The real estate industry can be competitive. Getting started in the field can be intimidating, and even the most confident and seasoned professionals out there must continually hone some core skills to stay relevant.
To help you truly shine in this industry, we asked members of Forbes Real Estate Council to share which skills are particularly critical to the success of real estate investors or developers.
1. Understanding The Human Experience
A great real estate developer is one who recognizes that the whole can be exponentially greater than the sum of its parts. A building has the potential to bring value to those who inhabit it, the community that surrounds it, and the lives of all who come into contact with it. A developer who understands this—that the way space is utilized can shape the human experience in immeasurable ways—is one who has the power to bring about positive social impact and community transformation. – Benjamin Katz, Haven Coliving
2. Analyzing The Bigger Impact
Anyone in real estate needs to be able to not only analyze the property on paperwork, but also look at what the ancillary impacts will be. For instance, will you be spending more money in municipal red-tape (hidden costs)? What is the full impact of having this investment? Since real estate is not as liquid as a stock or bond, entering any one market or neighborhood should have more than an “on paper” review. – Christopher Long, Radius Realty
3. Making Informed Decisions
It’s easy to get distracted by vanity numbers or vanity metrics when looking to invest. Instead, focus on disseminating the available information and analyzing it thoroughly to be able to make a more informed decision. After you understand the options and the risks involved, follow your gut confidently. Remember, no good can come from you deviating from the path that you were destined to follow. – Rodolfo Delgado, Replay Listings – Apartments for Rent in NYC
4. Mall Mapping
Successful real estate investors need to have to ability to do something called mall mapping. When you go to a new mall for the first time, you always locate where you are, then look for the location you want to find, then create the shortest and simplest path between the two. Real estate investing is exactly the same. You need to first be honest about where you are, then know exactly where you are wanting to go, then you create the simplest, and most effective path to get from here to there. That may mean deferring short-term benefit for long-term gain, but it also means you have a better shot at mitigating risk, and achieving success. – Kevin Clayson, Done For You Real Estate USA
People must understand how to effectively delegate. If they can’t let go and let others do their job, or they want to micromanage every minute detail, they will lose. – Tony Acosta, Real Team Realty
Grit is that ability to get knocked down and keep getting back up again, over and over. It’s the ability to quiet the voices in your head and tune out the voices of everyone out there telling you that you can’t do it, or it can’t be done. Grit is the difference between those who make it, and those who quit and go back to selling mortgages or being just a realtor. – Matt Motil, The Marie Paul Companies
Have exceedingly high levels of patience. Real estate transactions, for the most part, never happen quickly and it requires a high degree of analysis and underwriting to properly execute an investment or development transaction. – Jecoah Byrnes, National Healthcare Realty
Getting out of the box puts you in the right place to find the unique deals that are highly profitable and puts you where everyone else is not. It keeps you from being part of a herd mentality – Mike Mcmullen, Prominence Homes
Discipline, along with the ability to analyze elements that will seriously impact a property, are all highly important. When analyzing an investment property, people need to be objective and navigate by the numbers without the interference of personal preferences. This means they need to apply a disciplined approach, use realistic comparables and research the trend in values, vacancies and listing volume, along with the other factors that could have an impact on their goals. – Michael Daniels, Rental Technologies LLC