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Real estate investing is a long-term business, so you have to think beyond the nearest transaction. A real estate investor may become a millionaire in a couple of years, that's true, but only if his or her reputation remains flawless. And it means there are some iron rules you must never break if you want to be a successful real estate investor. Surprisingly enough, they are not about numbers or specific business tricks. They are about your business ethics. 1: Only make promises you can keep Why? The reason is simple: if you promise a lot (say, 50% return of investment) and then provide only a fraction of what you say (for example 15% return), you will quickly be marked as an irresponsible. When you say you can do something, you always have to be 100% prepared to do it. It's much better to be modest in assurances and then exceed someone's expectations than make ridiculous promises. The point is that the words go around quickly in the world of real estate investing. If you break a promise, you may soon find out that your other business partners - sellers, another real estate investors or even banks, are less inclined to make deals with you. And the more promises you break, the more serious problems you can expect. 2: Keep to your word When you say something, do it (say something ONLY if you intend to do it). If you are about to say things you can't or won't do, remain silent. You do not want to be known as a liar, especially in the real estate industry where the trust is everything. Breaking your promises is the fastest way out of the real estate industry. No one will deal with the investor who first promises to buy a property, then vanishes. 3: Care for everyone involved You have to make your best to care for everyone involved in the deal - from the seller and the lawyer to the rehabbing professionals you hire and the real estate agent that sells the property. Everyone should be at least moderately happy with his or her part of the operation. The reason for that is simple: people who have enjoyed doing business with you are be more inclined to (a) do another business with you in the future, (b) do their best to help you and (c) step down from their price the next time you need their cooperation. Moreover, if you try to squeeze too much profit from the transaction at the cost of someone else, you risk that someone will back out in the middle of transaction (not unheard of) or at least remain uncooperative. Successful real estate investments may be easily turned into disasters by uncooperative attorney or renovation professionals who do ONLY things that are expressly written down in the contract. Care for everyone - you will soon profit from it! The bottom line: Be honest. Don't exaggerate, don't lie and try to build long-term business relationships. This will make your business go smoothly and let you concentrate on making your real estate investing business grow rather than dealing with the negative results of your own words and actions.
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