4 Best Practices for Real Estate Investing in 2015

With 2015 just around the corner, we thought it might be fun to think about ways for bring a fresh perspective to your real estate investment endeavors. Starting off on the right foot is the key to making 2015 your most successful year yet. Consider these best practices:

• Review and Recap. No matter your level of experience in real estate investment, you will benefit from taking a good look at how 2014’s investment opportunities progressed or panned out. Taking the time to do this always reveals areas that need improvement as well as your greatest strengths. Ask yourself these questions:
  1. Did I have a clear and easily executed plan?
  2. Did I accomplish the lion’s share of the goals in that plan?
  3. What limited me from achieving certain goals; were there factors out of my control, behaviors or habits that impacted my investments? (Of course, it’s best to focus on the latter two for improvement and not waste your energy on addressing the former).
  4. What motivated my investments in 2014 and will that change in 2015?
  5. What were my greatest successes and how did I achieve them?

Remember to celebrate your successes and also work on creative solutions to limiting factors!

• Find a Passion Project. Theoretically, most of us invest in real estate because we are passionate about it as a way to build income or wealth. But, face it: sometimes the effort can feel a little stale. That’s why it’s important to find an investment project that gives you new energy. Maybe this will be your first year to rehab a house. Maybe you’ll venture into a multi-family investment. Maybe you’ll try your hand at high-end rehabbing—like Elizabeth Ellsworth, who turns a pretty profit with her pretty homes. If that sparks your interest, keep four of her best practices in mind:
  1. Consult with realtors and engineers throughout the project, to ensure the highest resale potential.
  2. Fall in love with the house you plan to rehab. If you wouldn’t live in it yourself, it might not be a passion project for you.
  3. Don’t let the outcome of the rehab cloud your pricing strategy—in other words, you can love the finished project, but don’t fall into the trap of emotional pricing.
  4. Similarly, don’t be tempted by a house that has defects you can’t fix, like a poor location or zoning restrictions.
• Hone Your Listening Skills. Wise investors know how to listen for deals and solid opportunities. They discover them in conversations with residents of a target investment neighborhood, sellers and property managers—to name a few. Good listening isn’t just about talking less; it’s also about asking the right questions and knowing whom to ask. Get to know the area you’d like to invest in and the people attached to it, who might have some surprising insight for you.
• Reconnect with and Thank Your Allies. It’s just good business to show your appreciation to your investment allies and to check in with them about upcoming opportunities. The New Year is a great time to do that.

Hopefully, we’ve inspired you to seize 2015, before it seizes you.