In today’s show Jane Slack-Smith, the Ultimate Guide to Renovation video series author, shares the 6 things she has found successful investors do.
Kevin: By now, you will have received your first video in the Ultimate Guide to Renovation video series with Jane Slack-Smith. Jane joins me.
Jane: Hey, Kevin.
Kevin: To get more information about this fantastic program, use the link on the homepage at Real Estate Talk. Click on that link and you’ll get all the information you need.
In that first video, Jane, you’re walking through a property. I know that you’ve been dealing with a lot of very successful renovators and investors over the years. What have you found are the common traits that stand out when you’re talking to them?
Jane: I have actually distilled it down to six common traits, Kevin. The first one is that successful investors think long-term. They’re not thinking about this current deal, the property they’re looking at at the moment and opportunities. They’re always looking long-term to their long-term goals and then looking at a property with the goggles on that say, “How is this going to get me to my long-term goal?” They’re very long-term in their approach to investing.
Kevin: They don’t take any short-term views. What else?
Jane: They don’t make emotional decisions. They’re not going to walk in and fall in love with a spa bath. They’re going to, once again, look at the property, sum it up, and see “Does it fit the demographic? Is it right for the area? Is it right for their goals and their strategy to achieve what they want to achieve?” So no emotional purchase decisions.
Kevin: I suppose when you take that emotion out, you can remain calm, focused, and pretty steadfast, too.
Jane: Absolutely, and it gives you a clarity. If you’re always assessing everything you do against “Is this going to get me to my goal?” it becomes very clear if a property is going to be an emotional decision, which leads me to number three.
I see that successful investors don’t let fear stop them. They look at the numbers and they know that investment is about the numbers and getting it right. They look at the long term in achieving those numbers, but they don’t stop and get worried about “Are they doing the right thing?” because they’re very clear on what they’re trying to do.
Kevin: That’s because they have a plan and a strategy, isn’t it?
Jane: Absolutely. I talk, obviously, to hundreds of investors every year, and I’m always assessing what people are doing right and what they’re doing wrong. Really, it’s just getting the fundamentals right.
It’s some of the simplest things like buying in the right area and understanding how the property has to be right for that market. We talk about demographics, but what we’re really talking about is “Who is going to buy or rent this property?” and “Does the property I look at satisfy that need?”
Kevin: What about paying the price? Are they always looking for a bargain?
Jane: Not always. Often, successful investors, maybe they’ve done their assessment and they find that there might be some zoning changes, and they’re happy to pay a little bit over market, but the difference between experienced investors and inexperienced investors is that experienced investors know that they’re doing it and inexperienced investors don’t know they’re doing it. Often, they actually are paying over the market.
Kevin: They do seem to have an air of confidence about them, too, backed up by the fact that they know what they’re talking about and they’ve done their research.
Jane: Which brings me to number six on the successful investor tips. What I see successful investors do, the number one thing is they educate themselves. If I had to say the best investment in property investing education that you can make, it’s educating yourself so that you know what to do, when to do it, and how to assess if there is a deal there or not.
Kevin: Also part of what we’re talking about here is they have a plan and a strategy. Part of that would be getting the right finance in place.
Jane: Absolutely. They have to be prepared. I speak to people every week who have found the deal of the century and because they weren’t ready with their finance, it fell over. It’s about being ready to act when you need to act, as well.
Kevin: Great advice. You can follow the success trail that’s being laid down by Jane and her team, The Ultimate Guide to Renovation: The Video Series. We’ve had two already, Jane.
Jane: That’s right.
Kevin: What’s coming up in the future? How many are there in the series?
Jane: The big reveal in Video 3 is the end result of the renovation that we do in Video 2. In Video 1, we would had just gone through and inspected the property and seen what we could have done. At the end of Video 3, you get to see all the beautiful renovation done.
Kevin: Make sure you don’t miss it. There is a link on the homepage of Real Estate Talk. Click on that link right now and you can get all the information.
Jane, thanks for talking to us. We’ll catch you again soon.
Jane: Okay. Bye, Kevin.