Lots of people try to create successful real estate investment businesses. Few make it long term. Few see real success from their business.
So what’s the difference between those who fail, and those who succeed?
That’s what I’m exploring in this article, guided by the help of some established investors. I asked a few investors running their own companies what makes someone successful. And here’s what they said…
Persevere, be adaptable, and keep learning.
There are a lot of reasons why you might fail in real estate. One of them is that you don’t persevere through the difficulties it brings.
This makes sense, because everyone experiences failure, in every business. So if you’re not willing to persevere, find solutions to problems, and keep working, you’re doomed from the start.
In fact, nobody walks into success without going through failure first. And that could mean anything from a temporary setback, to a deal falling through, or struggling to find leads.
Cassidy, a real estate investor who has made millions of dollars in real estate deals, and works as the owner of VOL Homes, is no exception. He’s experienced his fair share of setbacks, but insists, “the most important thing(s) to being a successful investor are… perseverance, adaptability, & [a willingness to keep learning]. A prospective investor only actually becomes an investor if he/she possesses this quality. My perseverance comes from pure stubbornness and the refusal to give up. Bad stuff, roadblocks, and challenges happen all the time in real estate investing. One must learn to overcome those obstacles. Landing quality deals consistently isn’t easy. One must adjust incessantly in order to realize some level of success. What worked yesterday may not work tomorrow. [Being willing to learn, constantly,] is what separates the big dogs from the sheep, and it is one’s best shot at longevity as an investor. It makes me shudder to see investors who refuse to learn new things, methods, and [new] ways of doing things. Learning requires making mistakes, wrong turns, goose eggs, etc. Some investors find something that works for a while and look no further. The question becomes, “When will that well run dry?” Investors who step off the learning bus inevitably fall by the wayside.”
Joe, owner of CoMax Properties agrees, “While I think that there is a combination of traits that helps someone to be a successful real estate investor, I believe that perseverance might be one of the most important traits. Perseverance is not giving up. It’s persistence and tenacity. Putting in the effort required to do something and keep doing it till the end, even if it’s hard. Real estate investors have to be able to weather the tough times that are inevitably going to happen with market cycles and survive to attack opportunity when the clouds start to clear.”
So the question isn’t if you’re going to experience a setback, or face failure in your business. You will. The question is, will you persevere through the difficulty, work at it, and find creative solutions? Are you willing to try new approaches, or learn new techniques to solve your problems?
Or are you going to give up when things get difficult?
Uriah, who runs a husband/wife investment company in Raleigh NC says, “Determination [is the most important factor to success]. Nobody is going to hold your hand through it. There has to be something more than money for the long term success of your business.”
When things get hard, and you’re tempted to quit, and you haven’t made the money you hoped, do you have something that drives you to keep persevering? It may be a love of real estate, or helping people out of tough situations. It may be the love of being able to transform communities or neighborhoods. But there should be something.
In addition to persevering, it’s incredibly important to be consistent.
David, who runs Philly Home Investor cites consistency as one of the top factors to experiencing success in real estate. “Most people lack [consistency],” he says, “they lack doing the small things day in and day out. Being successful means doing things that most people do not want to do. I would also add in honesty and doing the right thing no matter what. Keeping your word.” And Derik, who owns Metro Cash Offer, echoed the same sentiment that “staying focused and consistent,” are the most important things for investors to be successful.
Anyone who’s a fan of Gary Vee can tell you that one of his repeated teachings for entrepreneurs is the lesson of being patient, persevering, and being consistent. If you’re going to use SEO, or Instagram DMs as a method of marketing, be consistent. Do it every day, or every week/month depending on your abilities. The point is, keep doing it.
In other words, have your stuff in order, and then be transparent about it.
This tip comes from Phil, who runs Metro Home Buyers. “The most important thing to being a successful REI is to have a detailed plan and be transparent. People are able to tell those who are organized and honest from those who aren’t.”
In other words, after you get your systems and processes in order, and you have a plan, be honest, and transparent with homeowners. If you’ve got something to hide, they’ll probably see that in you.
Business is about building trust, and you’re going to have a hard time doing that if homeowners feel that you’re hiding things, won’t be transparent with your pricing or offers, or dodge simple questions.
So in addition to persevering through hardship and failure; continuing to learn and grow, and being consistent in the essentials, you’ve got to be transparent, honest, and obsessed with solving the pains of homeowners you’re serving. If you don’t, you probably won’t be successful.