8 Traits of Great Real Estate Investors

[Joe Assad]

Think you have what it takes to be a great real estate investor? Of course you’re a hard worker—that’s a given. You’ve put in countless hours building a firm knowledge of the foundational principles of real estate, and you’re up on the market trends. You manage money well, and you even know how to be flexible as the market ebbs and flows. But these are just the basics.

Cultivating long-term success as a real estate investor doesn’t happen overnight. If you want to play in the big leagues in this industry, it’s going to take more than zeal and a tailored suit. Successful real estate investors—those who’ve played the game for a while—all have certain traits in common. It’s these attributes that set them apart from the rest, giving them the advantage over their competitors.

If you’ve read this far, you must be wondering by now if you fit the profile? The following eight characteristics are key indicators for success in this field—it’s what separates the best from the merely good

Passion.  Above all else, successful real estate investors are passionate about what they do. With the staggering outlay in time and money that investing demands, it’s passion that carries an investor through the late nights when the market is ripe, as well as through the everyday grind when business is slow. Although many can enjoy a taste of short-term success, only the few who passionately love what they do will persevere in the long run.

Tenacity.  A great real estate investor doesn’t give up—they’re tenacious. A combination of drive and optimism allows these successful investors to keep trying, showing up every day, even when the chips are down. Taking no for an answer, is a concept they don’t understand. If one door won’t open, they look for another way in. You’ll never find a successful real estate investor crying in his, or her, beer.

Discipline.  Because the workload is substantial—with an extensive variety of tasks to juggle—it’s vital to an investor’s success to be disciplined, not only with regard to their profession, but all aspects of their life. Many successful real estate investors simplify their lives to the basics. They follow a routine. They wake early, eager to dive in. They are methodical in their approach to business and know how to prioritize.

Vision.  To be a successful real estate investor, you must use your imagination. What looks like a dilapidated shack to the average person, may look like the groundwork for a three-story apartment building to an investor—if they have vision. They don’t see what is; they see what could be. To have vision means to see a project’s potential for the future.

Confidence (without ego).  Although a great real estate investor will temper their optimism with a touch of realism, there’s no room for doubt when it comes to decision-making. If you want to be successful in this arena, you’ve got to be confident. If you don’t trust your own judgment, than you can’t expect those around you to place their trust in you either. On the other hand, a successful entrepreneur knows that ego can be their ruin. Therefore, a savvy investor knows they must walk a tightrope of confidence without ego—showing what they’re capable of through action rather than by talking a big game.

A sense of timing.  The real estate market is fickle and fraught with unexpected twists, turns, ups and downs. Knowing when to strike—like a cobra—requires patience, poise, and an impeccable sense of timing. The successful ones trust their gut. This ties in with having discipline—knowing when to hold back, lie in wait, and then intuitively knowing when to say, now is the time to act.

Knowledge of people.  There are very few things in this world that you can do entirely on your own, and investing in real estate is certainly not one of them. From buyers to developers to builders to bankers, a successful real estate investor knows who they’re dealing with, what their best interests are, and how to communicate with them straightforwardly and authentically. The greats surround themselves with other greats—like-minded individuals that value the same things as they all work together toward a common goal.

Grit.  Investment comes with its share of uncertainty, and with uncertainty comes risk. A great real estate investor takes this in stride and doesn’t allow fear to overtake them—their spirit is indomitable. They know they must act boldly, but this doesn’t mean saying yes to anything and everything that comes down the pike. Those who are successful in the field know when to step out on the ledge, and they possess the firmness of character not to get blown away. Their risks are calculated, not foolhardy. If you have grit, you can make a bold, risky move, knowing you’ll be okay regardless of the outcome.

As the American entrepreneur, Robert Arnott, once said, "In investing, what is comfortable is rarely profitable." In one sense, the business of a real estate investor is slow, broad, and long, and in another it is life on the edge. Investing can be cold, hard, and frustrating at times. It requires a special kind of personality to hack it. To wake each day and be your best self— in business and in life—is the true key to long-term success.