FREE Seminar: Author Site:
Original article:
The 5 Most Important Skills You Need to Be A Good Real Estate Investor
Hey everyone, today I want to talk a bit about the skills that you need to be a competent or a good real estate investor. I think there are about five major skills and are not skills that you think you would need.
The first one is marketing.
You need to be able to market to bring deals to you.
What I mean by that is you need to go out and you need to do the types of general marketing. You're going to be doing online marketing. You're going to be marketing by networking. That's a big part of it. You're going to be going out and talking and meeting with people. Building up relationships.
Marketing for deal- finding is a lot different than marketing for opt-ins social media marketing.
The second skill that you're going to need is deal-finding.
Once you start marketing, you're going to have to start looking at deals.
And when I say looking at deals, I don't mean going out and driving to properties and looking at properties. I'm talking about getting a property on your desk. This is mostly what I call a paper analysis and evaluating what that deal looks like. What you would do is you'd do the comps on it, you do the financials on it, you'd look at comparables. And so really once you find a deal or once you've done your analysis and you think you've got a deal, then you would go out and you'd make an offer. So that's all part of deal-finding.
The third skill is getting into what I call sales.
And by sales, I'm talking about the different ways that you can talk to people, the different sales techniques that you're going to deploy or that you're going to use when you're working with people that have properties that they may want to give them up to your people. Owners, sellers, motivated sellers, people that own property.
A part of that is the sales techniques, whether it's the assumptive sale.
There's a whole bunch of different sales techniques, so you really must get good at sales.
The fourth skill that you're going to need is negotiation
And when I say negotiating, I'm talking about going back and forth with them on what they're looking for, what you're willing to offer. It's not always about getting the best offer for you.
Negotiation should be about getting the best offer for both of you
What's going to happen is you're going to get a deal from this person that you've been talking to - this owner, this seller, and from that, you're going to hopefully strike a good deal where you actually help this person. And by doing that, that person's going to then refer you or at least talk good about you. And you can maybe use that as a referral tech or a referral or a testimonial in your future marketing. So, it comes around full circle.
The fifth attribute of the fifth skill that you're going to need is management.
Most people really ignore management. I know I did from the very start. I was really bad at management, even though I'm a project manager by trade. You must be good at project management. And by management I'm talking about managing the project, if it's a fix and flip, for example, making sure that you have the right people there to do the job. Making sure that all the activities, all the work's being done on a timely manager. Making sure that your general contractor is doing the work that needs to be done.
Making sure that these people are doing the work.
Even though you have a general contractor, you still have to manage the overall work.
The other type of management that you would do is property management. Meaning if you have a rental property, you have to take care of that property. You have to make sure that the rents are being collected. You have to make sure that the tenants in your property are taking good care of the property.
So these are five skills that you would need to be a good real estate investor. And notice I didn't say anything in there about the specific types of investments, whether it's fixed and flip, whether it's rentals, whether it's lease options or whether it's bird-dogging. Those are the more technical activities. And those are really the easy part about real estate investing.
Okay. Thanks very much.
0 Comments