Real Estate Success and Failure: Knowledge

In a previous post, I spoke to the importance of Determination when successfully pursuing Real Estate as a means to gather wealth. The second factor discussed here (not in order of importance – they are ALL important) is Knowledge.

The Merriam-Webster Dictionary defines Knowledge as “the fact or condition of knowing something with familiarity gained through experience or association.” In the area of real estate project completion, it is this ‘knowing’, gained from books, articles, conversations and direct experience that will often determine success or failure.

Recently, an inspector reviewing progress on a house we were building remarked that there is so much that is important in the construction of a house, that it is almost impossible to see everything during a single inspection. This was from a trained professional!

Real estate areas of concern include, but are not limited to

• Finance
• Law
• City or county ordinances (often changing-sometimes weekly)
• Plumbing
• Heating, Ventilation and Air-Conditioning (HVAC)
• Electrical
• Structural Engineering
• Weatherproofing
• Thermal efficiency
• Natural and artificial lighting
• Architecture and Design
• Current fashions in real estate
• Neighborhood covenants and standards
• Etc.

The shear vastness of the required body of knowledge exceeds the capacity or interest of virtually everyone. And yet, a successful team will include all these and even more.

As I work with new investors, I first determine their relevant preexisting working knowledge, their interests and objectives. Understanding these allows me to determine areas where I and others can be most helpful.

Knowledge is gained, not given or inherited. Gaining knowledge requires time, interest and curiosity. Most investors would do well to spend some time gaining at least a functional knowledge of as many areas as possible and a working knowledge of at least two areas. As in any field of endeavor, what you don’t know can (and often does) hurt you. Learn as much as you can and hire the rest using trusted contractors that stand by their work.