Real estate investments are considered safe, profitable and hassle-free. It requires no formal qualification and many believe that everything runs on gut instinct.
That being the case, experts believe that there are some qualities that characterize and consistently define successful investors in property. Listed below are five such qualities that we believe will help you make that informed decision and boost your fortunes:
i. Market knowledge: The first step towards becoming a successful investor in property is to acquire a reasonably thorough knowledge of the market - of current economic trends and demographic patterns, laws and regulations and future prospects.
ii. Find a niche: As real estate is a varied playing field - wholesaling, commercial and residential, etc. - it is important to choose niche areas and specialize in them by acquiring in-depth knowledge and expertise. It takes time to gain expertise, but stick to the grind as this forms a critical part of ensuring long-term success. Additionally, focusing on particular areas will also enable the investor to earn a certain reputation in the market.
iii. Customer focus: Referrals are the key to any successful business, and so it is with real estate investments. Therefore, it is essential that investors in this sector treat their clients and partners with genuine respect and absolute professionalism. Paying close attention to customer needs and aspirations is critical. So is responding to customer complaints in a sympathetic and pro-active manner.
iv. Evaluating risks: Any investment in real estate is inherently risky. But evaluating the risk knowledgeably, intelligently and objectively is the key to ensuring that more often than not you make the right decisions. Being well informed, and honing your instincts, is essential.
v. Expert view: As a professional, do not step back from engaging the services of other professionals when required. Whether it is a lawyer, an accountant or a tax consultant, when you think that some expert advice or knowledge is required, go for it; even if there is a cost involved. More likely than not, the cost incurred will be offset in the medium to long term - as your investment decision will be based on logic and knowledge, considerably reducing the factor of risk.