Dream Of Being A Real Estate Mogul? Here Are Some Tips.
/Many financial experts claim that owning real estate is a vital part of building wealth. While I do believe it is possible to build incredible wealth without real estate, there is a lot of appeal to owning property. My personal vision is to own commercial real estate and my fiancé has plans to own several residential properties.
If you are considering the real estate game as a part of your investment portfolio, or even be a real estate mogul, here are some things to consider to decide if it is truly something you wish to explore.
Unbridled Self Confidence
Real estate investors thrive on challenges and pressure. What unites them is a sense of unshakeable confidence. The sums of money might be enormous - sometimes it can be a $50 million deal- but that doesn’t faze them. They go into each deal, thinking about how the long-term benefits, not the momentary discomfort of uncertainty.
Self-confidence has another benefit in the world of real estate: it convinces investors to come along with you for the ride. If you believe that your investment ideas will work, you will radiate confidence and attract others. In response, they will be much more likely to hand over the money you need.
An Ability To See Potential In Every Building
Newbies in the real estate game often take a superficial view of property investment, looking solely at aesthetics instead of considering the potential.
Real estate moguls, by contrast, take a different approach.
When they look at a building, they strip back all the bells and whistles and evaluate it on the basic fundamentals. Is it in a good location? Does it provide enough space? Can it be altered to make it more marketable? Are the repair and maintenance costs low?
So long as there’s no significant structural damage, most moguls will consider pretty much any project. They know that fixing superficial damage and redoing the interiors is easy.
An Eye For Trends
Real estate moguls spend the majority of their time focusing on the merits of individual projects. But they also keep one eye on the broader market trends.
Events in the property market place can have a significant knock-on effect on decisions that they make at the individual level. A reduction in demand for brick-and-mortar stores in the wake of online retail, for instance, means that fewer investors are considering these properties. Similarly, an uptick in demand for city-center premium dwellings is shifting the focus of some moguls towards this end of the market.
Trends come and go in the real estate market all the time. But if you get ahead of them, you will reap rich rewards.
An Ability To Make Tough Decisions
Moguls know that the property market can be tough sometimes. When you rent out a residential unit to somebody, you take the risk that the occupant might not pay you. For that reason, anyone who invests in property must be prepared to use eviction services, unless the city has issued an eviction moratorium as many have done during the Covid-19 pandemic. While the vast majority of renters pay on time, some don’t. And when they fail to hand over the money, it puts you under financial strain. Where possible, moguls replace them as quickly as possible with people who can make ends meet.
You Are Great At Marketing
Marketing in real estate is just as much about selling yourself as it is the property. If you can convince investors and banks that you have the knowledge and the insight that it takes to make successful investments, you can often borrow much more money. People trust you to generate a return.
Creating a persona, therefore, is something that they spend a lot of time doing. Many will attempt to appear on TV and radio, and others will write and sell books to create a unique personal brand. But even if you don’t have access to these channels, you can still reach out via social media and YouTube. The sooner you begin the brand-building process, the better.
You Avoid Money Sinks
The first rule of investing is never to lose money. But all too often, novice real estate investors will plow capital into a property with no hope of making a decent return.
Moguls, on the other hand, always weigh up the costs of purchasing an asset against the expense of maintaining it. Sometimes it is worth the extra investment, but sometimes it isn’t.
You Have Determination
Finally, moguls also tend to have a lot of determination to see projects through to completion. Making things happen in the property market is challenging enough in the best of times. But being consistent over the long-term is even more difficult.
Being determined is about not being put off by a temporary downturn in the market. It is about playing the long game and waiting for the inevitable rewards.
