Most Important Skill to be Successful Property Investor

I have been asked by a lot of people what the secret to property investing...

They all think it has to do with research, getting into areas with infrastructure going in, rising markets, etc.

The one skill which I rate above all is the ability take action. This simple skill requries one to analyze the data and pull the trigger. I have met a few people on PC who are grappling with this...they toss and turn...even when presented deals. This in itself is the key if one does not taken action then you will never be successful. They always seem to have an excuse..which unfortunately will cost them money.

This the most important skill. Unfortunately...this is also why people will go to project marketeers thinking the experts will look after them.

I too grappled with this...the one thing is for sure as you buy more...you gain more confidence. In a rising market...you also make less mistakes. One of the reasons why I do not suggest Sydney for most people.

 

Agreed–decisiveness is the absolute key.

I was lucky in that I wasn't ready to buy when I started researching investments. I saved like mad over a couple of years while exploring my options, different strategies, asking 100,000,000,000,000 questions, reading books, watching videos, talking to investors and researching suburbs/ABS stats etc.

Not sure how long I would have been stuck in a muck of analysis paralysis had I the means to invest from day one.

 

Agree. And for those starting out, if they're at risk of never buying due to analysis paralysis, it may be better to just go buy something, even a dud. As long as you're able to learn, pick yourself up and keep going. In this case it's better to fail fast and learn fast. If you buy in a rising market like Brisbane it helps limit your losses.

 

Spot on...analysis paralysis.

I have inexperienced chasing the mythical 7%...whilst solid buying opportunities with great growth potential passes them by in Brissie. Even in Logan is this getting harder....

 

I think that you need to be careful how you weight the various advice that you'll receive. Buying a heap of properties at 97%+ lend in the early to mid 2000s, anybody would have made money. And good luck to the people who did that - I made money this way myself!

But the skills needed to make money over a lifetime of property (or any other kind of) investing are varied, and that strategy won't work now, so you shouldn't try to emulate the plan of people who made money in a very different climate.

 

That is correct...due diligence is required...but when the deal is good people need to jump on it in a rising market.

At the moment...Brisbane is moving well.....it will be hard not to make money with some level of research. It is the way cycles work. Having said that you can always buy a Lemon this why due diligence is important...but you need to act to keep going and realise gains later.

 

I agree sash. In April 2013 I was looking at units near the Parramatta area. Driving home in an area I knew well and saw a unit that was open for inspection. Went in and saw an old work colleague who was looking to buy a unit for his child as an investment. Asked what he thought about the unit he said he liked it but wasn't sure about it. I put an offer in that afternoon and picked the unit up for 15k under asking price and he is STILL LOOKING FOR ONE THAT HE LIKES.
Unit has been a cracker.

 

I personally think people and communication skills. If you have a good relationship with real estate agents and just talking to local people, than the information is so invaluable.

 

Confidence and trust is important. You may have read, researched, have the financial capacity and the right risk appetite to pull the trigger but ... thinking back to 2012-13 are you sure Sydney will go up? Just because most are buying there does that make it a good choice? People pay 500k for that 40km from CBD, equivalent in Vic is 300k. Why would people pay 500pw to rent? (For you experienced / seasoned investors these questions would be stupid / even irrational). Now, many are buying in Logan - if you buy there are you investing wisely or are you a sheep? Some think Frankston will be a winner ...
If you are confident you take action. If you are not, you don't.

 

Action without a doubt. Much rather make mistakes by taking action than waiting years looking for the perfect deal.

 

Lots of qualites which work together:

• analysis and spontaneity
• humility and guts
• perserverance and flexibility
• ability to raise funds (probably at work ) and the desire to leave the rat race
• determination and an open mind
• optimism, realism and practicality

And always a good idea to keep an idea on obsession, greed and selfishness because they're extremes and can undo all the benefits of success.

 

Great list Wattleido

No doubt that "action" encompasses most of what has been listed here and is a very broad term but it is the absolute key to moving forward.

Now some of the initial actions you take you may look back in 5-10 years and say why didn't i do this or that but really it all adds to your experience and knowledge base moving forward.

Key is using this as you move past your first IP onto number 2,3,4 etc

 

To me, the most important skill is to be able to take 'informed action'. Action alone is not enough. If it was, then the statistics showing how many ppl are able to build a large portfolio would be much, much higher. To me, most investors take action and that's why so many investors have 1 or 2 properties and then come to a holt. The reason, in my mind, why a lot of us here are able to build large portfolios is because most of our actions are taken based on some intelligent informed decisions. It probably becomes second nature to a lot of us so we don't even realise we are doing it anymore. Just my opinion.

 

What about negotiation skills and patience ?

It is a factor that is very important determining the purchase price.

 

Maybe several ,1,,understand what the word compounding means,2,,time in the market will fix all downturns if you stay in the market most smell fear and run,,and I think the most important one listen to every ones opinions and be a "GOOD-LISTENER" and have a visible objective,and stay way from fast buck gurus,before all that walk too the window open it then walk back and throw the TV out the window and start reading books even if they are only old The Phantom pre 1960's comics..

 

@Tekoz @willair : Negotiation skills, patience, understand compounding, markets.etc ..all I agree with you guys. That's the 'informed' part of the action taking, in my opinion.

 

Clearly those people with 1 or 2 properties stopped taking action.

 

I agree S.T 100%. But there are reasons why most ppl stop taking action, it just doesn't happen by its self. Even investors who are 'informed', ie many on the forum who understand how to structure things, finance, markets etc etc...even for them sometimes 'Action' has no choice but to stop for a period of time. Imagine then, the investors who are not 'informed' and know almost zero about property investing and personal development. They can easily take action, the question is, where are they rowing to and when will the journey end?. I propose the statistics clearly answers this for us. Quick example, just in the last few weeks i was talking to some people who bought an IP and tried to manage it themselves. Long story short it was kind of a disaster and they couldn't wait to get rid of the tenants. Tenants left, some serious damage to the place and i asked them what was their landlord insurance coverage. They replied what's that? needless to say they wont be buying another property based on this experience. They took 'action' but had no knowledge behind what they were doing.

It is my opinion that to build and sustain a large portfolio long term, Action needs to be 'informed' before it is exercised and not just chaotic, emotional buying.

 

Building rapport and connection with agents is important as well..!

 

Yes it is....but don't expect much in hot market....however...I must admit...the bloke who sold me last one got on with me like a house on fire. Easier for you Sind1....you can bat your eye lids at him....I can't ....