In a 2024 Gallup poll, 36% of Americans chose real estate as the best long-term investment, outperforming stocks, gold and savings accounts. This comes as no surprise, as real estate can be one of the strongest assets in an investment portfolio, offering significant potential benefits. However, as a landlord and investor, I’ve found that successful and profitable real estate investing takes more than just a bank account and a good eye for properties.
Top-performing investors set themselves apart through a combination of skills, intuition and strategic thinking. The real estate sector is particularly competitive and constantly evolving, which makes market knowledge, financial discipline and long-term vision vital to success. Here are six common traits that stand out among the most successful real estate investors in my network.
Analytical Thinkers
The quickest lesson I’ve learned in my own real estate investing experience is to always, always, always do your due diligence before making any investment decision. No matter how experienced you are or how familiar you are with the market, it is important to thoroughly and systematically research properties, assess potential risks, analyze market data and perform financial evaluations.
Create a step-by-step process for evaluating new investment opportunities and never rush into a decision without completing a full investigation. This strategic approach will help ensure you are equipped to identify lucrative opportunities and avoid costly mistakes.
Goal Setters
The most successful real estate investors establish specific, measurable, achievable, realistic and time-bound (SMART) goals that serve as a roadmap to guide their investment journey. Clear goals and a well-defined plan will empower you to make more informed decisions, track your progress and stay focused on both short- and long-term goals.
In my experience, successful investors think strategically about building wealth over time rather than seeking quick profits. Start with small steps to build your way up to long-term goals—for example, instead of aiming to double your property portfolio in the next six months, you might decide to aim for a 20% increase. Set deadlines to stay on track and adjust your strategy as needed.
No matter how smart and comprehensive your plan is, it is also important to plan for the unexpected. The real estate market is constantly changing, so being flexible and adapting as necessary is just part of the game. Be sure to build an emergency fund, monitor market trends and embrace innovation to set yourself up for success in an unpredictable landscape.
Lifelong Learners
Knowledge is power, and successful real estate investors dedicate time to staying on top of current trends, changing regulations and market conditions. The real estate industry is and always will be dynamic, and investors who thrive are committed to continuous education and expanding knowledge. Stay informed about local and national real estate trends, zoning laws and other regulations and economic indicators. Understand market dynamics like school districts, crime rates and potential developments.
Capitalize on opportunities like conferences, seminars and virtual events to grow your expertise within the real estate space. Subscribing to industry newsletters or trade publications is an easy way to keep tabs on the latest news and insights from key thought leaders. Personally, I’ve found it greatly beneficial to be a member of our regional housing association, where I am constantly learning new ideas from other industry experts.
Networking Pros
Your network is one of your most powerful assets in real estate, and successful investors strategically create and grow their connections. Look for opportunities to engage with agents, brokers, attorneys, contractors and fellow investors to gain valuable insights into the industry and open doors to new opportunities.
A strong network can help you learn from other investors, discover new markets or off-market properties and build a support system you can turn to for advice when navigating challenges. If your time is limited, seek out online forums or communities where you can build relationships virtually. Be open-minded about asking for help or advice. Working with a mentor whose experience aligns with your own goals can offer you personal insights, specialized knowledge and strategic advice that is hard to come by elsewhere.
Time Management Masters
Time is your most valuable resource, and investors who use their time wisely are more likely to find success. Prioritize tasks by identifying what is most urgent or most directly impacts your investment goals, and focus on the high-priority items. Delegate responsibilities when and where you can. For example, working with a financial expert on budgets, accounting, expenses and taxes is one of the first tasks many successful investors outsource. Knowing your own strengths and weaknesses is crucial.
As your investment portfolio grows, consider using a real estate or property management software to help you stay organized, automate repetitive processes and streamline your investment operations.
Risk Conscious
Real estate inherently involves risk, which means you’ll need to become adept at assessing, mitigating and managing risks like market downturns, unexpected maintenance costs or longer-than-expected vacancies. Conducting risk assessments early on in the process is an important step in any investment strategy, but you’ll also want to develop contingency plans for when things don’t go according to plan.
Diversifying your portfolio is a common way to spread risk and balance potential losses. Instead of putting all of their capital into a single property or market, many people expand their investments across different types of properties and locations to better navigate uncertainties and challenges.
Successful real estate investing is about much more than buying and selling properties—it’s about building habits and skills that set you apart in a competitive and dynamic field. Cultivating these traits will better position you to navigate challenges, capitalize on opportunities and turn your investments into long-term successes.
