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July 16th 2019Real estate in Dubai

Traits Of A Successful Real Estate Investor

Real estate is said to have more millionaires than any other industry. With so many different ways to grow wealth investing in real estate, there are many opportunities for different people with skills and talents to be successful,  make money and improving their position in meaningful ways.

Tips Before Investing in Real Estate

This is a list of the traits that are found amongst most successful real estate investors.

1.Knowledge– Successful real estate investors always have more knowledge than others around them. Those with a large portfolio know more about the market cycles, and which things to watch out for in real estate. They most likely will recognize shifting markets before others and prepare themselves for the opportunities in the market. The very best never stop learning and real estate requires this too.

The areas which need more knowledge are as follows:

  • The ability to analyse a property for cash flow
  • The ability to recognize an under-valued property
  • Learning the economic factors that drive a market

2.Patience- Having patience can sound simple, but is not always the case. There is always a lot of pressure to move fast and quick in the real estate business as the best deals go quick and allowing deals to run past timeline can be expensive. The best investors have learned to temper this pressure with wisdom and patience. They know when they need to run fast and when they need to wait for the right property.

Many newbie investors set a deadline for when they would like to buy their next property and are under pressure to make it happen even when the property is not fruitful. Good investors are not under this pressure and have patience for the right and profitable deal to come their way.

3.Vision- Real estate may look like it is all about the numbers, however this is not the case. While buying cash flowing property and holding onto it for a long period of time will generally give you wealth, but the best investors do more than this. They buy and improve the assets In their portfolio adding value in additional ways.

In a hot market, you don’t just find good deals but make good deals. Top notch investors see ways to add value to properties without spending money on it.

Some common ways investors do this are;

  • Adding bedrooms to a house with less than three bedrooms.
  • Adding bathrooms to a house with less than two.
  • Buying income property and increasing the rents.
  • Buying property with strong bones that needs cheap upgrades.

There are many ways to add value to a property and the best real estate investors have mastered this. They have the vision to buy something as it lies and make it matter.

4.Efficiency- It is important being efficient  and not loose the best deals. In order to become efficient, smart business people look for things that take up time throughout their day that are not adding value to the business. Answering every email, phone calls and following tasks that are someone else’s responsibility are examples of ways we prevent ourselves from focusing on what really matters.

Contractors are much less likely to miss their timelines if they know their boss is an efficient person who expects you to be the same. The best investors expect information to be delivered timely and in an easy format. They use their time wisely and on tasks that add value.

5.Focus– The best investors are highly focused, know what they want and do not let anything prevent them from getting there.

The best investors do not let any obstacle stop them. They believe in the ‘Pareto Principle’ (also called the 80/20 rule), it can be summed up by saying 20% of your efforts will result in 80% of the results. Top business people adhere to this rule and it is seen in their business plan.  By focusing their efforts on 20% of the job that produces 80% of the results they outperform their competition and make progress by focusing on their goals.

Top investors understand this and arrow their focus to concentrate rather than to expand it and weaken it.

6. Relationship building– If you want to know what the best business people focus on in their top 20% is relationship building. Those with the best relationship always win, whether its getting the deal first, or getting approvals by the city, getting the best price for the construction, the people with the best relationship grab the opportunity.

Bringing value to others is the foundational bedrock for relationship building, Learning that it is not always about you and taking steps to have faith in someone else can open big doors for later. Books like ‘How To Win Friends And Influence  People’ are classics top real estate investors read.

7.Leverage-  If you want to do anything at a large scale level, learning to use leverage is crucial. Leverage can be in many forms, but the most common ones are money, people, and opportunity.

  • Money- OPM, or ‘other peoples money’ is one of the most commonly taught tenants of successful real estate investing. At a certain point, a successful investor may not have enough capital to pay for the deals. At this point OPM is the best way to cope up. By leveraging the resources of others, top investors grow their wealth and the size of their portfolio while creating a win-win situation for those partnering with them though financial backing.
  • People- By hiring talented, hard working trustworthy people, top tier investors get much more done for themselves. One of the biggest mistake of an amateur is thinking that they can do everything for themselves. Successful people have learned to leverage the talents and abilities of other people to allow them to focus on the business.
  •  Opportunity- Successful business people learn that every win is not just a win but an opportunity for another win. One successful endeavor almost always leads to more opportunity to repeat it. For example, when a project is completed and the investors are happy it is much easier to leverage the success into getting their capital again in the next deal.

When it comes to real estate investing, very little is new. The majority of investors are learning from other peoples experiences and through their practice. If you want to be the best, start studying what they do, how they act and what they think.

Collected and published by PropertyePortal editorial team. Get in touch with us at [email protected]