If you have found any type of success in producing a profit from investing in real estate, you know first hand that becoming a successful real estate investor can be difficult.
Just for the record, when we speak of successful real estate investing, I am not talking talking about putting the traditional 25% down on a retail property and producing a 4-6% return.
What I am talking about is finding and working with motivated sellers to find deeply discounted properties while establishing a qualified team all while using creative means to finance your projects and producing outstanding returns on your money (or other peoples money ; ) )
The process of starting a real estate investing business can be emotionally draining. Success will not come over night and planning and perseverance are a most.
In this business, you will have many ups and downs, good months and bad months but if you keep working and implement a plan.. success will come... and this success will typically snowball.
This is a continued journey of education and learning from your mistakes while making minor adjustments to your plan to find what works in your market.
Real estate Investing is currently a hot topic and when you are involved in the game, you will see that there will be several investment businesses who enter your market and abruptly fade away. This is due to the fact that there are several different variables involved in any one deal, deals are hard to find and financing can be even harder.
"Every investment property you will purchase will come with headaches, to be successful, you need a plan to limit and handle these issues"
The key to this game is creating systems to deal with the challenges that inevitably arise day in and day out in our business.
There will be points in your business when you may feel like there is no chance that you will succeed. You may not find your first deal for 6 months or you may have several deals fall through in the first months of operation.
This business is just like any other business, in order for you to succeed you need to work hard and persevere through tough times. If this was an easy business, everyone would be successful doing it, but only the strong survive.
We do want to make one thing clear. When you make mistakes, you have to make adjustments. Do not continue doing the same thing over and over again and keep producing the same results. I believe they call that insanity lol.
Create a plan, execute that plan and make some iterations to find success within that plan.
In order to combat the inevitable challenges within your real estate investing business, lets discuss 6 simple ways to survive any issues that may arise within your business.
The 6 Ways To Avoid Real Estate Investing's Challenges
1) Commitment
This word has several different meanings when it comes to business. There will be several sacrifices that you will need to make in order to reach your goals. When carrying out your plan there will be a big time commitment and also a money commitment. Instead of watching television or going out on a Friday night, you may need to commit yourself to putting together a marketing piece and licking envelopes for a direct mail campaign. Or instead of going to that party on Saturday night, may be you stay inside and commit yourself to a book to get a better understanding of the business that you are trying to create. No matter what business you find yourself working in, in order to be successful, there will be sacrifice and a commitment needed to succeed.
2) Planning
With every business comes a business and operations plan. Now I am not telling you that you need to create some long drawn out plan as if you were trying to execute a start up in silicon valley but you need to document your goals and know how you are going to get there. I would suggest that you create an operations manual discussing all your departments and how they work (systems). This will be something that you continue to iterate on and make better, but will always be something you can fall back on.
3) Consistency
This business requires a consistent effort and implementation of your plan. You need to be consistently marketing and searching for your next motivated seller. You need to be consistently looking for private money lenders or financing. You need to be consistently looking to add to your team and make it better. You need to be consistently educating yourself on your specific niche and market conditions.
You get the point. The more consistent you are and the more involved you are, the less room you will have to make a mistake. Stay consistent with all of your efforts and the reap the benefits for your time.
4) Patience
To me this is may be the most important virtue of any newbie real estate investor. I see it time and time again. A new investor will enter the market with these huge expectations after just intending a "guru" seminar or reading a success story on the internet and within in a few months they quite. I can't say this enough,this is not a get rich quick business. However, if you do put in the time to educate yourself and stay consistent with implementing your plan, you will find success, you will make money and it is only going to get easier as you continue to network and build your brand.
5) Education
Knowledge is the new money. Without education and knowledge, you are nothing. I suggest that before you enter the market and take the plunge, you educate yourself on real estate, your niche and business in general. There are so many different free resources available to us on the internet such as:
podcasts
blogs
videos
books
forums
etc.
This is where you need to commit your time to reap the benefits later in life. Do not enter the market without a good understanding of how the game works. This is why so many newbie investors only last a few months. They have failed to educate themselves on real estate investing and they have one issue that arises, they do not know how to handle it and it pushes them right out. Don't be like some of these newbie investors. Educate yourself on your business and begin reaching the goals you have always dreamed of.
6) Take Calculated Risks
Every investment that you make in your life will contain some amount of risk. Some more than others, but they all have some type of risk. In this business, you need to calculate and limit your risk. This all comes back to your education and understanding how to properly analyze a deal. Do not make the numbers work for the deal, make sure the deal produces numbers that work. Do not force the situation. In this business, we have to buy right to make our money. Know your numbers going in and make your profit during and on the way out. You should have a very good understanding of exactly what you will make on every investment that you take on. Create specific systems to evaluate your deals and only move forward when those numbers fit your designated criteria.
Wrapping Up | 6 Ways To Survive Real Estate Investing's Inevitable Challenges
Well there you have it - these 6 tips will give you a good idea of how you can be successful in real estate and avoid the pitfalls that many others have made. Remember that this is not an easy business to be successful at but if you do find a way to succeed you have the opportunity to change your families lives. Continue pushing forward, continue to tweak your plan and never stop believing that you will make it. Work smart and work hard and no matter what endeavor you take on you will find success.
In the comment section below, let us know what type of challenges you face or have faced in your business and what you have done to limit these pitfalls.
Happy Investing!
HS Property Funds
Funds to Help, Problems to Solve
(315)516-8023
www.hspropertyfunds.com