What skills are needed to become a successful investor?

Orem, UT · Member since 2017 · 51 posts · 33 votes

Hey BP! I've been taking some time to think about what skills I need to develop to become a high performing real estate investor and I wanted to get your opinion. In general, what are the three most important skills that make real estate investors successful?

Thanks for your input, I'm curious to see what those of you who have been doing this for much longer than me have to say!

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Michael Guzik

Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes

@Kaydn Jensen That's a great question my friend. In all honesty the skills you need to be successful in this business are the skills you need to be successful in any career, or area of life. Your mental state/thinking is THE MOST IMPORTANT THING. Success is 80% mindset. You need to be able to learn, work hard and stay positive. Being a people person is a huge plus since this business is all about relationships, but it isn't necessary. Just being honest, hard working and positive will get you so far my friend. It really isn't as complicated as you may, or may not think. Just being a good person and doing your absolute best consistently will take you so much farther than most.

Patience is also a very big key. That is one thing I will say that you have to have. Many people get into this with high hopes of getting rich quick and quit a few weeks, months or years later. WEALTH takes time. You must be willing to work hard and keep working hard even if you don't get results right off the bat.

One of my very valued and successful mentors says being an entrepreneur is like baking a cake. You need all the right ingredients to make your cake(business) come out delicious. Many people get the ingredients correct, but when it comes to baking the cake is where they mess up. They want the cake to bake in 15 minutes, so they take out ingredients or turn up the temperature to 600 degrees. That doesn't work. IT NEEDS TIME TO BAKE. The cake will take 45-90 minutes regardless of how you feel or wish. Many people just don't give their cake time to bake and quit too soon. That analogy is life honestly. Patience is so key my friend I really can't stress that enough.

The last thing, which it seems you are already doing, is LEARNING. Listen to podcasts and read EVERY DAY. That is so key my friend you have to constantly be learning and growing. I wish you the best brother and can't wait to see you on the site in the future, and see how far you have come!

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Dustin Beam
Kansas City, MO · Member since 2015 · 609 posts · 321 votes
8y
They ask a similar question at the end of each podcast. :)
This thread is still relevant, but just and FYI that you can find a lot of opinions on that question from people who have been successful at this game. It is a good question though.
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
8y
Math.
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Account Closed
Specialist · Paradise Valley, AZ · Member since 2018 · 3k+ posts · 2k+ votes
8y
Originally posted by @Kaydn Jensen:

Hey BP! I've been taking some time to think about what skills I need to develop to become a high performing real estate investor and I wanted to get your opinion. In general, what are the three most important skills that make real estate investors successful?
Thanks for your input, I'm curious to see what those of you who have been doing this for much longer than me have to say!
Taking action. - The rest comes as a result of that.
1 Reply
Steve B.
Engineer · Portland, OR · Member since 2014 · 1k+ posts · 1k+ votes
8y
@Kaydn Jensen as joe said you need math. Especially advanced skills like multiplication and division. You can get away with no math in a bull market, mostly. When I see noobie posts with no numbers listed or the wrong metrics applied I’m fairly confident their RE career will be limited to the current market cycle.
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Michael Guzik
Real Estate Agent · San Antonio, TX · Member since 2017 · 523 posts · 362 votes
8y
@Kaydn Jensen That's a great question my friend. In all honesty the skills you need to be successful in this business are the skills you need to be successful in any career, or area of life. Your mental state/thinking is THE MOST IMPORTANT THING. Success is 80% mindset. You need to be able to learn, work hard and stay positive. Being a people person is a huge plus since this business is all about relationships, but it isn't necessary. Just being honest, hard working and positive will get you so far my friend. It really isn't as complicated as you may, or may not think. Just being a good person and doing your absolute best consistently will take you so much farther than most.
Patience is also a very big key. That is one thing I will say that you have to have. Many people get into this with high hopes of getting rich quick and quit a few weeks, months or years later. WEALTH takes time. You must be willing to work hard and keep working hard even if you don't get results right off the bat.
One of my very valued and successful mentors says being an entrepreneur is like baking a cake. You need all the right ingredients to make your cake(business) come out delicious. Many people get the ingredients correct, but when it comes to baking the cake is where they mess up. They want the cake to bake in 15 minutes, so they take out ingredients or turn up the temperature to 600 degrees. That doesn't work. IT NEEDS TIME TO BAKE. The cake will take 45-90 minutes regardless of how you feel or wish. Many people just don't give their cake time to bake and quit too soon. That analogy is life honestly. Patience is so key my friend I really can't stress that enough.
The last thing, which it seems you are already doing, is LEARNING. Listen to podcasts and read EVERY DAY. That is so key my friend you have to constantly be learning and growing. I wish you the best brother and can't wait to see you on the site in the future, and see how far you have come!
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JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
8y
If you don't have any analytical skills, you better find someone that does. Yes, you need to know how to do math but what that doesn't say is learning how to interpret those numbers.
You need patience. This is a long view game.
You need perseverance. Things will go wrong.
You need to be willing to bust ***. Period. Hard work > theory virtually 100% of the time.
Podcast Guest on Show #243
Skyline Properties
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Kaydn Jensen
OP
Orem, UT · Member since 2017 · 51 posts · 33 votes
8y
Thanks to everyone @Michael Guzik @JD Martin and others that replied and gave me encouragement. I have a better idea of what areas I need to work on now and I'm ready to get to it!
0 Reply
Marisa R.
Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
8y
Originally posted by @JD Martin:

If you don't have any analytical skills, you better find someone that does. Yes, you need to know how to do math but what that doesn't say is learning how to interpret those numbers.
You need patience. This is a long view game.
You need perseverance. Things will go wrong.
You need to be willing to bust ***. Period. Hard work > theory virtually 100% of the time.
0 Reply
Marisa R.
Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
8y
Ditto
Persistence is key in my humble opinion.
If you can mix it with networking with the right people, this is huge. I believe many underestimate the importance of networking
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Account Closed
Rental Property Investor · Seattle, WA · Member since 2018 · 129 posts · 163 votes
8y
@Kaydn Jensen You need more than 3 skills.. Psychological mindset (non-tangible): 1) Drive and Hunger - ”I must do it” 2) Passion - Know your WHY 3) Guts - no fear 3 top skills (tangible) 4) Math 5) Project Management 6) Leadership - if you want to scale Goodluck and remember YOLO!
1 Reply
Kaydn Jensen
OP
Orem, UT · Member since 2017 · 51 posts · 33 votes
8y
@Account Closed thanks for your post. My intention was to ask more for the tangible skills but the way you broke it up into both was great. Thanks to everyone willing to take a minute to help me out.
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Dean Letfus
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
8y
Firstly and most importantly know your risk tolerance level.
Second know how to set and monitor goals in keeping with the above.
Lastly understand maths, (I think you Americans call it math), and learn to leave your emotions at the door when you analyse deals.
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Marian Smith
Real Estate Investor · Williamson County, TX · Member since 2011 · 1k+ posts · 961 votes
8y
@Kaydn Jensen Money management. Be thrifty or earn a lot at your primary job. Organization. If you devise a business plan during your first flip or rental then the next one is more profitable and goes smoother. I have no “people skills” but I get by because I trust but verify and treat everyone fairly and with respect. I would never raise my voice like on TV. If I am treated poorly I just never use a tradesman again. Lastly, I have a handy family. We get a certain degree if satisfaction out of doing a lot of the finish work. Really knowing how an hvac system, plumbing system, building envelope works is a big plus, and knowing what is involved in a rehab and how much skill, time and effort (as well as labor pool) is required per job can help you accept a bid with confidence...and price the asset in the first place.
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
8y
@Kaydn Jensen I would start by learimg real estate numbers and what constitutes a “deal”. This skill is paramount to successfully getting started. All the best.
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
8y
@Kaydn Jensen I would start by learimg real estate numbers and what constitutes a “deal”. This skill along with understanding exit strategies is paramount to successfully getting started. All the best.
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