Connecting with other real estate investors is an integral part of this business.
You can’t and shouldn’t avoid forming relationships with other investors. Not only can it help to have others around who understands your same investment challenges and the weight of your victories, but you never know when they may be able to share leads and opportunities with you — or give you some solid advice.
In real estate investment, however, you shouldn’t blindly accept advice, even from a seasoned veteran. Knowing how and when to take advice is worth learning early on in your real estate investing career.
Dealing with Advice from Other Real Estate Investors
Advice from other investors can be invaluable if you feel at a loss or stuck in a given situation.
Should I buy that property? How should I deal with this problem? How can I fill that vacancy? Before you take and act on advice from other investors, there are a few considerations to keep in mind.
Every Situation is Different
Your experience with investments is not the same as those of other people.
You likely operate in different cities, areas and neighborhoods than another investor does. One property in one part of town could be a no-brainer, while the same property in another neighborhood could be a complete flop.
If one investor was wildly successful with his or her strategy, it doesn’t mean you should try to replicate it exactly. What works in one place may not work in another.
While advice for your situation could be good, it’s important to have all the hard facts regarding the investment property and the place it’s in. Maybe advice from another investor will hold up, maybe it needs tweaking and maybe you should save it for another time.
You Budget is Different
Keep in mind that, depending on the differences in your budget, risk tolerance between real estate investors is going to make for varied perspectives.
An investor with deeper pockets might encourage you to take a risk that you really can’t handle — not on purpose, but because you have different experiences. One of you may have more aggressive goals in mind, too, so be careful not to try too hard to invest like another investor.
Even if it Doesn’t Help, be Grateful
You won’t take every piece of advice that comes your way.
No matter what, always accept the wisdom from another investor graciously — thank the person and communicate how valuable it was to hear an informed perspective. Mention that you’ll take it into consideration, but don’t necessarily say you’ll do it. Showing that you appreciate someone’s input, whether or not it solves your problem, will help maintain a good relationship.
Your Investments are Your Choice
Ultimately, the decision is yours. All the advice in the world won’t solve your problems.
This is your investment property, your money and your decision. Take advice and gather the facts. At the end of the day, you are the only one who can decide what’s right for you and your investments.
What the best piece of advice you’ve gotten from another investor?
Be sure to leave your comments below!