Many people get into real estate investment thinking they will instantly strike it rich. The truth is that building wealth in real estate takes time and requires consistent effort of several years before you start to see any real results. However, there are several strategies you can implement to help accelerate your growth rate and build up your real estate business in a shorter span of time.
Real estate investment is a great way to bring additional income to you and your family. The trick is not only to find great investments but to find investment opportunities that provide sustainable growth. You don’t want to invest your money somewhere that has the potential to lose all of its value overnight. Keep reading to learn some great tips to secure sustainable investment growth!
5 Tips for Sustainable Investment Growth in IL
Tip #1: You Are Running A Business
When you venture into the world of investing you are in all reality, building a business for yourself. It should be treated as such. You should dedicate time to your work and deal with people in a fair and consistent manner. Focus on your job at hand and don’t get caught up in the details. Sometimes you have to rely on your head over your heart when it comes to investment, and this isn’t always easy for newbie investors to manage. In real estate investing, time really is money. Market prices can fluctuate quickly. You will want to be able to swoop up great deals as they become available and unload properties you want to flip in a timely manner. The longer you hold a property, the more it will cost in the long run!
Tip #2: Have a Plan
Just like any successful business, you should have a business plan. This will help you create goals along with actionable steps to get you there. Ask yourself these questions:
- How many properties do you want to own?
- What kinds of properties do you see yourself investing in? Single-family? Multi-family? Commercial?
- Will you require the help of a property management company?
- What locations will you consider investing in?
- What is your price range?
- What size property are you after?
- Do you want to buy and hold or go for the quick flip?
- What is your exit strategy?
- Are there other partners involved? How are profits divided?
You should have clear answers to all of these questions with as much thought put into it as possible.
Tip #3: Build Your Power Team
Over time you will encounter many obstacles you’ll need to overcome and manager in your business. Often times having a great network of trusted professionals can help you successfully manage and overcome the obstacles you will face as a business. Spend the time to build relationships with professionals that will help you accomplish your business goals. Having a good relationship with other industry professionals will help you build a team of reliable advisors you can lean on when needed.
Tip #4: Find A Mentor
Building a relationship with someone who has been in your shoes, can be invaluable to your success. Your mentor should help keep you motivated, provide you with advice on potential purchases, and help you avoid making costly mistakes. You will learn more from someone who has done it all than you would in any book.
Tip #5: Go Direct To Sellers
If you are going to build a real estate business then you need to constantly be looking at potential properties to purchase. Acquisition is the lifeblood of any real estate business so you need to be sure you build a system that generates a consistent pipeline of potential acquisition opportunities. Focus your energy on being on speaking with individuals who want to sell their property.