Many real estate investors ended last year on a high note and can look back on their deals from the past year with mostly positive sentiment. Now it is time to reflect and see what valuable lessons you have learned 2017, so you can use them to improve your business and investments in 2018.
Some of the most profitable real estate investors resolutely recommend reflecting and learning from previous actions. Sterling White is one of those investors. He is the co-founder of Holdfolio – a real estate crowdfunding platform, and an exceptionally successful real estate investor. Here are Sterling White’s six biggest lessons from investing in 2017:
There is always room to grow – Still, there is always room to grow as an individual. It’s important to always keep expanding. That may be outwards to new markets, using new strategies and deal structures or new types of assets and properties.
Multifamily is so much better – One of the big realizations I’ve had over the past year—with my first multifamily purchase, among others—is how much more efficient it is to acquire and own multifamily property compared to single family homes. I’ll still hold and invest in single family, but I have started doing more apartment building deals and am seeing great results from it.
The real estate market has changed dramatically – The real estate market has taken a huge shift, even compared to a year ago. The retail sector is experiencing the rapid changes with the way consumer behavior is shifting towards the online platform. That does bring opportunity; investors just have to acknowledge the real opportunities may be different than in the past couple of years.
It’s vital to leave room in your numbers for changes – You simply can’t buy deals with the thinnest acceptable margins and hope things will work out. That’s the path to negative cash flow, negative equity, and disaster. Whether you end up having to bring in professional property management, fixing unexpected repairs, or paying a big new tax bill, you want to have an extra cushion in your numbers.
It’s a privilege to have a great network – Over the last year, I have definitely benefited from being able to engage with experienced investors on BiggerPockets. I am also incredibly grateful for those who have read and shared my writings. It’s an honor to have this platform to help and bring value others.
A great team shouldn’t be underestimated – Having good partners and team members—and knowing how to work with them—makes all the difference in your success and ability to help others.
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