“I bought a two story house. …One is a story before I bought the house, and another after”
Property investments have a certain regal air about them. Many rags to riches stories were made on the foundations of smart, thoroughly researched, and careful real estate investments. But beware behind their more renowned colleagues there are many more riches to rags which lurk in the shadows.
Being a successful investor and earning big bucks with just a erratic whim of an investment is what everyone dreams of even successful investors. A successful investor himself Real estate expert Jeff Adam says that returns in real estate are not produce of any epiphany, but hard work, awareness and sound judgement. Without these you might want to consider another class of assets.
So what makes a successful investor? Is it weight of your money? Or the superstition of a lucky penny? No, none of these can help you achieve your desires. Outbidding competition by splurging more and shouting extravagant bids will only help deplete your riches. Soon enough you might start calling the penny jinxed. So the question still stands what makes a successful investor? Let us find out
Traits for a successful investor
- A successful investor doesn’t waste opportunities – true for any role in life, any successful respectable investor will grab a good opportunity without batting an eyelid. Good opportunities are scarce and passing by what little you get is an absolute error and raises questions on the investor’s judgment.
- Disciplined and practices self restraint – Investing money and earning profits can give you a high. But these forms of adrenaline rushes can get to your head and hamper your judgment. Therefore an important trait of the long term success of an investor lies in his discipline towards investing.
- Numbers – Investing is theoretically a numbers game and any smart investor is sure to have done a thorough research and conducted due diligence checks to be sure of the amount range he is willing to invest and also to know what he’s getting for it.
- Negotiation skills – any investor well versed in the art of negotiation is sure to extract the maximum value for his investment. Considering unregulated property rates, bargaining plays a huge part in majority if the real estate transaction and as such an investor with a silver tongue can easily find himself with the best deal of the lot.
- Funding sources – another must for investors is to have the free cash to play in heavy investments such as real estate. Requiring heavy upfront cash having the backup of source of fund never hurts and makes sure you are not forced to pass up on an exceptional deal.
- Sound Judgment – a good judgment goes a long way in making your deals something more than just dumb luck. An investor who can judge and quickly grasp the details will be able to understand the true value of the property and knows whether it can easily be sold off again or be a burden.
- Patience – real estate investment are generally thought of as long term investments. Hence a successful investor exhibits patience. Patiently waiting for the right time and the right opportunity is sure to bring out the most value from the investment.
- Understanding of Strengths and weakness – successful investors know their own strengths and weaknesses. Knowing when they could not support calling a higher bid yet knowing if they have the capability to quickly dispose of the asset in dire situations is a must for any investor to call himself truly successful.
