Real Estate has created more millionaires and billionaires than any other investment vehicle. While the world of real estate investing is full of successful people from Donald Trump to the even more successful Donald Bren, this dog-eat-dog world is also littered with millions of also-rans and bankrupt players. The successful real estate investor must understand the qualities that separate the successes from the failures. Here are some of the more important traits:

Risk Tolerance

No one said that real estate investing was without risk. A good real estate investor accepts this fact but a superior one understands it and makes it work for him. A fundamental and thorough grasp of the risk/reward ratio will well serve any real estate investor whether they are on the lending or borrowing side.

Work Ethic

Similarly, no one ever said that real estate investing was easy. It is a job, pure and simple. The tasks can range from the day-to-day management of properties through the oversight of a remodeling project to simply paying attention to one’s investment capital. In any event, it is the investor’s money at risk and they must be diligent in their efforts at monitoring its performance. In short, no one cares more about your money than you do. 

Prudence

To mangle an otherwise good proverb, always look a gift horse in the mouth. Anything too good to be true, probably is. Every real estate investment deal should be measured on its own merits. A prudent investor does not take the word of a previously successful partner without checking the facts. There are simply too many variables. Always do your homework before signing any deal.

Resources

Opportunities do not always arrive at convenient times. One’s capital may be tied up and access to a solid source of funding can be invaluable. In these types of cases, private money lenders are usually the most reliable provider of funds. Any knowledgeable investor should investigate these sources of ready capital BEFORE he or she needs them. Private or “hard” money lenders offer excellent rates, a range of terms and superior advice when it comes to real estate investment deals.

No prudent real estate investor should navigate the unsure waters of real estate investing without a reliable and hard-working private money lender behind them.