What is do you think is the single most important skill as an property investor?

[always_learning]

I was thinking about the most important factor that makes the difference between the average investor and an excellent property investor.

For example the most important thing in excellence in IT support is in my opinion "speed". ie people want answers/problems/systems fast...thus my time is best spent working out how to "give't to'm quick!"

This is a poll but dont hesitate to include your opinions.

 

[Bill.L]

Hi all,

A_L, My answer to the question is pretty much the same as every other human endeavour.
Practise and persistence. I don't know where they would appear in your categories, but to me they would be the most important.

bye

 

[always_learning]

Whilst failure to perform at average levels in any one of the above areas could be bad news. Given all things being equal except for one key point of excellence, then I would choose "Excellence in Buying" as the skill I believe has the greatest benefit for a property investor.

Finding and negotiating a house under market value, getting the good deal, instant equity is what I believe (observation) makes the biggest difference.

 

[Aceyducey]

Too hard to pick just one!!!

It's a combination of skills always and having one of these attributes alone won't get you there!

(though there are a number of different combinations of the different skills that will - there's no one right answer)

I chose unlocking hidden value - cause that's what an investor does everytime they see the potential & chooses to buy - below the REAL market price....

Whether it's a reno, subdivison, repurposing, a change in the local infrastructure, a shift in local lifestyles or some other factor that will make the property's value (both cg and rental) grow above average rates - the investor see the value that is hidden to others and acts upon it!

It might be more interesting to re-run this poll with people allowed to pick as many options as they need to describe the necessary skill 'package' they see as essential for successful property investors.

Cheers,

Aceyducey

 

[spark]

MHO is that buying below market value is the most important element in every market condition, booming or falling, and for all strategies - holding long term or reselling. When you get more for your $ - you are better than others. And vice versa.

 

[see_change]

Sorry guys

For me the answer is obvious .

All of the above

See Change

 

[always_learning]

In the book 80/20 Principle by Richard Koch Richard argues (I think successfully) that we should find the difference that makes the difference for us and then focus our energy 100% on it, and get others to do the rest.

For example everyone can "wait" for the market to increase. Ocean View in a recent post said he made 38 offers last week, I have to admit that havent made 38 offers in my life, actually not even 8. Ocean View says because of making bulk offers he was accepted by 2 of the 38 for 35% under market value. I just think ...this is excellence in action, or at least the 80/20 rule in action, Ocean View doesnt even inspect the properties, he gets others do do it for him...again he focuses his time on what he believes makes the biggest difference. (some would argue that Ocean View is trading not investing).

Another way of thinking about my pole, would be to ask "if I could only perform one aspect of IP investing at an excellent level, and outsource the rest, then what would it be?"? All are important, but what can I do best that makes the biggest difference?

 

[OPM-addict]

38.... did you shower after dealing with all those REA

HI A_L and sea change,

The most important part of getting that next IP is defineatly find the value when others cannot. I missed out on two brilliant deals in one week. But I am confident I will find others.

Like SC if you put offers on 100 and only 10 come back to negoitiation and you only purchase one undervalued IP then you have successfully accomplished being IP investor.

To be focused real estate investor knowledge is everything. As you gain more knowledge you limit the fear of the what if...'s so you a free to invest more. Simply, you have to be in market and willing to commit.

Respect, Peace, Out.
OPM-addict.

Commitment is the story of Bacon and Eggs.
The chicken was willing but the pig commited.
- Robert K

 

[Peter_Tersteeg]

All of the above. You also need persistance.

 

[jahn]

Hi A-l
I think it would be possible to be excellent at any one of a number of the options, and be successful
For e.g Being able to negotiate, may be vital for one who can, and does, but if he can, but doesn't, then he would fall into the category of average.
So my version of what makes the difference, is the determination behind the individuals specific skill.
How determined are investors with 20 properties (not me ) and people with 1. They may have the same skills, but not the same goals, needs, driving force, to ensure they hone their skills, and continue on.
jahn

 

[geoffw]

Originally posted by jahn
How determined are investors with 20 properties (not me ) and people with 1. They may have the same skills, but not the same goals, needs, driving force, to ensure they hone their skills, and continue on.
jahn

The number of properties will probably give an excellent idea of negotiation skills, and knowledge of all the nuts and bolts.

But the value of properties may well give a different picture.

A person with very few more expensive properties has perhaps laid a lot more on the line each time- but obviously has not done it very much. And, proportionally, the overheads would probably be rather smaller. Fixed costs (eg loan application fees, legals) are smaller as a percentage. Commissions and LMI might also be less expensive proportionally. The legwork for a place worth $100K may not be too much different than for a place worth $800K.

Just a few random thoughts.

 

[simonjulie]

What is the biggest factor in excellence in IP?

All of the factors mentioned may be used to excel in IP but before you excel you must first begin. That's why no. 1 gets my vote.

Julie

Audentes Fortuna Juvat
Fortune Favours the Bold

 

[Robyne]

The thing I love about investing in property is that, as I see it, even if you are NOT excellent in all the above you can still make good money just being satisfactory and working on your skills. You can even make mistakes and still make money.

For example if negotiating the best price is not something you are great at and you end up paying 5% above market value for the property but you get good financing, buy and hold for a while renovate to increase equity and you've bought in a good area with good growth, a few years down the track you are still much better off than if you never bought the property in the first place.

Please note I am not advocating buying properties at a premium!

Robyne

 

[landlubber]

Without a doubt the greatest "skill" in this game is the ability and the willingness "to take action". (Maybe it's really to overcome the fear and have-a-go.)

I have lost count of the number of the people who have watched from the sidelines over the years, despite encouragement , depite seeing the prices rise, depite watching their own neighbourhood double in value over a few years.

Then there is a another group, who has bought just "one" and then frozen there ....and watched that "one" increase in value ...and not gone on to 2,3,4 etc .

It could be said ...don't forget all the theory , don't forget what you learn here or at seminars ...but , most of all , don't forget to "jump in" and buy something !!

LL

 

[Robyne]

I just re-read Jan Somer's article in PI magazine and she said that she thinks the ability to do the number crunching is a vital skill in property investing. (paraphrased)

Of course the actual getting out there and doing it is vital too, because nothing else matters if you take no action at all.
Robyne

 

[Flex]

Without doubt getting started is the big one, then the patience to wait until you can do it again. In the mean time, overcoming the doubt that you are not doing the right thing or your money would be invested or spent better elsewhere.

Flex

 

[investor]

Ok let's see now

1. Excellence in taking action: Just getting out there and doing it.

What ? How can you excell in taking action ?
You either have the balls to do it or you don't.


2. Excellence in waiting being slow and steady, time in the market not timing, never sell.

How can you be good at being slow ?
Slow and steady is for the pesioners.
Never sell ? why not ?
Selling is good as long as you always stay in the market. There is more money in trading than buying and holding, but always hold ips.


3. Excellence in where: Finding the best areas, researching the best locations

This is not very hard to do with all the data available.


4. Excellence in price negotiation: Buying at a low price under market value. Instant equity.

Haha anybody can negotiate, we do it when we buy a car, at the electronics store even at the markets. No need for someone to excell in it, we all know how to do that.


5. Excellence in finding hidden value: And unlocking it (renovation)

This is very important. It is here you get your instant equity and not everybody can do this.


6. Excellence in financing the deal: Break the limits on normal banking policies.

RUBBISH- That's what a broker is for.


7. Excellence in when: Finding places/areas/locations/cities about to boom and buy before the boom.

RUBBISH- If you missed out you just didn't start early enough and went with the herd. Looking for places ready to boom and buying hoping for a boom is pure speculation and crystal ball stuff.


8. Excellence in leveraging others skills: Finding good buyers agents, mortgage brokers, property managers

RUBBISH- Buyers agents ? you're joking aren't you ?
Mortgage brokers ? word of mouth, if you're just starting out otherwise when you're set, you're set


9. Excellence in goal setting: Setting goals and working towards them.

What excellence in setting goals ?
I groan everytime someone mentions that they have written down their goals and it's 20 pages long
Think of where you want to be, what you want to achieve and don't stop till you are there, SIMPLE.

IMO the most important aspect in becoming successful in property is spotting a bargain, whether it's unlocking hidden value or just plain cheap.
This can be only achieved if you have the KNOWLEDGE to do it, having research your particular area extensively.

The most important aspect in property is BUYING LOW (and possibly SELLING HIGH if that's your thing) everything else is EASY.

Regards

Investor

PS. MERRY CHRISTMAS

 

[Tibor]

I agree with SC, all of the skills are important, based on good financial education and a willingness to take action and do not let doubt(sters) to stop you. You might make mistakes (RE is usually quite forgiving) and you learn from them and refine you rindividual strategy while you progress on your journey.

Just the 2c.

Tibor

 

[jaypster]

Hi,

All these skills are extemely important. But one thing i have seen a lot with people i know is that if you do not have the ability to stay focused you are finished.

Time and time again i have seen people give up when the going gets tough.

Persistance is everything.

 

[Robyne]

Anyone can negotiate? I don't think so. Maybe like anyone can play tennis or anyone can knit. These things, like just about any skill in life, aren't particularly hard but they must be learned and some people do them better than others. Negotiating is the same.

Some people don't even know it is a skill they need. I know, for example, intellegent people who buy a new car by walking in to a car dealership and asking the price. That's it. No negotiation. That's what they pay.

Robyne