The business of real estate is full of little rules that someone looking from the outside would never notice. These aren’t the small superstitions that are present in so many other professions and industries; they are the real dos and don’ts of an industry where millions of dollars are circulated each day.
When Damon Woodward talks about them, they sound like a list of best practices. Damon is a great person to ask about, though. Having been in the industry for only a few years, he’s managed to position himself as the head of two highly successful companies and as a person with a portfolio of properties many would admire. Here are the dos and don’ts he’d like to point out.
Do Learn to Calculate the Value of Property After Renovating It
There are many ways to stay afloat when flipping properties and one to surely sink: paying too much for it. Overpaying is a sure way to put entrepreneurs in the red, and it typically happens because the entrepreneur cannot figure out how much money the property will be worth to them when they finish the renovation. So anyone looking to enter the field should learn how to calculate the value of the result and avoid overpaying for a property—a major “don’t.”
Don’t Listen to Real Estate Agents Blindly
No one can say that there aren’t some fine people among real estate agents. The problem with them, however, is that their interests and the interests of the investors often lie in different places. This can lead to conflicting interests.
For the real estate agent, the main job is to sell. They get their cut from the sale, and they aren’t too invested in anyone making a good flip down the road. Real estate agents operate in the here and now. The investor who wants to flip the property is also looking at the here and now, but they are looking at it to see if it has the potential to bring a profit after some renovation.
In this case, the “don’t” is paired with a “do,” too; do learn to double-check whatever information the real estate agent provides. That’s the kind of thing that saves investors from bad investments.
Don’t Get Into It Alone
People go into real estate for many different reasons. Ultimately, though, they all do it to make money. The likeliness of that happening—making money off of real estate investing—is directly tied to the quality of the coach the investor has in their corner.
It cannot be stressed enough how important learning from people who have been there and done it is in this business. People will have a very hard time finding an entry into the industry without coaching, and chances are they won’t stick around because the industry will chew them up and spit them out. Coaches are there to provide the training and support that’s necessary and to open a few doors along the way. There are few things more valuable than that knowledge in the field of real estate investment.