Have you ever heard of the 70-20-10 principle?

This is a long-running training principle based on study that people learn 70% of their professional knowledge from experience, 20% from interacting with others, and 10% from their formal education.

Most investors would likely agree that the same rule applies in the real estate business. If you are relatively new to the practice, then the best means of improving is to learn from the experiences of those who have succeeded ahead of you.

Let me highlight 7 things that pros do differently from newbies when it comes to property investments:

1. Relying on data

Successful investors make decisions objectively. They continuously conduct research and assess things based on data. Through the years, they learn the most reliable sources that are available such as market surveys and local government records. Having a strong network within the real estate community is also an advantage.

2. Having long-term projections

Every wise investor knows the value of patience, most especially in the property market where volatility is quite gradual. ROIs can take time but with the right decisions, they can bring generous profits.

Many beginners tend to judge investment opportunities based on their current state. However, a property that is worth a certain price today can potentially double in value in 7 or 8 years – and an experienced investor knows this very well.

3. Investing in multiple assets

It is common knowledge among investors that diversifying your assets is essential in protecting your wealth. Relying on a single property can be risky and so they distribute their property investment into different locations or property types.

Of course, you also need to consider your buying capacity. It is understandable to start with a single property while you are still growing your finances but understanding this concept is essential, nevertheless.

4. Paying attention to property maintenance

Buying a property is surely a big undertaking, but owning a property also comes with responsibilities. Investors take care of their investments. They address maintenance issues as early as possible before they worsen and allocate budget for repairs and improvements.

The value of the property is greatly affected by its physical state. If ever you decide to resell later on, you can set premium price when the place is in excellent condition.

5. Knowing what is personal and business

After acquiring your first property, it is normal to have that feeling of achievement and become emotionally attached to your asset to a certain extent. However, if you are engaging in property investment as a business, then one thing you have to learn is to set your boundaries between what is for business and what is for personal interest.

Failing to do this can potentially complicate your chances of closing opportunities. For example, a seller might overprice the property because they might equate their personal attachment to it as additional value. As a professional, you need to define that line.

6. Understanding taxes

Being a responsible property investor is not just about maintaining the physical condition of the place. Like it or not, you need to learn and comply with due taxes. Of course, hiring the services of a tax accountant is always available, but it is best that you understand the basics at the very least.

Take note that being well-informed on taxes does not only save you from penalties, but it also allows you to take advantage of tax deductions, returns, and discounts.

Read my recent article, Understanding Property Taxes in the UK.

7. Getting support

There are many types of assets aside from the property itself. In real estate, a peer network is a valuable asset too. There is a community of hard-working professionals who can help you simply by interacting with them and hearing their experiences and insights.

Remember the 70-20-10 rule? Well, I hope this article aligned with it and that you obtain something to take with you in your property investment journey.

Before you go…

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