On the one hand, it’s true that there is no “one size fits all” approach to successful real estate investing. Every market is different, every property is unique, and all buyers and sellers will have their own specific considerations. Many seasoned real estate investors share a few tips and tricks, especially among those who are consistently seeking out new ways to stay ahead in the game and maximize their returns as much as possible.
The difference between a good real estate investor and a great one is often less the product of any one major move and is more about a series of smaller and more strategic ones, such as skip tracing.
Here Are Five Prime Ideas And Tricks For Seasoned Real Estate Investors
If you’re an experienced investor who wants to elevate your abilities as much as possible, there are several key things to keep in mind.
1. Hone Your Negotiation Skills
Regardless of how long you’ve been investing, being proactive about honing and developing your negotiation skills is always important. Remember that it isn’t just about who is the “better arguer” — it’s about walking away with the best possible deal given the circumstances.
This is especially true in terms of wholesale real estate investing, where you’ll be negotiating with both a buyer and a seller. While you shouldn’t be afraid to ask for exactly what you want, you also must be prepared to listen to someone else’s needs. Understanding how to meet those needs while still walking away satisfied is important. These techniques will make a big difference in what you’re asking for and how often you actually get it.
2. Build a Strong Network
Another quality that many seasoned real estate investment professionals share is that they’re constantly building and growing their network. Indeed, this is one of those situations where your circle can never be too large – especially if you’re in real estate investing for the long haul.
Don’t just keep a list of buyers and sellers you’ve interacted with in the past. Attend auctions, association meetings, home and trade shows, etc. Put yourself around like-minded individuals with many of the same goals as you do but may have access to resources you don’t.
Just because someone can’t help you today doesn’t mean that will always be true. Likewise, doing a favor for someone in the short term may pay massive dividends over time.
3. Leverage Creative Financing Options
Traditional financing is one of many avenues worth pursuing in real estate investing. To help make sure you can capitalize on opportunities quickly as opposed to being forced to watch them pass you by, you can pursue several different methods, such as:
- Cash-out refinancing.
- Seller financing.
- 1031 exchange.
- FHA loans.
In wholesale real estate, which requires a far smaller initial investment when compared to a traditional real estate deal, even a personal loan may be what it takes to get the job done in the right circumstances.
4. Implement Advanced Market Analysis Techniques
Do you know what’s going on regarding the current real estate market, where the hot properties are, how much they’re selling for, what current margins are, and other details? Terrific—now, be prepared to go deeper.
Advanced market analysis for real estate investment can uncover a whole new story about the local market that many other people are missing. Supply and demand data can help you uncover new property sectors or geographic sub-markets with great potential. Look not just where an area might be growing, but how. Consider whether demand is surging for single-family homes, multi-family units, or commercial properties.
5. Stay Dialed Into the Market and Trends
Finally, don’t allow yourself to forget that the real estate market is constantly changing—meaning that today’s “best practices” may be woefully inadequate even as soon as a month from now. But as you do so, don’t just pay attention to where things are today. Give equal weight to historical data—meaning where the current trends came from.
Doing so will help you develop a keen eye for how the past can influence the future. So you won’t just stay on top of current trends – you may be able to predict a few new ones that will allow you to get there before anyone else has the chance.
Beyond that, seasoned real estate investors should also make it a constant priority to diversify their investment strategies as much as possible. You should explore many different types of opportunities, not just real estate, to ensure your larger plan has no single point of failure. Your wins should always make up for your losses. The more wins you have, the more likely that is to happen.
For real estate, in particular, you should also optimize your property management practices whenever possible. The more efficiently and cost-effectively you can run a property, the higher your return will be. Note that this cannot come at the expense of tenants. Happy and satisfied tenants don’t tend to look for other places to live, meaning that occupancy rates won’t be something you have to deal with so long as you’re committed to striking this pivotal balance.
Even seasoned real estate investors can make better decisions by incorporating these insider tips and tricks. They can more successfully mitigate risk. They can also achieve greater profitability in their investment portfolios, which in and of itself is the most important benefit of all.
Barsha Bhattacharya is a senior content writing executive. As a marketing enthusiast and professional for the past 4 years, writing is new to Barsha. And she is loving every bit of it. Her niches are marketing, lifestyle, wellness, travel and entertainment. Apart from writing, Barsha loves to travel, binge-watch, research conspiracy theories, Instagram and overthink.