow.
Congratulations?? I wouldn't necessarily call that a skill, but more of a genetic defect that results in a lot of tongue trauma while eating. Oh wait, this is a good time for me to work on my optimism with some positive reframing. [You know, practice what you preach, Alan.]
Congrats on this amazing genetic benefit! It's much easier for you to steal licks off stranger's ice cream cones and possibly achieve some incredible niche success on OnlyFans! [Wow, it's really not that hard to be optimistic, guys.]
Skill 2: Being persistent
I got a date with my now wife because I called her every 6 weeks on the dot to see if she had broken up with her boyfriend yet. It took about 4 months and I can say persistence paid off.
Same applies to real estate, especially persistence around:
- Reaching out to your sphere for off-market deals
- Documenting your goals, dreams, wins, and losses publicly on social media
- Evaluating deal after deal after deal until you find a sure-fire winner
- Contacting lender after lender after lender until you have one that likes your deal (or maybe just Jasmine)
- Tweaking, improving, and making daily incremental progress in regards to cash flow on your current portfolio
Nothing leads to success long longevity in the business. Everyone eventually looks like a genius (and lives like a millionaire) if you hold real estate long enough. And non-stop grit can get you to those levels quicker than you ever imagined.
Tips for improving your persistence include starting small, knowing your why, resting (not quitting), getting creative with the going gets tough, and finding enjoyment in the minutia. Like Comedian Steve Martin said about wanting to learn the banjo later in life, "I just wanted to be a guy that has played the banjo for 5 years, so figured I'd start as soon as possible." And now there is a Steve Martin Banjo Prize one can win. Not a bad result of persistence!
Wow, now I'm curious what your "why" is. Either way, that wall, or any wall, clearly can't hold your back from your dreams. You are well on your way!
Skill 3: Be long-term focused
Real estate is not get rich quick. It's get rich eventually. Do home fix-ups with long-term lasting impact, not band-aid after band-aid. Visualize where you and our portfolio will be in 10 years, not 10 days. Calculate your expected future equity and cash flow, not overly focusing on today's value. All these are a real estate investors' secret weapons.
Studies show to improve long-term focus you should write down your goals, celebrate small wins, and work on self-discipline and self-confidence. You are building a foundation of your real estate investments at the beginning and not only home inspectors admire a good foundation. Let's admire and look towards all the accomplishments you can achieve upon that early foundation.
You don't need to finish that thought. [Positive refrain, Alan.] Ok, you do indeed have a long-term view of things with this analogy. Let's just say you are getting the hang of it! And remember you didn't learn it from me.
So in short be consistent, optimistic, and build around your why. Do you know your why?
Great, and with just 3 skills you can change your dating life (maybe) and your financial life (definitely). Go and get it!
- Think positive by reframing the negative
- Being persistance and consistent are skills that can be mastered
- Short-term thinking has much lesser results than long-term thinking
- Mastering these three skills can set you for success in real estate and beyond