What makes a good investor when it comes to commercial real estate? Successful real estate investors know how to balance demand, rising and falling trends, economic effects on a real estate market and the possible rewards that can come with a good investment or the inherent risks of a bad investment. At LCI Realty, we have encountered all types of investors who want to dip their feet into the market in the Grand Canyon State. Over time, when you see a lot of deals, you learn what qualities make regular investors into successful real estate investors. Here are five practices that you can employ to make sure you get the most out of your investment:
First and foremost, it’s important to be aware that the decision to be an honest investor lies on your shoulders. Obviously there are legal boundaries that you must work within, but there are few ethical guidelines that restrict investors. However, real estate might involve property but the business is a people business. It’s easier to be successful in this business by practicing fairness, rather than trying to get away with underhanded practices.
Learn Your Market
Successful real estate investors have to know their entire market before they can find a niche. Staying on top of changes in the industry, trends, the rise and fall of rates and the actions of your competition will make you an effective investor. Make sure that you keep your knowledge market specific, instead of getting caught up on trends in other markets. Weighing the likelihood of national trends or trends in other markets entering yours is okay. Missing out on what’s going on in your market because you’re fixated on other trends is not.
Find A Niche
Like a fisherman, you need to set your net in a manageable area in order to reap the benefits. Successful real estate investors know that the way to make money is to find a niche in the market and concentrate on it. Building your understanding of one portion of the market will make you more informed and therefore more successful.
Plan Your Approach
Once you have examined your market and discovered your niche, you need to make a plan. Successful real estate investors make their moves with intention, taking care to map out their short term steps and making long term goals. Making goals and setting milestones for success will keep you on a path, instead of leaving you without direction.
Know Your Risks
Successful real estate investors are also aware of the risks that they face. Any person that moves forward without examining risks cannot be planning for the future and cannot be tuned into their market. Maintaining knowledge of the risks associated with the market trends and each property you deal in will only make you more effective as an investor.
Create A Network
A network of professionals make successful real estate investors even more effective. Seek out a team of professionals that are trusted by other successful real estate investors. This usually will include agents or brokers that you can trust, inspectors and contractors or even co-investors. Never underestimate the power of marketing in this business.
LCI Realty is proud to be the responsible representative for commercial real estate investors in the valley. Our network is extensive and we can connect you with properties that are sure to suit any of your business or investment needs. Reach out to us on our website or send a tweet to @LCIRealty today.