Working Within The Parameters Of Your Skill SetsBy JD Esajian on September 8, 2014
Regardless if you are looking for your first deal or are a seasoned veteran, you have something that makes you unique. In many cases, the best investors are the ones that do not have any real estate background and take their work experiences into the investing world. Every investor has a specific skill set that makes them special. They just have to know where to find it. It is not always easy to undergo self-analysis, but if you know your strengths and weaknesses you can use them for the better. Working within the parameters of your skill sets will ultimately pay off.
An investing strength can be something as seemingly minor as knowing how to use an excel spreadsheet or having access to a 401k. If you start by writing down everything you may have done at a previous job or what you do well in general, you can use it in your investing business. There are many different things that a good investor has to master. Why not give yourself a head start? Direct knowledge of specific types of back-splashes in the kitchen may be helpful, but it is something that can be learned along the way. Start with what you do well and work from there.
If you have a good grasp on marketing and social media, you should use that as a platform to generate business. If you are a people person and want to develop contacts first, you can join networking groups and investment clubs. What works for one investor may not work for you, which is why it is important to identify what you do well and run with it. If you have access to cash but don’t know too much about the business, you can look for a partner that does and get your foot in the door that way. The simple exercise of writing down all of your strengths can often times help you figure out what niche you want to pursue and even what areas you want to invest in. Everyone has something that they do well. The sooner you identify it, the quicker you can use it to your advantage.
The flip-side of that is to identify your weaknesses. This could be something that you consider a flaw, either with your business or in your personality. It is much more difficult to acknowledge and accept these than to point out your strengths. A flaw could range from not having access to money or not feeling comfortable talking to people you don’t know. The beauty of the real estate business is that there is an approach for most every personality. If you aren’t into networking, you can generate leads through direct mail or email campaigns. If finding cash is a problem, you can find a capital partner or a hard money lender. Your liabilities can be changed, but you must first know what they are. In most cases, these can be things that you have to change with your personality. This starts with doing some self-examination to find out exactly what you need to work on.
As hard as we may try, we will never be perfect. There is no such thing as a perfect investor. However, if you want to get the most out of your business, you should make an honest attempt to correct your flaws. After you identify your liabilities and weaknesses, you need to come up with a plan. How are you going to go about turning your liabilities into strengths? This process is very much like going on a diet. Things can go great for the first few weeks, but once you hit that wall you fall into old habits and soon enough you are right back to square one. If you want to get better at networking, make a commitment to talk to just one new realtor a week. Setting and achieving small goals will give you the confidence to tackle bigger ones. Before you know it you will turn a weakness into strength. In doing so, you can totally change the way you do business. This all starts by making a plan and having the discipline to change.
While there is a way to get around weaknesses, you shouldn’t view them as a crutch. Sure, you can hire a property manager if you don’t like dealing with tenants, but is it worth losing money every month to do so? Instead of avoiding a weakness, you can look to add a partner that compliments your strengths. This is the basis of real estate and business partnerships in general. You and your partner cover each other in areas where the other person may want or need help. The next time you are at an investment club meeting or talk to fellow investors, remember that it is often best to find someone to compliment you rather than just covering up your deficiencies.
Knowing what your strengths and weaknesses are is just another way to grow your business. Everyone is good at something, even if you think that quality may not apply to real estate investing it probably does. By doing nothing else but using your strengths, you will get more out of the business and become successful much faster. Taking a look at what you are good at or what may need improving is not always easy, but it could just be the step that changes your business.