The most successful multifamily real estate investors may gauge success in different ways: by how much freedom they enjoy from their passive income, by the amount of money in their bank accounts, or by some other benchmark. Your own definition of success ultimately depends on your perspective, individual needs, and your ability to meet personal and financial goals. However, common threads are weaved into the overall fabric of investor success: education, experience, passion, integrity, and a strong network of connections. Below, we discuss each of those traits.
Many of the Most Successful Real Estate Investors Invest in Knowledge First
If you want to earn, you’ll have to learn. Multifamily real estate investors with a solid education, a strong investment business plan, and steadfast mentors are more likely to be successful. To build your portfolio of multifamily assets or to become a real estate developer, you’d want to do extensive research, learn how cost segregation studies benefit rental property owners, how to analyze financial reports and data, and possibly pursue certifications and degrees to increase your knowledge. You’d also want to stay current on local markets and industry trends, as well as city, state, and federal rules and regulations. Enter your investment career aware that your education will never end.
Passion Fuels Determination
To become a successful multifamily investor, you’ll need to be passionate about your work. This could mean allocating a large percentage of your time each week to building your portfolio or being a full-time real estate investor. The more time you devote to your investments, the more familiar you’ll become with the ins and outs of multifamily real estate investing and the more determined you’ll be to identify, evaluate, and pursue the best deals. With each property you target, negotiate, and purchase, you’ll build self-confidence and self-control.
Without Integrity, True Success Is Impossible
Beware of so-called shortcuts to success. To reliably succeed in any business endeavor requires hard, honest work, and abidance to unwavering principles. As a multifamily real estate investor, your integrity and ethics will be displayed to any partners and investment professionals you work with. As you develop a solid reputation for fairness and accountability in all of your investment deals, you’ll find that more people will want to work with you and rent from you.
Connect to Succeed
You’ll want to surround yourself with other multifamily investors, financial industry leaders, top real estate brokers, experienced property managers, and other professionals for many reasons, but especially because their insights can be invaluable. Join organizations, too, and participate heavily. Ask plenty of questions and always listen carefully to the answers. The multifamily property market, federal rules, regulations, tax laws, and requirements are always changing. A vast network of people willing to share their knowledge, investment tips, and the top multifamily real estate challenges they face will help you garner perspective and learn how to avoid pitfalls. Plus, some of these peers could eventually become your real estate investment partners.
Never Think You’re Too Smart to Ask for Advice
No one person knows all there is to know about multifamily real estate investing. But every successful real estate investor knows his or her own strengths and limitations. Seeking the advice of investment professionals can expand your knowledge, increase your self-awareness, and, of course, help prevent you from taking steps that will derail your success. This could mean investing with a partner who has strengths that balance your weaknesses or working with a trusted real estate investment management firm. An experienced firm can offer everything from due diligence and risk management to transaction support and property management.
At CWS Capital Partners, we specialize in assisting our clients with 1031 exchanges, acquisitions, repositioning, and development. We own and manage luxury multifamily investment communities in major markets around the country, and we employ a team of experts who can help you hone your investment strategy.
Please contact us to learn more about investing with CWS Capital Partners.
The information provided here is for your general informational purposes only. It should not be considered a recommendation or personalized advisory advice. CWS has made this third party information available from authors it believes are knowledgeable and reliable resources. However, its accuracy or completeness cannot be guaranteed and sentiment may change due to legal or economic conditions.
All investments involve risk including the possible loss of principal. You should familiarize yourself with all risks associated with any investment product before investing.
Advisory services are provided by CWS Capital Partners LLC, a registered investment advisor.
Securities offered by CWS Capital Partners LLC are through an affiliated entity, CWS Investments. CWS Investments is a registered Broker Dealer, member FINRA, SIPC.