The numbers on a deal, among other things, separate homebuyers from professional investors. Of course, both parties look at numbers, but each sees them differently. Investors look at a property and immediately try to determine a return on investment (ROI). In other words; does the after repair value (ARV) justify the purchase price? However, while numbers are important, they are not the only important aspect to consider. As I am sure you have heard before, real estate is entirely dependent on location, location, location. What you may not have realized, however, is that the right location for you is equally important. It is critical for investors to invest in areas they want to. Some would argue that investing in the markets you love is the real secret to success. Above all things, you need to be happy with what you are doing and where you are doing it.
Do What You Love
The concept of doing what you love (and loving what you do) fuels the entire entrepreneurial market. It is icing on the cake when you get paid to do the things you enjoy most. Life is more enjoyable and fulfilling when that is the case. When you enjoy what you do, are you really working? That is a question every investor needs to have answered.
There is a large population out there that truly loves to invest in real estate. Others love real estate as a vehicle that allows them to do what they love. Either way, most individuals can find a part of real estate investing that they are really passionate about. This could be helping home buyers, viewing luxuries homes, flexing their interior design skills, DIY remodeling, or real estate marketing. It could even be something as rewarding as rebuilding an entire community. The point is that real estate can offer more than monetary gains. One of the most rewarding aspects of investing in real estate is that you can do it anywhere. The key is to invest where you want to. For some, it will be in the golden sunshine of San Diego, CA. For others, it may be under the palm trees in Miami. Then there are those that are passionate about Detroit, Cleveland, and New York City. The real winners in the world of real estate investing are those that are investing where they want to live. Having the ability to live where you want says, in more ways than one, that you have made it. And real estate gives you the power to do so.
If you invest in real estate markets that you thoroughly enjoy, there is a higher probability that you will see everything through till the end, and with more passion. Quite simply, it will never be the grind it would be if you were in an area you hated. There is a good chance you will never want to do something else if you are investing in an area you really like. Whether you know it or not, the mindset this generates can help you realize success. Conversely, investing in an area you don’t like will lead to a negative mindset and bring your charisma down. Your happiness is directly correlated to your success. You might as well invest in an area that makes you happy.
Super-Size Your Real Estate Sales
If you are selling something you are passionate about and really believe in, it shows. It’s contagious too. This makes marketing and closing deals easier, and that much more enjoyable. That means more sales, faster sales, and more dollars in your pocket. This concept can be applied to nine-figure condos, magnificent waterfront mansions, rehabbing houses in family neighborhoods, and even wholesale opportunities. Find what you are passionate about, and strive to work your hardest and you will be rewarded accordingly.
It’s really hard to do anything when when your enthusiasm is not authentic. Everything becomes a grind, and people notice. That makes everything more difficult, especially real estate sales. So find your fit, and it will make personal branding, making connections, daily Tweets, and business partnerships that much better.
Of course, investing in an area you love has great benefits. However, that is no reason to ignore hard numbers on a respective deal. The two should go hand-in-hand. If the numbers don’t make sense and deals are not profitable, there is no point in investing- regardless of where the property is. So watch the numbers, stick to sound investment principles, and diversify for asset and income protection. It is when the numbers match in a place that you love that you can truly win.