5. Invest Blog

Top 5 Skills You Need to be a Good Real Estate Investor

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Marketing

Unless you can get people to come to your business no one is going to buy. So if you have a property you want to sell, if you have people you want to attract or a property you want to rent all that comes down to good marketing. For example: you have a rental property it’s vacant, you want to go out and get a good tenant in there you need good marketing. Same thing for Rent To Own if you are trying to attract the right person for a Rent To Own product.

Really at the end of it’s about when you sell the property. Now you can say that is up to the Realtor and that’s fine so maybe you can farm some of this stuff out but you need to know who is and who isn’t a good Realtor because they have to be able to do the marketing for you. So marketing is very important and don’t just say well they are going to do it and not know what there are doing.

I have seen properties sit on the market for a long time because these people that you are relaying on to do the marketing for you aren’t doing a very good job. We bring in our team and put in the right Realtor in place and get the right ads in place. In marketing, there is online marketing so you want a good online presence you want an offline presence to the degree that you should have.

In today’s advertising there isn’t a lot of print, radio or TV advertising. Most of it is on social media, webpages, Facebook, twitter and especially YouTube in the property section and of course Instagram and Pinterest are becoming very popular for putting up your listing your marketing your product. So marketing, the number one skill, I think you need to become a good Real Estate Investor.

Sales

Everyone is in sale whether you realize it or not. If you are trying to sell someone to rent your property, buy your property or trying to sell someone to sell your property at a good price. Even if you are doing renovations you are trying to sell a tradesperson to come and work for you at a price so you are negotiating contracts. All that requires good sales techniques. And sales techniques is associated with negotiating, with talking to people with presenting your offers with presenting your deals.

It’s really about building that rapport and communication between two people. It’s all about sales. Everyone is in sales even if you are not in Real Estate Investing. You go in and try and sell people on your deals, if you are working full time, you are trying to sell yourself if you are up for a promotion. Trying to sell your child to do something or your spouse. Sales is a big part of everyone’s life not just Real Estate Investing.

Creative Financing

Now you might say you have lots of money and you don’t need to be creative with your money. The more creative you are the more leverage you can get with your money. I have seen some people have a couple of hundred thousand dollars and invest in some properties and then they get an ok return on that. But if you know how to be creative and how to leverage joint ventures, if you know how to get vendors to do what’s called vendor take back, if you know how to work with banks and be creative that really helps on your return. You can turn that 10-15% return into maybe a 20-40% return because you now have your money leveraged better.

Financial Management

The worst thing is if you have a bunch of properties in place and you have no idea how they are performing. You are not doing your books on a regular basis, you are not monitoring the accounting practicing, and you don’t even know if your properties are cash flowing. You just have all these bills coming in and you have all these expenses that you have to pay and you have certain rents and maybe some of these rents aren’t even being collected.

Maybe you have to do follow up or hire someone like a Property Management company to go in and collect those rents. But, until you do good Financial Management, good bookkeeping and good awareness of what you are doing with your business, you will never going to be able to take your business to the next step. You will just be tripping and falling all over yourself when you are trying to manage those properties for yourself.

Customer Service

No matter how things seem you have to keep you cool. These people are your clients. Whether they are your tenants, buyers, sellers even your Real Estate agent. All those people that help you out on a day to day you have good customer relation. That means you have to treat them with respect, not just ignoring what they have to say and dealing with them and issues in a professional matter.

Do not get mad and treat them bad because you may feel good if you do lose your cool and feel like you won the deal but you have not won the race. These people are going to try to avoid and ignore and not deal with you and will go to elsewhere and deal with someone that they like and are appreciated.

Customer relations is very important especially when it comes to referrals. In my case, we do a lot of Rent To Own, and those people that we put in either as an Investor or tenant buyers when they are done they go and tell other people.

I have one Investor that is on his fourth deal with me. He loves it. We keep treating him well, answer all his questions, pay all his bills on time, and make sure his property is always rented. Same on the tenant buyer side, if the tenant buyer ends up buying the home they are so excited they tell everyone that they were able to reach their dream of owning a house by using Innovalty Investment Ltd. which is my Investment Company.

So those are the 5 things that I think you should really focus on when you look at becoming a good Real Estate Investor.

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