What New Denver Investors Need to Know
Every Denver real estate investor makes mistakes they wish they could undo, but unfortunately you can’t go back in time. What you can do is to take the advice of experienced and successful Denver investors because at one point in their careers they were exactly where you are right now. As you establish your real estate business, learn from the mistakes other Denver investors have made. Below, find out what six things all new Denver investors need to know.
Let Numbers be Your Guide
Even as a brand new investor, you probably have a solid idea of what makes a good deal. However, entering the business can be slow and frustration has lead plenty of investors to make bad deals and settle on properties they weren’t excited about. You never want to buy a property simply because it’s the next best thing on the market, because when you take ownership of the property you will find that numbers aren’t what you were hoping for. Real estate is a numbers game, so always let the numbers be your guide. Your ultimate goal is to buy low, sell high and turn as much profit as possible, and you can only do this when you invest wisely in solid deals.
Learn to Accept Rejection
Not every marketing option is going to be incredible and not every property is going to earn you a million dollars. Real estate is a game of constant ups and downs and it’s important to develop a thick skin if you plan on being a successful real estate investor. The odds are that you will hear “no” far more often than you hear “yes,” but you can’t let that make you afraid to make an offer you are comfortable with. Learn to accept rejection and keep plugging away – your hard work will pay off.
Know When to Walk Away
One of the byproducts of learning to listen to the numbers is that you will know when it is time to walk away. There will be plenty of situations that are perfect for another investor but aren’t quite right for you. While saying no is never easy, it will help you stay focused on your goals. Before you take any action, always ask yourself if what you are planning on doing will help you reach your goals. There is nothing wrong with passing of a property if it won’t help you reach your goals.
Rehabbing is not Easy
Some of the rehab reality shows actually do give some great information on the rehab and flipping process, but many of them glamorize it in an unrealistic way. Remember that while you watch the process in an hour-long program, it takes months to successfully rehab and flip a property. There is plenty of upward potential in rehabbing, but you have to be wise and know what you are doing. One wrong mistake during the process can turn an incredible property into a completely average one.
How to Manage Money
If you are coming into the real estate from another profession, you are probably used to getting a paycheck on a regular basis like every two weeks. When you work as an investor, you get paid only when you close on a property and it can be weeks or months between deals. You receive a lump sum once your property closes, and it can make you feel like you won the lottery, but it’s crucial that you manage your money wisely. You have to manage your business expenses as well as your personal expenses and it can be difficult to do this when your income is sporadic.
Educate Yourself
The real estate business is constantly changing and to the most successful, you will need to make sure you stay current with the industry. Stay on top of changes as they occur by using your networking meetings or investment clubs as educational opportunities. The more information you have, the better your chances of making a serious profit in your real estate business.
Before you enter the business, make sure you do your research and that you understand what you are getting yourself into. Once you are in the business, you must still continue to educate yourself and to learn from your mistakes and the mistakes of others. Keep these six tips in mind when you are considering real estate investment as your next career move.