There are two important investing rules that every real estate entrepreneur can’t afford to break.
Making money fast isn’t difficult in the real estate industry. It’s not brain surgery, and there are plenty of short cuts. However, those real estate investors that want prolonged success, and want to stay out of trouble, are advised to invest in their real estate education. Establishing a sound foundation through proper education is one of the most important real estate investing rules. However, there are more that coincide with this education.
According to a new book, co-authored by Michael Raynor, a director at Deloitte, there are 2 investing rules that will propel your business further than it has ever been. After having analyzed a giant database of companies with a team of researchers, and tracking their performance for almost 5 decades, the book boils down what it takes to be an exceptional company. To establish a real estate investing empire follow these rules:
Commitment to being better, rather than cheap, is the first rule every business should live by. If you try to win by competing with your peers on price, you are doomed to pricing yourself out of business, and any success will be short lived. You are also prone to being booted off your pedestal at any moment by a new player or startup that is simply better than you are.
The second rule focuses on improving and increasing revenues versus lowering expenses. Of course, there are exceptions to this one. No real estate investing business should bite off more overhead than they can handle. At some point, expenses can only be reduced so much, yet revenues can always be pushed up. The key is the spread between the two numbers.
Commit to excellence in your real estate investing business, keep costs down and push up revenues.