For many, real estate investing is a short-term game. You get in, invest, make more money, and get out—pretty much like a sprint race.
However, those who are willing to ride the changing tides of the market and navigate their way through the cut-throat competition; for them, real estate investing is a more long-term opportunity. They view it as a marathon. Naturally, their gains and returns are also stronger and higher than their sprinting peers.
What type of real estate investor do you aspire to be: a sprinter or a marathon-runner?
Of course, like every good marathon runner, we’re sure you’ll be preparing yourself in advance for the big, long race, right?
If so, we believe you’ll find the following tips helpful in achieving your objectives. Integrate them into your business strategy if you haven’t already done so.
Master one sector at a time
Real estate investing is a diverse field with many facets.
Speaking of primary categories, there are residential, commercial and industrial property investment opportunities. Dissecting each primary investment category further, there are multiple other investment opportunities.
As a long-term real estate investor, your approach should be to perfect one investment category at a time. Once you’ve mastered one category, you can then move to the next. Step by step, you’ll eventually be able to build a well-rounded skill set and prime yourself with the required knowledge and experience to establish an impressive and profitable investment portfolio.
Focus on building a dependable team of experts
You’re committing to a long marathon, and there’s no way you can run this marathon alone. To be successful, you’ll need a team of helpers; team members on whom you can rely and depend.
Building a reliable team should be one of your top priorities when entering in the real estate investment business. Find professionals who are experts in their field. Gather experts who are likely to stick with you in the long run.
A well-balanced real estate investment team typically consists of:
- A contractor
- A lender
- A real estate investment advisor
- A certified public accountant
- A real estate attorney
Invest in building a strong relationship with your team members; it will allow you to retain them for longer.
Know your competition well
This is one of the most important tips to implement in your business strategy.
There are only few desirable investment opportunities in any given real estate sector. However, potential suitors are always aplenty.
To be able to succeed at the highest level, you must be aware of who is competing with you in the industry and in a particular investment sector. You should familiarize yourself with their strong and weak points. Using this knowledge, you must then come up with a plan to beat them. This is where your team can really help you, so the importance of having a good team again becomes prominent.
We wish you good luck for your future and we hope you go on to become a master marathon runner.
Harper Financial is your go-to real estate financing firm in Massachusetts. We offer a complete range of hard money loan products, including but not limited to, bridge loans, acquisition loans, blanket loans, and partnership buyout loans. Feel free to contact us for more details.