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The construction of a substantial property inheritance does not happen by chance, it takes work. But how did these investors become successful? Is it because they are smarter than others? Or is it just because they are luckier than others? No. It is because they have developed essential qualities that allow them to implement their strategy. Below are seven qualities of great property investors:
1. Good money management skills
Most successful property investors are good money managers. They have been able to put money aside in order to invest. Once they were able to generate money, they continued to put money aside to increase their wealth little by little. You must keep in mind that wealth is not created from one day to the next — it is built. The process can take more or less time, depending on the situation. If you want to become a successful real estate investor, you need to develop this skill.
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2. Good analytical skills
The ability to analyze starts with the analysis of the property in question. The successful property investors are able to recognize a good deal, because they have developed this analytical ability. This starts with the analysis of the advertisement and goes all the way to the analysis of the interlocutors they are dealing with in order to adapt their message according to the typical profile of the person with whom they exchange. Great property investors do not base their decisions on emotions, which are often misleading. On the contrary, their decisions are always well thought out. The ability to analyze develops in the course of the experience, but a real estate coach can teach you the basics so that you don’t start from scratch.
3. Laser focus
Following a clear strategy and a precise plan for your investments helps to avoid getting lost. You should know exactly what you want from your investment in order to move in the right direction. On the contrary, if you don’t do that, you take the risk of investing in assets which will not suit you, and you also risk moving away from your initial goals. The possession of a laser focus allows you to be focused on your goals. The laser is used as opposed to a torch light. A torch light illuminates a large area, whereas a laser stays focused on a specific point. It is this particular skill that the high efficiency property investors have developed. With a laser focus, no obstacle can keep you away from your goal.
4. The ability to develop a solid network
This quality is necessary, because a real estate business cannot be done alone. You will have to work with other professionals, such as real estate agents, notaries, bailiffs, lawyers, investors and bankers. In order to develop your network, it is necessary to maintain the relationships and to get involved in some way with the problems of your interlocutor. Providing value to your contact can make all the difference.
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5. Being a good negotiator
To make a good deal, you need to know how to negotiate. The process of negotiation takes place on many levels and is not always necessarily about money. It is possible to negotiate the advantages in kind or to negotiate the conditions. The major real estate investors know that a deal is concluded at the time of the purchase, and that the purchase price which the seller offers often leaves room for some negotiations. They will also have to negotiate with the bank or a financial organization. They know that empathy and the ability to listen to each other’s needs are the keys for good negotiation.
6. Long-term thinking
In this field, it is necessary to use long-term thinking. The real estate investment is an investment that commits you for several years. Therefore, it is necessary to analyze the situation carefully before making a purchase. To do so, you must ask yourself some fundamental questions. Does the property really correspond to your objectives? Is the type of rental chosen in line with your principles? Does the property in question comply with the current standards? If not, have you planned the budget which is necessary to restore this property? The answers to those different questions will help you to determine if it is a good deal or not.
7. Knowing how to be patient
Finding a good deal can take several months. Patience and perseverance are two essential qualities in this field. Although this may seem obvious, in practice, it is more difficult to apply. Real estate is not for people who give up easily. Most of the novices set a goal which they must achieve by a specific time, and they give up after a few months when they haven’t found a profitable enough property. Or, on the contrary, they jump on the first property they see, fearing that they will not find another one. Great property investors know how to temper this pressure. They act at the right time, and they don’t rush in when the investment isn’t worth it.
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What if you don’t have these qualities? Recognizing your weaknesses constitutes a big step towards change. There are many skills that you can acquire through training, such as analytical, negotiation and management skills. On the other hand, the qualities that come under the heading of “soft skills” can be developed with expertise. You have the ability to partner with people who possess these qualities and can help you.