Successful Real Estate Investing takes 5 key elements

The 5 C's of Successful Real Estate Investing

Competence of Subject

It would seem to be a given that someone striving for success in any business or investment strategy would take the time to become competent in the inner workings before starting out.
At a minimum, becoming competent in the basics would be a must. Joining a
local association or group of real estate investors would be a great
beginning followed by absorbing as much education material as possible.
There are dozens of books on the real estate shelves at your local book
store that would be a great place to start. Become a sponge and take in
as much information as you can to become competent in the specific
terms, ideas and concepts of investing in real estate.

Control of Emotions

Have you ever heard the saying that "...in the end, Emotions control the day!" When you are investing in real estate, that can never be the case. You must be in control of your
emotions with every decision you make as an investor. If you are
investing with a strategy of fix n flip, you must never allow your
emotions to influence a decision on whether to buy in a particular
neighborhood, a particular property or settle for a price point higher
than your cut off point. the same thing goes for investors buying for
long-term hold. Never allow emotion to influence a decision such as
lowering your monthly income desired because you really like the
property. Developing solid financial goals and the path to them is a
must for an investor and you can never allow emotion to enter your
decisions and alter those goals.

Comprehension of Market

One of the dangers of becoming more competent on the strategies of real estate investing in general is the possibility that all the concepts you
are reading about and learning may not apply to your particular market.
This is where surrounding your self with like minded individuals and
joining an investment group or association is so important. Follow those
who have been successful in a particular market before you. Research
your market, drive the neighborhoods you want to invest in and ask
questions of those who are having success in your market. You absolutely
must know how the investment strategy that you plan to employ interacts
in your particular market. Comprehension of your market and developing a
plan based on what works instead of what you want to do, will be a key
to success.

Consistency of Action

This is an absolute killer for many beginning investors as well as investors who get a taste of success and strive for more, more, more. Early on as an
investor, you must develop a strategy for investing. Are you going to
buy & hold a property for long-term return or are you looking for a
property that you can fix and flip. Your strategy can always be modified
but not your basic actions for success. Most entrepreneurs will tell
you that they achieved success by doing the basics consistently and
developing the best habits early on. As an investor, whichever strategy
you choose, there will always be actions and steps that you must do
every day, every week or every month. Being consistent in your actions
will be the single biggest obstacle you will face. Overcome it and
success will almost surely follow.

Character

I would not think that this characteristic needs much explanation. There are always short cuts and there will always be someone, somewhere
offering the "magic formula" for success. Do not buy! Do not take the
easy road, do not take the short cuts. I never said to take the road
less traveled for the experience either. Just stay true to your inner
principles and always treat a business deal as well as all of your
relationships the way you would like to be treated. If a particular deal
looks too good to be true, walk away. There are no actions that you can
take that can ever repair character damaged from within. The great
thing about deciding to invest in real estate, is that there are always
other opportunities waiting to be found. You do not have to sacrifice
your character for any deal!

I am in an enviable position of dealing with investors from all over the country who have all levels of experience. I have seen investors fail and succeed because on some level, they were either missing some of these characteristics or they had them on full display and made great use of them.