We live in an instant gratification society. We want to see an immediate return on whatever it is we are doing. While this may work for some aspects of your life it may not always be best for your real estate business. There are times as an investor that you need to look at the big picture. Instead of thinking about what gives you the greatest immediate return you need to consider what is best for your business six months to a year down the road. This may seem like forever away but successful investors know this comes much sooner than we realize. If you want to learn how to make your dream of entrepreneurship a reality this year, keep these five tips in mind:
- Set Short And Long Term Goals. Think about where you were and what you were doing one year ago. If you were in the business the odds are that you most likely made some pretty significant changes over the past twelve months. A firm set of both short and long term goals will help guide you with every decision you make. Instead of making rash decisions only to secure your next deal a list of goals will help you see the big picture. Your goals should be what drive you in every turn you make. If a deal or partnership doesn’t help in some way achieve your goals you should pass and wait for the next opportunity. This certainly takes some discipline but sometimes the best decision you will make is passing on an opportunity you aren’t 100% sold on. Map out where you see your business anywhere from 90 days to five years down the road. Revert back to your goals when things get difficult. Without a list of goals you can end up chasing your tail and not making any real progress.
- Create Lasting Relationships. Most people in business recognize the value of relationships. This is especially the case when it comes to real estate investing. A few solid strategic business partners are more valuable than a stack of business cards on your desk. To build these relationships you need always consider their position inside of a transaction. If you can make their life easier they will appreciate it and want to work with you again. If you can repeat this process on the next deal you may have secured a partner for life. Something as small as working with someone involved in the deal to reduce a fee or calling someone with bad news can make you stand out from the pack. Regardless of who you are or what business you are in you want to be recognized and appreciated for your efforts. By making an attorney, real estate agent or wholesaler know just how much you appreciate them they will be more inclined to work hard for you in the future.
- Create Follow Up System. One of the keys to long term real estate success is following up. As simple as it sounds you need to follow up with everyone you come in contact with. There are many cases of investors working well with a real estate agent or mortgage broker on a given transaction and never working together again. This isn’t because they don’t see value it’s usually because they never followed up. By simply reaching out and following up after transaction you give yourself the best chance at working together again in the future. Following up is something that people understand is important but don’t do enough. The people you reach out to will be much more inclined to want to work with you again. This is how lasting relationships are started.
- Every Action Has A Consequence. The people that stay in business the longest are the ones that understand every action has consequence. How you handle yourself in the middle of a tense situation is more important than how much profit you can provide. If you scream and yell and everyone around you people will find someone else to work with. Additionally you can get branded with a reputation that can be difficult to overcome. Conversely if you are the one that smooths things over or brokers a tricky conflict people will be much more likely to work with you again in the future. It is also important that you fight the urge to squeeze every last dollar out of a transaction. If you can make your real estate agent even a half a percentage more commission on a deal they will definitely remember it. The next time a deal comes their way you can bet that you will be one of their first calls.
- Embrace Change. The real estate business is constantly changing. Something you thought of even a few months ago may not apply to you today. If you are a step ahead rather than a step behind you will be in front of the curve and better prepared to make changes. Think about how prevalent foreclosures and short sales where just five years ago. If you based your business solely on these types of deals you may have found it difficult sustaining it. If you were able to shift gears and were open to change you were able to ride the wave. Doing this isn’t always easy to do but it is essential if you want to have prolonged success.
Long term real estate success requires long term thinking. As you work on building your day to day business always keep an eye on the future.