Of course, no investor enters the Edmonton real estate market with the intention to fail. Yet, regardless of how hard they try, many find themselves attending endless networking events and meetings with nothing to show for it in their bank accounts.
What exactly does it take to become a successful Edmonton real estate investor? How do highly successful real estate investors differentiate themselves from the rest?
The answer lies in these eight simple habits:
Habit 1 = They Know Success is a Decision.
The first step to becoming successful in Edmonton real estate is making the decision to do so. Regardless of whether you have minimal experience or money, adopting a decision-driven mindset is critical if you want to thrive. For instance, if your goal is to invest in one or two properties every year, make a plan and decide to stick to it, no matter what.
Habit 2 = They’re S.M.A.R.T.
Did you know real estate investors who set defined and realistic goals are ten times more successful than those who don’t? Why? Because they use the SMART system to drive their investment-goal success:
Specific – Goals are good, but specific goals are better if you hope to meet your larger investment objectives. For instance, “I want to start making money by investing in real estate” (non-specific) vs. “I want to purchase one fourplex every year until I can generate enough passive income to replace my current salary” (specific).
Measurable – Simply put, measurable goals are objectives that can be quantified and compared, allowing you to assess your improvement and stay motivated. Gross income, net income and number of deals are examples of benchmarks you can measure against to track your progress.
Attainable – While your goals should be challenging, they should also be attainable. For example, setting a goal of $200,000 on your first real estate deal may not be practical. Securing a lucrative Edmonton rental property with fantastic cash flow and appreciation potential, on the other hand, is both reasonable and reachable.
Relevant –To determine a goal’s overall relevance, ask yourself why you want to pursue that particular goal and how it will help you achieve your overall career objectives. It should also align with the current state of your real estate investment efforts. For instance, stating you want to be the top real estate investor in Edmonton when you’ve yet to purchase your first investment property would not be considered (currently) relevant.
Timed – When it comes to real estate investing, timing is everything. As such, the most successful investors know deadlines are detrimental to pushing their business forward. “I will purchase as many properties as possible this year” is an untimed goal offering no deadline or end date. “I will purchase two rental properties within the next twelve months,” on the other hand, is both timed and measurable.
Habit 3 = They Treat Their Investments Like a Business
Just like any business, real estate investing takes time and effort. This includes identifying your short and long-term goals (see above), while working backward to understand what actions you’ll need to take to achieve them. Successful real estate investors will also rely on a solid business plan to help them stay focused on their objectives.
Habit 4 = They Know Their Niche
Developing expertise and understanding in a specific area is yet another critical component of investor success. Are you interested in investing in residential or commercial properties? Would you prefer to focus on single-family or multi-family real estate such as duplexes or townhomes? Because Edmonton real estate is so multi-faceted, we recommend focusing on (and mastering) one area before moving on to the next.
Habit 5 = They Invest in Multiple Income Streams
Successful investors also look for properties that will deliver multiple income streams for a single investment – such as an entire duplex (both units) or a single-family home with a rental income suite. Ultimately, this puts you in a position to generate double the cash flow and minimize any expenses associated with an unoccupied unit.
Habit 6 = They’re a Turtle in Fifth Gear
Real estate investing is the perfect example of how “slow and steady wins the race.” Instead of spreading yourself too thin through multiple investments, stick to one or two properties at a time, pay them off as quickly as possible and then move on. This will:
- Minimize your financial risk.
- Allow you to build wealth at a steady and predictable pace.
- Give you time to focus on and refine your investment strategies moving forward.
Habit 7 = They Stay Educated
Another essential habit of successful real estate investors? They never stop learning. Not only is it necessary to stay up to date with current real estate market trends and regulatory changes, but it’s also vital to surround yourself with like-minded people from whom you can learn new approaches, techniques and strategies. Here too, we recommend connecting with those who are already highly successful, as they will encourage you to keep pressing forward (as opposed to remaining stagnant in your comfort zone).
Habit 8 = They Take Action
Of course, learning is an integral part of the process, but unless you take action on what you’ve learned (and the goals you’ve already defined), you’ll never achieve the results you want. Taking action is also accepting that you must maintain the decision-driven mindset we mentioned above, despite any obstacles or setbacks you may face along the way.
Are you interested in learning more about investing in Edmonton’s lucrative real estate market? Contact our team of experts! We also invite you to download your free copy of our comprehensive guide How to Create Amazing Wealth: A Beginner’s Guide to Investing in Real Estate. In it, you’ll learn everything you need to know about:
- The benefits of investing in real estate
- Real estate investing basics
- Finding a niche
- Organizing your finances
- Finding the right neighbourhood
- The advantages of multiple income streams
- The exclusive Terry Paranych Turtle in Fifth Gear system
- And much more!