In the last post, we tried to examine why many real estate investors fail or do not record much success in the real estate investing and development career most of which largely depends on their incapacity for growth and expansion, lack of strategic development plan, inaccessibility to consistent funding and reserves to take care of unexpected change in economic and business condition; uncertainties of the market determinants.
Without wasting much of your time let’s dive into the concluding part of the discussion but before we do, it is worthy of note that besides planning, financing, seeking real estate knowledge and skill-set another very important factor to real estate investing success is to have a stringent guideline you must stick to and rely on to help to accomplish all your set out investment goals and objectives.
This stringent guideline will assist in ossifying the mainstay structure or system of your real estate investing and development plans, it will be of great advantage if you could work on the adaptive and flexible aspect of your investing strategies to allow for creativity, it helps set limits and boundaries as well as create standards for your real estate business, you could easily determine what to tolerate, avoid, go for, how low and high you can go in transactions, negotiation, contracting, service and product delivery.
It is somewhat strange to see new investors particularly very green investors want to be smart and will want to try their hands on new stuffs, inchoate ideas and cockeyed plans to be creative but in doing so often times put themselves in a self delusional morass of creativity and may lead to huge loss of money, time and energy which require you to bring down affected part of the structure for reconstruction and adjustment.
I guess this is not what anyone really want and am sure not all can cope with the devastating effect, frustration and losses this can create for investors therefore I urge you to spurn every cockeyed plans or ideas you don’t have clear knowledge of that you barely understand talk less of implementing, it could be your first class direct flight to destination failure.
What this simply means is that you must be cautious in the way you approach your real estate business and public relation because when not properly done it has a way of haunting you particularly if you are not one of government’s blue eyed agent, company or establishment.
From my experience in real estate, it is obvious that when you start your real estate business and take your business to the people not everyone will like or love you or your business especially when you are bringing fresh ideas and concepts that need great deal of deliberation, discussion and explanation for people to understand or see things the way see it or from your own perspectives, to many people its like a red flag to a bull.
What I want you to understand is that whenever you are coming out with or introducing fresh or inchoate ideas, it is important to know that before people can appreciate it will take a long time and never make the mistake of reaching out to everyone on your list at the same time on your services, it should be a gradual process and see how people respond to it.
If the response rate is low especially with people you know would close their eyes to say yes to your services and products, If these people are not doing anything then something is wrong which you must fix before you proceed till you get it right. It will be improper to think that everyone rejects or dislikes your services or products when you reach out to all at the same time but reaching out to few and those few telling others and bringing more people on board is a sign that they like and support your services and products.
One of the most important problem of real estate investing especially real estate development that may cripple your real estate business or aspiration and may consequently lead to failure is not having reserves or an exit strategy for your real estate investing and development projects.
Having reserves and exit strategy serves as buffer to take care of unexpected problems of damage caused by terrible weather condition, unstable, increase or sudden change in market prices of building materials, delays that may occur due to obtaining or perfecting documents, permits or approval for your construction project.
It is vitally important to also know how to handle problems that may arise from your financial institution as a result of your business relationship to enable you consistently get funds to finance your real estate projects and of course foster good relationship with your lender or financial institution as well as prevent project failure and late delivery of projects.
If you don’t prepare for these real estate investing and development challenges and problems that will no doubt pop up to inevitably increase your budget and what this does is that, it may require you to seek for more funds to at least complete your project which may be difficult to get and hard to come by at this time and will ultimately corrode not only the project plans but also cripple your real estate business.
If one is not ready to do all that it takes to be a successful real estate investor it could impinge on the income, earnings, profits and returns on investment because real estate often times experiences ups and downs, market free fall and economic meltdown which affect the prices of real estate properties and investment decisions making becomes very difficult and tough.
However as you progress with your real estate career you acquire the essential skill-set required for real estate investing and investment property management success through experience and you are exposed to new ideas, concepts, opportunities, possibilities and new ways of doing business and perhaps develop great habits to conscientiously make investment decisions and helps position you as an expert in the industry.
Please let me reiterate that aspiring real estate investors must spend quality time on studying, researching and planning to gain the much needed experience in real estate investing particularly in real estate development, they must have a good knowledge, skill-set and understanding of the real estate market, liaise with contractors and other professionals in the real estate business , connect with financial institutions in and outside your locality to establish good working relationship.
The great news about real estate investing business is that most of the successful and highly revered investors and professionals have a humble beginning and most started out as real estate agents just like the story of Jide Taiwo & Co I shared in opening paragraphs of this post.
Most of these famous real estate investors started from selling and leasing out apartments, then later started renovating and remodeling of properties till they have the financial muscle to take up real estate development projects and ultimately this is a very good way to venture into real estate business and over time establish yourself as an expert in the industry after gaining experience and making enough real estate contacts of professionals.
Most times people claim to have natural skill-set, instinct and ability for real estate investing business but I would love to advice you that nothing good comes easy and as a new investor you must understand that making or having great success in real estate is tough and definitely not an easy task or a get rich scheme but is deliberately slow and extremely difficult for beginners.
Real estate investing business is extremely difficult for new investors especially if one is not capitalized, lack consistent funding and inept, you must suss that consistent funding, skill-set and knowledge are what separate the successful real estate investors from unsuccessful real estate investors.
For this reason you must always find ways to fund your real estate investing and development project as well as understand the requirements of financial institutions and hard money lenders and of course deal with what could hinder you ability to secure consistent funds.
Never be overwhelmed or disturbed by the challenges or problem created as a result of not making so much money as expected in your first few years in your real estate business which happens to the most common reason responsible for why many new investors give up on real estate investing.
I strongly advise that new investors focus more on their plans and action steps developed to achieve their real estate goals and of course the need to increase their knowledge and skills in real estate to surmount or overcome being overwhelmed, confused, and motified by the pressure of not making sales conversion and clients rollercoaster.
However they leverage on the nirvana and the feeling of satisfaction and pleasure of providing exceptional real estate services and products to your clients, also on the increasing confidence as well as the developing sense of accomplishment and of course the privilege of helping to create a better life and a more secure future for you, your family, community and the nation in general.
In many of my previous posts on this platform, I have extensively discuss and need not over emphasize the importance of always having a good contractual agreement that will protect your interest in every real estate transaction or development project you want to perform to keep you safe and secure at all time.
It is always necessary and important for you to mull over your contract agreement and if you get this first step wrong you have set yourself up for failure and will experience difficult real estate investing nexus that may bring some sort of stress, confusion and frustration that could be overwhelming enough for you to give in especially when when it involves inadequacies in the contract agreement.
Apparently continuous learning, taking advantage of quality connections in the real estate industry and increasing your knowledge to get attuned to the real estate risk and jargons used by professionals as well as having a good understanding of what services you would be needing to accomplish your real estate goals and objectives.
New investors can also help themselves to cut cost of real estate investing particularly in development projects by being smart with the supervision of their real estate project to ensure that they reduce overrages for effective and efficient management of their building projects.
They must also ensure all project work breakdown structure and tasks are properly planned and budgeted for to avoid over paying contractors and building or material resources needed for the completion of the project.
I want to encourage you to be an ideal investor and not a desperate investor who are only looking out to make few bucks, those who lack ideas, are inept and set out just to solve one financial problem or the other but are not interested in building financial wealth and stability with real estate investing and development.
I am sad to inform you that you may encounter the evil deeds of some debt collected who go about calling themselves real estate agents or running a real estate management service company who may be out to torment you instead of mentoring you, they don’t have the skills to tutor or mentor new investors but are quick to destroy or bury any upcoming investors with fresh ideas.
Never make the mistake of trying to let such people know what you do or are about to introduce and remember it is difficult to teach old dogs new tricks no matter how great your ideas are they will never see anything good in it or what you are trying to do and all you will hear from these group of tormentors is that it can’t happen in this country just to confirm their position on your views and the fact that they are not ready for change, this best explains why you need to introduce yourself and services gradually especially when you are bringing something new to the table.
These tormentors only sit back to stop or stifle your progress and success in real estate to justify their failures and incapacity to professionally deal with real estate issues especially complex and complicated aspect of real estate transaction. They are afraid of change but we are trying hard and also our best to make it less threatening for them to appreciate our work even though they don’t like us but the truth must be told.
Anyone who is interested in taking up real estate investing particularly real estate development as a career must understand there is no short cut to real estate success but if you can approach it with diligence, steadfastness, patience, the desire for success and the courage to face any difficult challenges you might encounter then the sky is the beginning for you and you shall surely strike pay dirt if you are discipline in your approach.
My penultimate advice to you is that, it is time to stop moping around, get serious and be determine hell or high water always keep your pecker up and be wary of paps from incompetent professionals or experts who often help people build their real estate structure, strategies and system out of playing cards, this will lead you nowhere and failure is imminent.
Finally, I must reiterate that to be a successful real estate investor you must be a very ambitious, agile, be thirsty for achievement, have great personal and professional strategic development plan, tenacity to succeed, result oriented and must definitely have capacity for growth and expansion.
Let me leave you with the quote of Florence Luscomb who says there is no end to what you can achieve or accomplish if you don’t care who gets the credit or glory
Keep pushing up there is no limit to what everyone or anyone can achieve in life but we must be discipline in our approach.
Best of Luck!
If you like what you have learnt or gained anything from this post you can like and follow us to get more posts on real life issues and concerns on real estate investing and investment property management send directly to your email
Join us on our social media networks on Facebook, Twitter, Google + Linkedln on our quest to demystify humongous and heavy real estate investing and investment property management burden, issues and concerns that might be threatening to turn your investment property assets into liability
Ordiez Resources Inc, Where The Future Of The Real Estate Industry Begins, This Is How Tomorrow Moves In Real Estate Investing And Investment Property Management, Serving And Guiding Humanity http://www.ordiezresources.com
Remember that opportunity to serve and guide humanity is our greatest privilege and making our clients happy and satisfied always is our greatest pleasure,
Hence if you Think real estate, Think Ordiez Resources Inc
For Ordiez Resources Inc