Over time, real estate investments have afforded many people the powerful combination of appreciation and income. The purchase of real estate through a self-directed IRA is a popular choice for this and other reasons. While there is no definitive list of characteristics that make someone successful at real estate investing, most successful real estate investors share a certain set of characteristics.
- Competence – it is crucial to understand the ins and outs of investing in real estate. Joining local associations, such as a real estate investment association, can be a great way to develop an understanding about real estate investing. Mountain West IRA provides our clients with continuing education and seminars to put their self-directed IRA to work for them by investing in real estate. Learning as much as you can about real estate will help you become a more competent investor.
- Make decisions grounded in logic – with every investment decision you make, your strategy must be based on facts and logic. You cannot let emotions sway your financial decisions. Work on developing solid financial goals based on your knowledge and understanding of the market and avoid being influenced by emotion in your real estate transactions.
- Understand the real estate market – while it is necessary to understand the principles and strategies of real estate investing, you must also understand your particular market. Certain concepts you’ve learned about may not apply to the real estate market you’re investing in, so completing your own research becomes essential. Asking questions of successful real estate investors or joining a real estate investors association can provide valuable information. If you are using money from a self-directed IRA for your real estate investments, it is absolutely crucial to understand the applicable rules and regulations. Contact Mountain West IRA for help in setting up your self-directed IRA and to understand the prohibited transactions.
- Be consistent – when you first begin investing in real estate, you must develop an investment strategy. Begin developing good habits early. There will be regular steps to take on a daily, weekly or monthly basis – do them consistently. Consistency is one of the biggest hurdles to overcome, but if you do establish consistency, success will likely follow.
- Establish good character – Stick to your principles and treat business deals the way you would a relationship – treat the other person like you want to be treated. Shortcuts and hasty deals can backfire and a damaged character is more difficult to repair than the “fixer upper” investment property. In the world of real estate investing, opportunities abound.
With patience, logically grounded decisions, and professionals like Mountain West IRA to help you establish and manage your self-directed IRA, you will have a much more enjoyable real estate investment experience.