The real estate market is highly competitive, and to make an impact, you need to stand out from the rest of the crowd. Regardless of whether you’re a developer or an investor, there are a few crucial skills that you need to demonstrate in order to find success in the industry.
To help highlight what people should focus on mastering, eight members of Forbes Real Estate Council, below, discuss some of the essential abilities that developers or investors need to have.
1. Analytical Skills
Analytical skills to properly analyze an asset being considered for acquisition financially are a critical skill set a successful real estate investor or developer must possess. They should also be able to create a business plan and proforma for that asset and calculate expected returns. – Rod Khleif, Lifetime Cash Flow Academy
2. Market Knowledge And Management Skills
Investing in real estate is a risk like any investment, but with market knowledge you will be able to understand the risk and weigh it against the return to be able to make the best decision when investing. Another skill that is necessary is definitely management skills, especially for the beginning investor who will have to create a team of contractors and other service providers and get them to meet deadlines, overcome unexpected challenges and continue to be productive. – Cyrus Mohseni, The Keystone Team
3. Seeing What Others Cannot
The ability to see what others can’t see is essential. Sometimes the biggest single thing that makes an investment or development work is the vision of the people taking part in the deal. The ability to see the potential in a deal when everyone else can’t is one of the greatest strengths an investor and developer can have. – Dan Dutton, OMNE Partners
4. Understanding Value Drivers
Identifying currently undervalued assets is key to any successful investment. You make your money on the acquisition. Most fundamentally, understanding value and value drivers is critical to success here. – Brad Savage, Apprise by Walker & Dunlop
5. Pricing Analysis
Price is the number one driver of sales. A failure to properly understand current market value and future trends will hinder any sales program or investment portfolio from the outset. – Jeremy Finkelstein, Harvey Kalles Real Estate Ltd., Brokerage
6. Knowledge Of All The Relevant Numbers
They should be knowledgeable on all the numbers—cap rates, current costs of construction, holding costs, hazardous materials remediation costs, etc. Additionally, they should have a trusted realtor to objectively advise them so as to remove as much impulse or emotion from the process as possible. – Jon Larrance, Perry & Co
7. Knowing The Market
Investors and developers need to know the market for the type of real estate investment you wish to do. Understand your numbers and ability for ROI. Plan projects within the scope of those parameters. – Timmi Ann Ryerson, Real Business Management
In real estate, a critical skill you should hone is developing a vision for the future. With this in place, all you have to do is chart your path on how to get there. – Kael Goodman, Marketproof, Inc.