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Turnkey Real Estate Investing

3 min read

How to Take Your Investments from Average to Exceptional

Tue, Jan 17, 2023

Man sitting back contentedly on couch

If you’re a go-with-the-flow real estate investor, you’ll never reach your full potential. You can be perfectly comfortable with average results, but is that really what you want to be? Average? 

If, instead, you want to see exceptional results – being all you can be and building a truly world-class portfolio – you’ve got to do what other investors don’t.

Step beyond average. Trust us, it’s doesn’t take as much work as you think: just smart, intentional, and effective strategies that make all the difference in the world.

5 Steps to Staying Ahead as a Real Estate Investor

Step 1: Use leverage wisely

For the real estate investor, leverage is one of your greatest advantages over any other kind of investor. This leverage comes in two forms: financial leverage, such as that from a lender, and professional leverage from contractors, managers, and advisors.

Are you using your leverage wisely? There’s a balance to strike between how much money you’re putting down versus how much leverage you’re using. You don’t want your debt-to-income ratio to grow uncontrollably, for one, but you also want to make the most of other people’s money. How your leverage stacks up against rent payments, mortgages, and interest rates makes all the difference in the world.

Additionally, never be afraid to turn to the pros. Real estate investors never have to do it all alone! Utilize the professionals at your disposal. Avoid costly mistakes by leaning on the know-how of the people who have been there, done that. It’ll save you headaches, heartache, and precious capital!

Step 2: Learn how to invest in any market conditions

Fair weather investors may see success for a season, but they’re not building something that lasts. Investors that see long-term, lasting success are those who not only endure tough economic conditions, but they find opportunities despite them. You become exceptional when you see that every stage of the market cycle offers something…if you know where to focus your energy!

Step 3: Diversify—but know your strengths

Portfolio diversification is key to success. Diversification not only increases our streams of income, but it mitigates risk by spreading it out among multiple properties and investment markets. This isn’t to say that investors should take anything that comes their way in the name of diversification. For one, you want to play to your strengths and the strengths of your team.

You should have a niche – so stick to it. This isn’t to say you can never branch out, but the bulk of your portfolio should be focused, targeted, and specific. It ensures that every piece of your portfolio serves a specific purpose.

Step 4: Build a team that's on your side

We can’t stress the value of team relationships enough. As a passive investor, it’s too easy to coast by with surface-level acquaintanceships at best. After all, building relationships takes time, effort, and a degree of vulnerability that we’re not all willing to sacrifice.

When you have trust with your team, though, it makes everything work that much better. Trust means that your team knows what you want, and they have your best interests at the forefront of every decision.

Pay attention to those updates and check-ins. Utilize your time to ask questions, seek clarity, and solidify your goals. When you express these things to your team, they just might be able to build your portfolio without so much input from you!

These professional relationships offer leverage that you can’t ignore. But you make the most of that leverage when you’ve established a real, valuable rapport with your entire team. It’s only then that you can function together in perfect sync.

Step 5: Don't get distracted

Distractions are a big reason investors fail. At the very least, it leads people off-track. In the world of real estate investing, distractions come in many forms: hype over the next hot market, the newest technology, the flashiest investment firms. Don’t allow emotions or even excitement to distract you from what you know works. Sure, take risks that you’re comfortable with. But take those risks knowing that you’ve already build a firm foundation through reliable, predictable and yes – boring – investments that you know you can count on.

 

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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.

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