A Well Written and Thoughtful Plan:
All successful real estate investors have a written plan that they constantly refine and live by in their day-to-day investing lives. With the ever changing market place, the key difference in people’s abilities is directly affected by the goals they set and how well they stick to them. A study was conducted on the Yale student body class of 1953 on how planning effected the future financial success of a well educated population. The study found that three percent of the graduates that had written down financial goals for their futures at the time of their college graduation. When the group reconvened twenty years later, this same three percent that started their careers with a plan, controlled more combined net worth than the other 97 percent combined. As the famous old military saying goes, “If You Fail to Plan, You Plan to Fail”. The same goes true for real estate investors.
Once they have a written plan, successful real estate investors invest heavily in marketing so they have a continuous supply of potential deals coming their way. This supply of deals is the basis of their continued financial success. They all evaluate the success of their marketing programs and continuously alter them if they are not producing the desired results. You can have the best plan in the world, but if you don’t have a method of promoting it (our yourself) what good is it worth if nobody significant to your successful outcome knows about it?
Everyone is familiar with the phrase “knowledge is power.” Successful real estate investors have an insatiable hunger for knowledge. Educated investors are aware of the changing rules and regulations of real estate, and the profit potential of different paths that can be taken in real estate investing. A Harvard professor summed it up succinctly when he stated “if you think education is expensive, consider the cost of ignorance.”
Most careers emanate from a defined and established program of formal education. Most schools do not offer degrees in real estate investing like they do for business, accounting or engineering. Successful real estate investors network with other real estate investors so they can each learn from each other’s successes and failures. It might be said that networking is the path of formal informal learning for successful real estate investors.
Strong Financial Knowledge:
Many companies with good ideas fail because they were unable to make a profit. If your real estate investments do not make a profit then you too will fail as an investor. Successful real estate investors understand the impact of income and expenses, the rules of accounting and depreciation, and they make decisions based on financial information that will allow them to be profitable.
"If you cannot do great things, do small things in a great way.”
Napoleon Hill quote