Investors: Know Your Strengths And Weaknesses
By Paul Esajian on February 24, 2014
There are many would-be investors currently on the sidelines because they fear one particular aspect of the business. This could be anything from managing properties to networking and dealing with private money financing. While you should always try to break out of your comfort zone and grow as an investor, there are some things you just know you aren’t good at. While you work on improving these, you can deal with them now the best way possible. If you aren’t the handy type, you can hire a property manager. If you don’t like networking, you can find alternative methods for promoting yourself and attracting business. Whatever your weaknesses are, there is a solution that can cure your issues. Knowing your strengths and weaknesses will help you decide how to go about handling your business.
Instead of tiptoeing around the problems, attack them head on. If you know you don’t know the difference between a fuse box and a garage door opener, this alone should not keep you away from the real estate business. Of course, there are some basics you should know, but in reality much of these can be learned along the way. If you want to deal with the finances until you become more familiar with the property and the ins-and-outs of rehab, you can go that route. You don’t need to be an expert in all facets of the business to get started or to be successful early on.
On the flip side if marketing is something you enjoy and excel at, make it your focus when you are just starting out. Between social media, web site enhancements and print and letter advertising, marketing is a huge part of the business. You may only have minimal experience in real estate, but if you can attract business you will have something of value. Even if you don’t know how to decipher between the leads coming in you can outsource these leads to a partner and make money off of them. Instead of bemoaning the fact that you don’t know everything about analyzing a deal, you can use your marketing strength to give you a jump start for business and contacts.
If your weaknesses cause or will cause you to lose business find a match that could flip that around. Between your realtor, attorney, contractor and fellow investors it is important to surround yourself with a good team and let them do their job. Finding someone that can offset your weaknesses may not maximize your returns early on but it will help you learn the business and make something where you may have lost the deal altogether. If negotiation is a weakness leave that to your attorney and realtor. If you don’t know how to break a deal down find a local investing partner in your area. Whatever your weaknesses are plan to address them as quickly as possible and in the best possible way. You don’t need to run to the first person that offers advice. Just because you are not an expert doesn’t mean you cannot negotiate.
The sooner you acknowledge your strengths and weaknesses, the quicker you can start to flip those around. Even the best investors have something they wish they improved on or knew more about. Don’t be embarrassed by this or run from it. Just like everyone has a weakness, everyone has a strength as well. Whatever yours is, use it to grow your business.