Ever wondered why some people make it in real estate while others don’t? They just aren’t making as much money as they thought and seem perpetually stressed? Meanwhile, the best investors always seem to be ahead of the curve — knowing what properties will pay off and what’s not worth their time. And they seem to do it without being overly stressed. But how do they do it?
The most successful real estate investors have habits that set them apart. So, if you’ve been wondering how to increase your success in real estate investing, here are five habits to help you get there.
Five Habits of Successful Real Estate Investors
1. They know their numbers.
Investors with the best-performing portfolios know their figures. Then they make decisions based on number sense, not emotional ties. They don’t go into any possible purchase without projected earnings and set goals. They know what they’re looking for, and they won’t even consider an investment that doesn’t meet their criteria.
Plus, they know market rental rates. Before they buy a property, they plan their listing price point so it’ll lease quickly. They’ve done the math, and they trust the numbers.
Want to know which numbers to focus on? Check out this article: Your Real Estate Cash Flow Should Be Protected at All Costs
2. They know how each deal fits into their overall investment goal.
You can know the numbers, but that’s not enough. Successful investors choose properties that contribute to their long-term goal. It’s about more than “Yeah, I want a rental property.” Instead, they’ve set an investment goal, and they eliminate purchases that don’t move them closer to it. Then they don’t waste time on investments that deter them from their target.
3. They aren’t emotional about their investments.
Investors can’t be emotional about their investment decisions. We were looking at two houses with a client a few years back. One was in a country club. The other was in a nice subdivision with an HOA, community pool, and park — and the potential for higher earnings. But our client chose the house in the country club, simply so he could have more status in what he owned. He was proud, not just to have a rental, but to have one in a country club. So he sacrificed performance.
The best investors don’t make that mistake. They let the numbers, not their emotions, guide their choices.
4. They have a high degree of integrity.
Successful investors always put their integrity first, even if it costs them in the short term. They come out on top in the long run too. If you’re doing what’s right, there’s nothing that’ll come back to bite you. Plus, you’ll get the peace of mind that comes with doing the right thing.
5. They stay laser-focused on what they do best and delegate the rest.
Your time is best spent on what you do best. Successful people know that, so top investors spend their time finding and putting together new deals. Then they let the property manager run their current rentals.
We had a client who didn’t get this a few years ago. We filed an eviction with a tenant who didn’t pay rent. Then the owner called us and told us to cancel the eviction because he was worried he wouldn’t be able to re-rent it. We’d managed the property for years and never had trouble filling a vacancy. But because of fear, he jumped in the middle of the process.
When the owner interrupts the property manager’s process, they make it more difficult for everyone. Now the tenant starts going directly to the owner anytime they've had a hard conversation from the manager or an enforcement of terms. If you, as an owner, jump in the way of the property manager, you’ll make their job harder and your property less profitable.
Successful investors build teams. They put people around them who can do what they do best — then trust them to do it.
These five traits are game changers. Maybe you need to focus a little less on emotional ties, focus more on the numbers, or find a property manager to run your rental while you focus on your strengths. Whatever it is, give it a try. Good habits make all the difference.