Just as every journey starts with a single step, every real estate empire starts with a single building. To build a portfolio over the years, you must learn how to navigate the winding road of real estate investment. Here are three of the most important lessons when building out your portfolio.
More Than Money
Investing in real estate for financial reasons is a good idea, but you must realize that money isn’t a sustainable source of motivation over the long term. Instead, it’s essential to have strong ethics and values that represent who you are. Since almost all real estate investments involve tenants (especially families), focusing on helping others rather than just pursuing profits has helped drive my vision forward.
Putting ethics first means doing the right thing even when no one is looking. Ask yourself what your values are and write them down. That should give you a clear idea of your goals and how to get there.
Building a Great Team
You can’t do it all yourself; the sooner you realize that, the better. That’s why having a good team is crucial.
The first step in building a great team is to look inward and focus on self-improvement to become a better person. Only then can you attract people who share your vision. Team members should not only share a vision but also offer complementary skills.
The Power of Mentorship
Finding someone who has already done what you want and is willing to share their experience can be one of the most critical factors to succeed in real estate—and in just about anything else you’re trying to learn from scratch.
Mentors provide guidance on what to do and what not to do. This can help you avoid costly mistakes, especially early on.
Getting into this business can be tricky; the smallest missteps can have disastrous consequences. Having a mentor can help you to navigate the field better and sidestep these potential pitfalls in a less costly, less time-consuming, and all-around more efficient fashion.
It is very important to ensure that any potential mentor you find is still active in their field. In real estate, investing patterns change significantly from year to year or even month to month. Last year’s wisdom doesn’t necessarily apply today.
The beautiful thing about mentorship is that it is the gift that keeps on giving: just as you may be a mentee today, you could be a mentor tomorrow, sharing your acquired insight with the next generation.
Getting Started
Getting your first property remains the most complex. It’s the most challenging part because we have to find the funding and gain. We also often lack confidence in our abilities; we have to dare. As in almost any business, getting off the ground is the hardest.
This is where a good team and a mentor’s advice are invaluable. It’s also important to remember that you don’t need a massive real estate portfolio to achieve financial freedom. The compounding effect of owning just a few well-chosen, profitable properties can make a big difference.
Building a real estate portfolio is grounded in ethics, teamwork, and mentorship. Remember, it’s not all about how much you own but the impact you make on your community and the lives of others.
Your Journey
In conclusion, building out your portfolio takes self-awareness, priorities that are more than just profit, a great team, a willingness to collaborate and listen, and a lot of perseverance. It may not always be an easy journey, but if you get started today, there’s nothing to stop you but yourself.
