How to Play The USA Real Estate GameAugust 1, 2015
5 Traits of a Successful Real Estate Investor
Is there a parallel between sports and real estate investing? Mark Cuban states that ‘business is the ultimate sport”. Professional athletes constantly train, practice and prepare to be competitive. When “big league” status is achieved there is no backing down on the pursuit of greatness. There is an ever present risk of losing their starting position to a more prepared, faster and stronger contestant. The same is true in the real estate game. You can never take your eye off the ball.
Rule number one is that real estate investing must always be treated as a business. Businesses exist to earn a profit and grow. In both business and sport there is always something new to learn and new ways to sharpen your skills. Here are the five common traits that both professional athletes and profitable real estate investors share.
Hard work – No top athlete, executive, entrepreneur or real estate investor rose to the top of their game with out a lot of hard work. Behind the scenes in the property game you have to recruit and manage your team. You have to source, negotiate and purchase deals. Then you have to track and measure the performance of your assets and make the appropriate decisions to grow your portfolio. It takes dedication and focus to master anything in life. Real estate investors who are willing to work hard ultimately thrive.
Adaptable – You cannot account for every variability when coming up with a game plan. You can only plan based on you experience and research. However there will always be variables outside of your control. Quick reactions with fast, creative problem solving is a requirement for ongoing success as a USA real estate investor.
Perseverance – Some athletes only find their zone when the competition tests their capabilities. Obstacles that will test you exist in the business of real estate. The victorious investors always find a way to turn a set back into a win. Setbacks are temporary and the lessons that emerge are priceless. Quickly learn from mistakes and “play on”. Write this down, “pain is temporary and quitting lasts forever.”
Confidence – On the playing field or in life, confidence is the result of taking action repeatedly. You will never become a confident or competent investor if you do not take action and play the game. Confidence is forged by doing. Surround yourself with a team of professionals who possess knowledge and skills that you lack. These team members will support your decisions and help you grow.
Humility – No competitor will win every race, every game and they know that. In the business of real estate you have to take every precaution you can to position yourself for ongoing success. Over the long term you must win more than you lose. Investors take calculated risks. Without risk there is no reward. If you want to be safe, open a bank account. The humble old guys who have been playing the game forever will also share the lessons of their failures along with the thrills of victory.
The longer I’m in the property game and collaborate with other real estate entrepreneurs, the more I’m convinced it’s team sport. The ongoing success of any business venture is achieved through the efforts of team. The stronger the team, the bigger your real estate business will grow. Flexibility and recovering from setbacks is important, but it’s the investors who never, ever quit that will ultimately be the winners in the real estate game.