What skills does it take to be a real estate investor?

Question

BQ: What level math do you need to be successful?

Jeremiah B. · Answer

I'll provide a bit of a dissenting opinion on this one.

While it's true that you will not need much actual math, the ability to analyze a deal, quantitatively, is huge - and a skill that is often lacking.

For example, let's say that you want to calculate the ongoing maintenance expense for a rental over the next 5 years. The simple answer is to use a number like 5%/year. But the nuance is in determining if 5%/year is the right number as this number will be driven by the age of the property, condition of the property, type of tenants, landscaping, size of the property, labor market, ability to secure contractors, projected vacancy of the property, upcoming big items, whether you have a capital fund as well, etc...

To say it another way, combining the numbers is easy. But figuring out the right numbers to use takes a little bit of art and a little bit of science. If you're taking Business Calc (is that even a think???), you should be fine.

Happy hunting!

Bill Gulley · Answer

Real estate math at the small investor level, say under 5 million can be done by addition, subtraction, multiplication and division, if you're in construction a bit of geometry will be involved. Sounds like you are already way past the skills needed. Understanding mathematical theory is very good, but you'll not really get into math that deep. Understand financial formulas, present, future value is about as complicated as it gets and we have calculators for that. Good luck :)

John Powell · Answer

If you finished high school you will be more than fine on the math side. even if you didn't none of the math is complex. The real skills you will need are Risk tolerance, follow through initiative and determination.

Nicholas Patrick · Answer

that's it? That's nice to hear. Glad I don't need like business calculus or something crazy like that. I'm taking business calc next semester :P

Darlena Jones · Answer

I would add multiplication.

Curt Davis · Answer

As long as you can add and subtract you will be just fine.

What skills does it take to be a real estate investor?

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