The real estate industry is a sector that had created a lot of entrepreneurs into billionaires. Some people think that luck plays a huge role in one’s success, but in reality, it is about the hard work and dedication one puts into learning and growing as a real estate investor.
The first phase is generally the most difficult, especially for beginners. One should remember when beginning out that no one was born with a natural talent or inclination to invest in real estate. Like any other undertaking, overcoming the challenges at the outset will take a lot of patience and determination.
Successful real estate investors have many characteristics to make it large in this industry, listed below are the top four.
A smart real estate investor is bold
A bold real estate investor sees an opportunity, even if it is something new and non-customary, put some research work on it and goes for it. This investor doesn’t let any prospect real estate investment slip without trying to check if it’s of any value. Gossips and heresy from the media or even family and friends, will not scare this person into investing in real estate after careful calculations.
Being bold does not mean being crazy. A smart real estate investor acts boldly upon facing great opportunities with limited risk at hand. An amateur investor will always think it is good to be bold all the time.
When real estate is mentioned, ordinary people will often think about condominiums and not about memorial lots for sale. For many, even thinking about how they would like to be peacefully laid is a hair-raising and is usually considered a taboo. Let’s face it: people aren’t thinking about death. It’s strange, awkward, and morbid, even if everyone knows it is inevitable.
According to Warren Buffet, one should invest when everyone is fearful. A smart real estate investor will see the golden opportunity in buying memorial lots as investments. Superstitions are an essential ally if you ask a pennywise investor that is looking into this kind of investment.
Not everyone is buying, but a lot will be needing it, and the cost is only growing by the minute. Memorial lots cost is increasing by 8 percent higher annually. Purchasing a memorial lot now will either earn or save the investor’s money in the future.
A smart real estate investor is an excellent researcher
To be successful in real estate investment, a smart real estate investor must be a master of his own strategy and have the knowledge and systems in place. Inexperience and overconfidence bring about a lot of chaotic deals.
The more an investor knows and understands the market, the more qualified the investor is on making sound business decisions. He needs to keep abreast of current economic trends, laws, and regulations that can affect his real estate investment.
In real estate, all investors know that location is a primary factor before investing. Such as the case when buying memorial lots, location still plays a vital role. The view can’t be appreciated by the dead, but they surely entice the living visitors.
It is also great if the real estate is easily accessible, not only by private transportation but by public utility vehicles as well. Wide roads leading to the place will assure that the investment will continuously increase the investment value since it is reachable and the roads are likely to have future infrastructure developments.
A smart real estate investor is proactive
As claimed by Murphy’s law, anything that can go wrong will go wrong.” A proactive real estate investor means the investor focuses on eliminating problems before it has a chance to happen.
Being a proactive investor means deciding and taking action to do what needs to be done and that acknowledging the fact that there is no room for excuses.
The real estate industry is no different from any other business ventures. Anyone who starts can make any excuse and justify why they haven’t plunged yet, or one can be proactive and find solutions to the critical issues.
For example, everyone will eventually experience death. If the headache and the cost of preparing for funeral arrangements are pre-planned, it would be easier for loved ones to deal with death in the family. Buying memorial lots allows the investor to be prepared in case of unexpected events happen in the future.
A smart real estate investor is a calculated risk-taker
No business has no risks. Real estate is not static as well. The value can go high or go low, and so are the risks. An investor will have to make do his due diligence thoroughly and double-checks on all the calculated risks.
For instance, you purchased two memorial lots for P53,000 each last 2017. You decided to keep the lots in case anything unexpected happens. After two years, you decided to move to a new location, but it’s far from the lots you bought.
Being a smart real estate investor that you are, you chose to sell it at P60,000 each, P3000 less than what the memorial park is offering. In a matter of 2 years, you made a gross profit of P14,000. That is an 11.67% gross margin.
You know that there are risks when purchasing a tangible asset, but it is a calculated risk because you know through research that there is an estimated 8 percent growth per year in the value of these lots and you are assured that there is always someone who will need to buy a memorial lot.
– Forest Lake Press –