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Posted almost 7 years ago

Lessons Learned from Veteran Investors

I’ve been investing in real estate for more than 10 years now. I also know a lot of people, many of whom I call close friends, who’ve been in the business for 15, 20, or 30 years - and some even longer than that! Through my own personal experiences, as well as what I’ve learned from other seasoned investors, I feel like I have a pretty good grasp on what works and what doesn't in this industry. There are lots of important lessons to learn as you move along this journey; here are the ones that I consider the most valuable.

A good mentor can literally save your business

I’ve seen too many excitable newbies go into real estate thinking that they know everything and are going to become some sort of mogul who amasses an empire. I’ve also seen new investors who are so timid, so indecisive, or just plain worried about making a bad choice, that they become paralyzed with fear and go nowhere.

In both of these instances, having a good mentor on their side would help. Mentors serve as friends, confidants, educators, advisors, and more. Making a connection with a veteran investor who is willing to share their knowledge and experiences with you, and who’s willing to invest their time to make YOU a better investor, is critical to your growth as an investor, and ultimately, your success.

Property management will save you a ridiculous amount of time

This is especially true if your real estate ventures are more of a side gig, and you’re still working a full-time job. In these cases, you more or less need a great property manager. These guys (and gals) will take care of most everything associated with your rental property, from tenant selection to rent collection to maintenance. Of course you’ll still be responsible for major decisions, but the day-to-day work is covered. And even if you’re not working a 9 to 5, and real estate investment IS your full-time job, you’ll still love all the time you’ll save by contracting with a property management company. And you know what they say - time is money.

If it smells bad, it probably is bad

I’m not talking about a property that literally smells bad (although this is cause for concern). I’m speaking in figurative terms. If a potential investment stinks (i.e., the numbers aren’t adding up, the neighbors are trash, the layout is weird, etc.), and your gut is telling you to move along, then that’s what you need to do. You’ll learn pretty quickly that it’s a good idea to listen to your intuition and let it be your guide because, more often than not, it’s right on the money.

Discovering your niche can propel you toward success

Most investors have a niche. Very few are good at everything they try, and finding your specialty early on can save you a lot of stress, time, and cash. Maybe you’re great at managing contractors and can even handle some reno work yourself. If so, perhaps house flipping is your niche. Or maybe your skillset lies in managing commercial properties. Whatever it is, try a few different things until you find what a) you’re interested in most and b) you’re good at. Then, focus on that area and watch how quickly your business can grow.

It’s okay to say no

The last lesson that I think every investor needs to know is that saying “no” is A-OK. It’s not a word most of us like to hear, and for some of us, it’s even harder to say it to others. But there are times when you must, and learning when those moments are how to use that authority is important. If you don’t, you’ll compromise your own success. There will always be people in the world who want to take advantage of you, and learning to stand up for yourself and use the all-powerful N-O is the best way to prevent that from happening.



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