The DNA Make-up of a Successful House Flipper
January 26, 2017
As little kids, we all daydreamed about what we wanted to be when we grew up – teachers, actors, doctors or astronauts. Back then we had very different mindsets about what we wanted out of life.
As we grew up, our expectations and needs changed…and so did our dreams. Providing for our families, securing our financial futures and spending time enjoying life became our top priorities. Many of us discovered the path of real estate investing, but paused because we weren’t sure if it was a good fit.
Over time I’ve come to realize that those who are successful at flipping or renting properties all have similar characteristics — call it, a specific DNA make-up if you will.
Successful Investors are Risk Takers
Now I’m not saying that to be a successful real estate investor you have to jump out of airplanes or scuba dive with sharks during your off hours, but typically, successful investors are willing to take calculated risks on projects with often unseen potential.
These risks are truly “calculated” in that they take the necessary time to perform their due diligence before jumping on those properties that others might pass up. Successful investors have a keen instinct when it comes to seeing a diamond in the rough, and thus, typically make deals with greater ROI and build stronger, long-standing rental portfolios.
Successful Investors are Big Picture Thinkers
Successful investors don’t simply focus on the here and now — they look down the road 5, 10, or 20 years and are able see the potential of a community and the possible flip or rental properties within it. They watch market trends and plan for the future.
Successful real estate investors also have one or two trusted advisors around them. These are the people they turn to when they want a second opinion or need to run a big idea by.
Successful Investors are Agile
Now let’s be honest — it’s rare that a flip or rental project goes exactly as planned. Real estate renovation projects are notorious for experiencing bumps along the way, and successful investors know how to ebb and flow with the bumps and don’t panic each time an issues arises.
A successful investor will view each of these issues or challenges as an opportunity or puzzle that needs a creative solution. They will come up with multiple options versus just jumping towards a quick fix solution that could potentially have a ripple effect on other projects tasks down the road.
Successful Investors Know When to Walk Away
When you’ve spent a great deal of time and money on a project, it’s hard for many of us to walk away from it. However, a successful investor will instinctively know when it’s time to wrap-up a project and cut their losses before getting themselves in too deep.
A truly successful investor will even know when to walk away from deal before it starts. Although it might look “okay” on paper, a skilled investor will be able to spot those often overlooked issues lurking in the background and will pass on a deal that has the potential to fail or under deliver on their returns….no matter how good it seems when first discovered.
Is Your DNA Ready to Invest?
Out-of-state real estate investing isn’t for everyone, but for those who have the DNA make-up and are exciting about the possible adventure, then you probably have what it takes to be successful.
And remember, if you’re new to real estate investing, there’s no reason to go at it alone. The Simply Do It Guided Investing program ensures that you’ll have some of the industry’s best at your side throughout the journey; offering you that sound, sage advice you need to hone your inner investor and develop the skills you need to be a successful real estate investor.
Contact the Simply Do It team to set up your one-on-one strategy session and take the first step to your successful real estate future.