Developing or investing in the real estate market can be financially rewarding. Yet, finding success in the market requires knowledge about the liabilities inherent with any real estate or property-specific work. There is perhaps no better way to gain the information you need than by speaking with those within your industry, particularly about the pain points and hazards buyers and sellers should strive to anticipate and avoid — and the skills needed to identify where trouble may lie.
Real estate developers and investors who have had success often do so through having faced — and overcome — numerous trials, which makes their experience an excellent resource for those trying to break into the real estate world. To help both those just starting out, as well as those seeking advice for problems which have arisen, we asked these members of Forbes Real Estate Council to share some of the critical skills anyone looking to succeed in real estate should possess. Here’s what they had to say.
1. Understanding The Underwriting Process
A critical skill that is needed is the ability to understand how to underwrite the project and have a clear understanding of how the project will meet the criteria of your capital partners. Before starting the entitlement process, it is paramount to have an understanding of what the city’s vision is for the piece of property to be developed. – JP Moridi, The Moridi Team
2. Knowing The Market
A good real estate investor or developer should always know the market they are working in, both in demographic and location. Understanding your consumer, competition, local restrictions and regulations will result in a more profitable business in the short and long term. – Alek Carrera, Alek Carrera Estates
3. Utilizing Insider Information
Investing in stocks or bonds is a mostly level playing field with all participants having access to equal information. Real estate investing runs contrary to other investment platforms. Insider information is not just permitted, it is a requirement for success. A real estate investor’s success is dependent on their ability to receive, process and act upon market information before others. – Bethany Babcock, Foresite Commercial Real Estate
4. Understanding Your Consumer
You need a keen understanding of the consumer. The product must conform to the consumer and understanding critical demographic and psychographic characteristics can determine the feasibility of a project and help customize its features. We often see builders design to a perception of universal appeal, only to find a project stripped of its character. – Jeff Brown, Tahoe Mountain Realty
5. Identifying Solid Deals
The primary skill is the experience to identify a solid deal structure from a 360-degree view. What are the critical components? How do they fit together into a cohesive plan? If a team needs to be put in place, who are the key members of that team to create a winning formula for success, not just financially, but for the mutual benefit of all parties? – Terry Burger, Nice Guys Buying Houses
6. Communicating Intent
Real estate investors must have substantial communication skills to achieve success. Being able to convey one’s intended outcome and transmit it throughout the various stages of the investment life-cycle is vital for any real estate investor to flourish. – Adrian Provost, LEVEL | Compass
Read the article on Forbes.com here.
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