Like anything in life, we need to put in the hours, the effort and the dedication to achieve success. Investing in real estate is no different, as it takes time to develop a special skill set that will enable the investor to build his business identity and portfolio. Over the years I’ve met with many successful real estate investors in Costa Rica and other countries, and these are five traits most of them have in common…
Financially savvy
Interest rates, government policy, tax policy, and demographics are the four key macro factors that can drive the real estate markets up or down. A successful investor will constantly monitor them and try to always anticipate what the changes in these drivers will mean for the returns of the portfolio. Costa Rica is going thru a lot of reforms in each of these aspects; a new tax reform is already in discussion and it will have a direct impact in the economy and the real estate markets.
They’re good at saying “NO”
When you have a detailed and well-thought investment plan it becomes easier to see “the big picture”. It is then, that you can realize that most of the opportunities presented by either people or institutions aren’t a good fit for your portfolio and it’s easier to say “NO” to them, and actually take time to analyze and work on the ones that are a better fit for what you have previously laid as the backbone of your portfolio. Saying “NO” is key in this business.
They surround themselves with the best
This is where you separate the good from the great. If you’re able to put together a team of knowledgeable, trustworthy professionals that share your passion and are willing to work with you on every deal you make, you are half-way there. There are tons of lawyers, realtors, architects and business professionals, but it’s your job to identify the ones that will make you better.
Read, read, read!
The great investors devour books all year long. The more you learn, the easier decision-making becomes, it’s as simple as that. Look introspectively and be aware of the areas you need to improve on as an investor and get books that will make you stronger. For instance, if you have a solid financial background, read more about human behavior and body language, these will make you better at the important negotiations.
They’re not greedy
In this game greed can really be a capital sin. I’ve seen lots of investors burn all their wealth in a matter of a couple unstudied, greedy decisions. Great investors know that money is only an instrument in the investing world, however not the ultimate goal. They know that positive returns aren’t only measured in dollars but in overall happiness and satisfaction. In this bull real estate market we’re experiencing, play your chips smartly and hopefully set yourself in a powerful cash positive position that will let you sail thru the bear markets once they arrive.
WHAT CAN I BE LEARNING TODAY THAT WILL MAKE ME A BETTER INVESTOR TOMORROW?
