Successful Property Investors Are Made, Not Born
 

Maybe the wealthy are successful because they have been taught not to neglect the basics. Many people , for instance, may make the assumption that successful people are just incredibly fortunate or that they've been born with some innate talent for handling money.

This just isn't true.

What the rich do differently from other people, and what every successful real estate investor does, is prepare. Good investors make sure to do their homework.

“The ABCs of Property Investing” author Ken McElroy relates a story about one of his clients, who became a client of his after making an utter mess of his investment . McElroy and his company are in the business of property management. Ideally, a property owner hires a property management firm at the outset, instead of trying to manage his property himself from another city. That is what this investor tried to do. He soon realized that the time needed to manage his own property was unreasonable.

This wasn't this investor's only error. In addition, he hadn't even bothered to make a visit to his investment property prior to buying it, and as a result he had no idea it was filled with deadbeats. He hadn't bothered engaging a group of experts who would have gladly told him not to buy property in that area, which was also full of criminals. It was a bad neighborhood, and he should've known to stay away from it. In fact, he could've avoided it very easily if had he only done his homework.

It's not difficult to imagine the enormous amount of money he put into the rehabilitation of the property—money he would have saved just by budgeting for the experts he so badly needed. It would've been impossible to fix the neighborhood in which the property was located, and therefore the property didn't have the potential to fetch top-dollar rent.

More often than not, the wise investor can't afford to NOT employ a team of experts.

Wealthy real estate investors are also possessed of an amazing amount of focus. That's the reason that they are wealthy. They pick their target and they narrow their scope until they are zooming in on one piece of property. They've already decided what kind of property interests them. As a matter of fact, they may concentrate on apartment complexes or hotels or what have you. They always keep in mind the areas that they are interested in and the age range of buildings they are willing to look at.

In the event that their preferred area does not yield any interesting leads, they try the next best, and so on. But they never lose track of the acceptable parameters.

One important lesson wealth teaches people is that money opens many doors. They know one doesn't need to wait until a piece of property is up for sale to purchase. If a potential buyer takes the current owner by surprise, it's sometimes possible to get a great deal on a piece of real estate that isn't even up for sale. And there are not any competitors to outbid you.

The rich do appear to reside in a different world. For them, funds are always plentiful. They won't break a sweat if a deal goes awry, since they are confident another is just around the corner. A person who is hoping to improve his life significantly by investing may worry that he let one get away.

Ken McElroy suggests that it's best to remain detached, and to work under the assumption that each and every negotiation will result in the potential investor walking away from the deal. The vast majority of supposed deals just aren't deals, he said. The smart real estate investor knows that it is dangerous to become attached to the concept of closing the deal.

Successful MN real estate investors are aware of these facts, not because they were born with this information, but because they've been taught, or else they have taken the time to learn. Anybody can potentially learn to invest as the wealthy do. It simply requires research and practice.