Property Expert Nick Statman on Things Every Entrepreneur Needs To Know Before Investing In Real Estate- Entrepreneurs and small business owners are a very unique group of professionals. They are focused, goal-oriented, self-sufficient, innovative, creative, and independent. While there are a million different ways to be an entrepreneur, one thing is for sure: they’re always looking for the next adventure. If you think investing in property is your next adventure, here are five things you should know before getting started.
Keep Your Emotions In Check
If you’ve ever bought your own home, or even been shopping around for one, you know the process is equal parts exciting and overwhelming. Finding the perfect home that has the space and amenities you need can be an emotional process. But investing in property is different. It’s much less about the feelings and the emotions and more about the data and the numbers. You don’t have to fall in love with every property you buy, and it doesn’t necessarily need to line up with your personal preferences.
Affordability, potential to maximize your ROI, and income potential are the things you should be focused on. The process of buying property is the same whether you’re going to live in it or rent it out, but the filters through which you find property will be different as an investor.
A Business Plan Is The First Right Step
Every successful business starts with an intentional business plan, and property investing is no different. Before you start looking at properties or taking courses, it is important to write down your goals and the steps you plan to reach them. Are you aiming to buy a certain number of properties in the first six months? Or make a certain amount of money in a year? Sitting down to create a business plan will help you understand how much money you have, how much you need, and what your first step will be.
Be Patient and Persistent, But Not Pushy
Entrepreneurs don’t reach success by standing around and waiting for it to fall into their lap. Entrepreneurs are successful because they go out and get what they want. They don’t stop when they hear their first no, and they think outside of the box to reach their goals. These characteristics will come in handy as you invest in real estate, but it is important to balance your persistence with patience.
Always factor in the motivation of the seller before purchasing a property. If the seller is not motivated to sell, you’ll end up paying more than you planned. Don’t push. Be patient. If you have to cut corners or deviate significantly from your business plan to make a deal work, it’s probably not the right deal.
Start Small, Start Now
Entrepreneurs also know the power of education. They are readers, are constantly listening to informative podcasts, and surround themselves with people who know more about their industry than they do. And while continued education and research about the industry is critical to success, it can be easy to get tied down in the planning stages and never reach the action phases. Do all the research you need to do to feel confident about making your first investment, but don’t wait longer than you have to. Start with what you have now, even if it’s not exactly what you want for your future. Start with what you have and what you know and work from there.
Avoid Analysis Paralysis
Entrepreneurs pay close attention to details. They can see the small details that make up a smart investment, but they can also see the big picture. As you enter into the world of property investing, it is important to do your research but not get so caught up in the details that you look over the potential. Many new investors suffer from analysis paralysis, which is when they miss deals and opportunities because they are waiting for everything to line up perfectly. There’s no such thing as a perfect property, so avoid waiting around for it. As a successful entrepreneur, you’ve had plenty of practice in knowing when to wait and when to jump into something. Use those same strategies when investing in property.
If property investing looks like it’s your next big adventure, go for it! As an entrepreneur or small business owner, your experiences have prepared you for this next step. If you can make a plan, keep your emotions in check, and start with what you have, you’ll already be set up for success.