Last time we covered the first five items on the Top Ten list of essential elements for being successful at real estate investing. Now, let’s cover the other five items that, though last, are not least. First however, I want to point out there are elements on this list that are tangible and intangible, elements that can be learned and some that come naturally. So, self-evaluation is a necessary part of your process. It is also the reason why having a team is so important.
- Market cycles: Money is made in every market cycle. Understanding the cycles and knowing what action to take in a cycle is a key to success in real estate investing. Monthly, OTA Real Estate publishes an analysis of over 50 markets and current market cycles. We publish this information in MyOTA for OTA Real Estate Student, providing action indicators as well. Another good resource for local market trends is Local Market Assessments published by The National Association of Realtors.
- Create a Great Team: ‘Alone we can do so little, together we can do so much.’ Helen Keller. Real Estate is all about the team and having the right people behind you. The great thing about team members is that they can be independent contractors, not employees. Who are some of the key members you should have on your team? Real Estate Broker/Agent, Title Agent, Real Estate Attorney and Accountant, just to name a few.
- Focus: ‘Clarity affords focus.’ Thomas Leonard. The first thing to focus on is which exit strategies you’ll be using, for example: rentals, wholesaling or fix and flipping. Once you’ve made that determination, the next thing to focus on is finding a property? There are many ways of finding properties, from using a professional such as a broker (your team member), to one of the many off market strategies taught at OTA Real Estate. As a new investor, pick a primary strategy and let that be your focus. As with anything in life, the more we focus our time and attention the better the results.
- Understanding the Tax Game: Many people feel that the tax rules are too difficult and not made for the average guy, that is understandable. Under the current tax rules there are advantages for the average guy owning real estate. A tax expert is an important team member. They can help you correctly position your investment to take the maximum advantage of the tax laws.
- Be Open to New Ideas: In our family we have a moto, ‘be a life-long learner’. In today’s fast paced world, it is more important than ever to keep abreast of what’s new and changing. Here are several good resources for current information and to help you learn what’s new in the world of Real Estate investing: Lessons from the Pros, National Association Real Estate Investors and OTA Real Estate.
I hope this has enlightened you as you move forward in your real estate investing.
Diana D. Hill – Diana@OTARealEstate.com