How to Become Successful in Real Estate: The 9 Rules You Must Follow

 By Michael Perantonis 06/2023

There is no quick profit.

The first and most important rule that we should always keep in mind is that there is no quick profit with the right investments. If it happens, it is welcome, but it should never be the goal. Investments require study, analysis, and time to yield results. Haste and impatience can lead to extreme risks and losses. The right investments require strategy, perspective, and composure. We must constantly stay informed, analyze market trends, and choose the right timing for our actions. Investment success comes from long-term strategy and careful capital management. Therefore, always bear in mind that in the right investments, upward progress require patience and conscious choices.

Engage with successful individuals.

Learning from successful people is seen as a valuable source of knowledge and inspiration. By observing the successes of others, we can draw significant lessons and apply these principles to our own lives and professional journey. Successful individuals in their field provide us with benchmarks for what can be achieved through determination, hard work, and dedication. By studying our predecessors, we can learn which strategies and practices yielded results and apply the same principles to our own endeavors. Learning from successful individuals helps us develop skills, find inspiration, and achieve greater fulfillment and satisfaction in our lives.

Do not be driven by vanity.

Vanity can have serious and negative consequences on real estate investments and the industry as a whole. When investors overvalue properties or believe that prices will consistently rise, the risk of investment failure increases. Erratic real estate market performances and unchecked expectations can lead to excessively high prices and inflated values, potentially causing a dangerous real estate bubble. When this bubble bursts, investors may face significant losses. Furthermore, vanity can lead to irresponsible decisions regarding property acquisition and development, without considering actual demand or macroeconomic trends. This can result in an oversupply of properties and a decrease in investment returns in the real estate sector.

We work with those we trust.

Collaborating with people we trust is essential for our success. Trust creates a strong and effective foundation for working relationships. When we trust and are trusted, a sense of mutual support and cooperation is fostered. This allows us to work in an inspired and secure environment where we can develop our ideas and perform at our best. Trust is based on honesty, integrity, and reliability, enabling us to move towards common goals and achievements. Therefore, working with people we trust is a crucial part of our journey to success.

It is important to trust, but not blindly. Trust is fundamental for building successful partnerships, but we must also remain vigilant and use our logical thinking. This means evaluating the actions and words of the people we work with, analyzing their behavior, and assessing the results they achieve. We can maintain a balance between trust and self-protection by looking for signs of consistency, reliability, and efficiency. This way, we can work long-term with people we trust while safeguarding our interests and pursuing success with prudence.

We start with something small.

For a new builder, it is usually preferable to start with a small property. This approach allows them to gain experience and develop their skills on a more controlled scale. A small project enables them to secure and develop the appropriate skills and processes while simultaneously reducing the risks and financial implications in case of potential issues. Through this initial experience, the new builder can gain the confidence and success required to tackle larger and more challenging projects in the future. The small property serves as the foundation for the success and growth of the new builder.

Focus on the income a property can generate rather than its presumed future market value.

In the real estate industry, it is important to focus on the income that can be generated from a property rather than its presumed market value. The value of a property should not be evaluated solely based on upward trends in the real estate market, but also on the return it can provide. Instead of fixating on its increasing value, we should examine its rental potential or the return from its sale. A property that generates a stable income can be a secure and reliable investment regardless of market fluctuations. Therefore, our attention should be directed towards the sustainability of the income a property can offer.

Residential or commercial property? Diversification in the portfolio is the solution.

The decision between residential and commercial property as a safer investment depends on various factors and personal preferences. Residential properties are usually considered stable investments as there is a continuous demand for housing, and their value can increase over time. On the other hand, commercial properties can offer higher income potential due to business rentals. However, economic instabilities and market changes can affect the demand for commercial properties. To ensure investment security, it is recommended to diversify the property portfolio, including both residential and commercial properties, to offset any risks and take advantage of the benefits of both property types.

Avoid anything that promises certain and guaranteed profits.

Often, grand and impressive advertisements can be traps that aim to exploit your naive trust. Investments always carry a certain level of risk, and there is no guaranteed profit. It is important to carefully explore your options, seek advice from experts, and evaluate the return and risk of the investment. It is crucial to seek transparency and reliability from the company or entity offering the investment and make wise choices based on complete and trustworthy information. Opacity masked with excellent prospects and hope is a sign that you should immediately stop engaging. You will save both time and money.

Education and self-improvement.

Education and knowledge in the field of real estate are essential for a successful career. In the modern environment, real estate markets are demanding and interconnected with multiple factors. Understanding the evaluation processes, property management, and legal aspects require specialized knowledge. Additionally, education in the use of technological tools and data analysis is of paramount importance.

Real estate professionals need to stay informed about market trends, economic prospects, and legislative changes. Through continuous education and knowledge acquisition, real estate professionals can secure their competitiveness and the effectiveness of their business activities. Education in the real estate sector is undoubtedly significant, and one can acquire it from various sources. From attending seminars and educational programs, reading relevant books and articles, there are many ways to gain knowledge and specialization in this field.

Furthermore, collaborating with experienced real estate professionals can provide valuable learning and practical experience. Regardless of the source, continuous education and staying informed are vital to succeeding in the exciting world of real estate.