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These are the Skills You Need for a Successful Career in Property Investment

These are the Skills You Need for a Successful Career in Property Investment

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A lot of people are interested in real estate investment but aren’t quite sure what it entails. It’s much more than buying and selling properties. There are other aspects such as wholesaling, joint ventures and property management which are lucrative for investors. Many people think that is something you need a lot of money to get into, but it doesn’t always require a lot.

If you are a landlord or prospective one, in addition to your definitive checklist, here are some skills you need to be a successful property investor.

  1. Understand cash flow

You don’t need an accounting degree to understand cash flow. A positive cash flow is one where income exceeds expenses. This should be the objective of any property investment. In order to achieve this, you must know all expenses associated with the property- maintenance, vacancies, insurance, fees, property tax, mortgage and so on.

There are other figures to be wary of. For example, if somebody suggests a property investment with 3% cash on cash Return on Investment (ROI), you should walk away from such a transaction. Knowing acceptable standards for deals such as cash on cash and price to rent ratio is important too.

  1. Communication and management skills

Networking is an essential skill for real estate investors, especially for first timers. You will need a network of team members to access new opportunities, market prospects and knowledge. Experience is the best way to learn. Every investor will be required to make important decisions at some point, from purchasing new property to renovation projects. Having a team makes this easier.

When interviewing prospective tenants, good communication skills makes for effective screening. Legal compliance is a key part of being a landlord, so maintain firmness with tenants where necessary. With good communication skills, you will be better at negotiating costs and hiring of labour.

  1. Be honest

The real estate practice already has a less than stellar reputation when it comes to ethics. Although, as an investor, you are not expected to have a degree in ethics, but you can take advantage of the situation and make a name for your business. People are automatically drawn to transparent services, and establishing a positive reputation will get you word-of-mouth recommendation.

Since the real estate investment business is all about people, an investor’s reputation is going to be influential. Successful real estate investors know it is better to have integrity than exploit unsuspecting clients.

  1. Be risk savvy

The real estate market is a turbulent one. For example, the recent uncertainty that plagued the industry few months ago, in the wake of Brexit polls. At the time, the property market was said to be heading for freefall. Today, it is relatively stable and price of housing appears to be climbing steadily.

There will always be times like these, and as an investor, it is important to keep your head straight and not make hasty decisions. Being risk savvy comes with the business- you win, and sometimes you lose. The goal is to mitigate against these risks as much as possible.

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Catherine
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Catherine

Blogger & Mother at Career Zine
Avid blogger and career path expert who loves to help people fulfil their dreams.Currently raising my family and walking my dog when i'm not on this site.
Catherine
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