Should real estate investors brace themselves for another crash? Be careful of what the media is pumping out and verify everything you read or hear. Titles such as “Epic Real Estate Crash” or “Another Recession around the Corner” are definitely attention grabbers—especially if you invest in real estate. Many of us are still reeling from the blow dealt by the great recession almost a decade ago.
These attention-grabbing titles serve a purpose: fear sells. Because we real estate investors have our eyes and ears on market fluctuation, we pay close attention to any heads-up information we perceive might save us from the kinds of losses many investors experienced earlier this century.
There’s nothing wrong with paying attention. Being informed is one of the central aspects of a prudent business strategy. The key is knowing when and what to believe and by whom. Some of the media buzz leads to book or product marketing and it’s up to us to be educated well enough to know how to discern.
As real estate investors, knowledge is our number one tool. The more we know—about investment, about the economy, about tactics—the more successful we’ll be. Those who jump in without understanding the business often fail on their first deals. Fewer investors hit the panic button when they know what to look for and how to run their businesses.
In order to Keep Calm and Run Your Investment Business, the following procedures must be securely in place.
There’s nothing wrong with paying attention. Being informed is one of the central aspects of a prudent business strategy. The key is knowing when and what to believe and by whom.
Stick to Your Plan
It goes without saying an educated real estate investor knows he or she must begin with a plan. That makes sense in any business. This might seem like a challenge, especially for one who’s never run a business before. But the hard part is not as much creating a plan, as it is following it. A wise investor knows his or her success depends on one thing: sticking with the plan.
Look for Signs
The investment world views real estate as among the safer investments. It’s definitely less volatile than the stock market, and there are many benefits to real estate investment—as long as you look for signs. Your training will help you know what to look for and how to distinguish the messages.
Build a Solid Team
Your investment business is yours, but relying on the support of a team is vital to maintaining balance. Depending on which branch of the real estate investment business you’re focused on, your team members may vary.
If you flip properties, you will be best served by having a list of preferred buyers. When buying As-Is, a quality contractor is an essential team member. A solid title company and trustworthy inspection company are also vital. In any aspect of the business, be sure to have access to an attorney.
There is more detailed information for each of the above procedures so be sure to keep learning. That is the only way to keep your finger on the pulse of the real estate investment industry. Continue to read the paper and listen to the news, but do so with an educated mind and never act before you research thoroughly.