As the country moves toward a post-pandemic era, industries expect economic recovery. The public is now gaining the confidence to live a new normal life, and businesses are back to operating as usual — thanks to the government’s vaccination efforts. The restored normalcy will certainly affect the real estate market, which is seen to bounce back this year.
Colliers International Philippines has reported that the country’s property market is poised for a rebound this 2022. According to the report, improving vaccination rates, coupled with the rising consumer and business confidence, should inject a boost to the real estate sector.
With the real estate industry facing a bright future ahead, many investors may want to turn to it as a wealth builder, while professional workers may want to explore a career out of it. If you’re one of them, then you should start learning the most commonly used industry terms, as well as develop the skills necessary for the job.
From negotiating deals to nurturing strong relationships, you need to hone the following real estate investor skills to succeed and advance in the industry.
A real estate investor needs hard skills to effectively deal with potential buyers or tenants. Without the following skills, you might find it challenging to excel in real estate property management.
1. Industry knowledge
There will be times you’ll be working with people who are new to real estate. Often, they’re clueless about the steps involved in the process. As the expert, you need industry knowledge to guide them and make the process comfortable.
One way of gaining industry knowledge is by devoting time to reading resources about the trends and latest developments in the sector. Joining a training program can also increase your knowledge and improve your skills.
At RE/MAX Gold, for instance, our real estate professionals are introduced to a training program specific to RE/MAX Gold’s transaction process. Our realtors are also allowed to join the RE/MAX global agent training and upskill programs, moving them to the “Trusted Advisor” stage of selling.
2. Professional network
Being well-connected creates opportunities and provides support whenever you need it. Whether new or experienced, all real estate investors can benefit from a strong and diverse professional network. These connections can come in handy whenever a client needs extra assistance.
For example, when someone is looking to rent or buy a property, you can introduce them to a reliable home inspector, interior designer, or other contractors in your professional network.
3. Property management
When handling a project, having management skills is extremely helpful. You need to manage different contractors, regularly maintain the property, conduct property inspections, check on tenants, and collect rent. There are many moving parts to being a real estate investor, and with the right management skills, you can easily take control of the situation.
4. Cash flow management
Most property investment tips and recommendations note that cash flow management should be on every real estate investor’s checklist. This is logical, as money comes and goes during transactions. As such, you need to keep everything on track, including the budget.
In addition, by monitoring your finances, you can promptly pay mortgage loans, cover repairs, and calculate your profits.
5. Basic home maintenance skills
You can save a lot of money when you know how to handle the basic repairs of your property. For example, by refinishing cabinets or repainting a space yourself, you can increase your profits from your property.
Since you’ve boosted the quality of the place, you can demand more rent from tenants. With the money you’ve saved from doing the flip yourself, you can increase your margins even further.
You can always put your soft skills to work whenever the situation calls for it. However, not everybody has the soft skills the real estate industry demands. Sometimes, you need to develop it as you gain more experience.
Here are some soft skills that are important to develop as a real estate investor.
1. Interpersonal skills
Being a real estate investor requires you to meet and build relationships with different kinds of people. As such, having interpersonal skills allows you to be an expert networker. It will also enable you to develop conflict resolution skills, which are helpful when you’re dealing with difficult buyers or tenants.
2. Negotiation skills
Someone who decides it’s the right time to enter the real estate market may not easily accept the terms in property buying. Perhaps they want to propose a price that’s different from what you have in mind, so you should be ready to negotiate.
You must be flexible during negotiations. You need to have the skill to go back and forth until both sides get what they need from the arrangement. Being too hard on your decisions or too soft with the client are traits not ideal for a real estate investor.
In the real estate industry, it’s important not to act on impulse. This type of investment requires a lot of patience because it’s not about instant gratification. It takes time to learn about market trends, identify the right market, make deals, and wait for economic improvements.
It helps to set milestones for your long-term goals to prevent yourself from making hasty decisions and guide you in the right direction.
4. Organization and effective communication with industry peers
As a real estate investor, you may have projects that you’re handling simultaneously, and most of them may be at different stages. Therefore, you need to develop good organizational skills to keep everything in line.
Also, you need to have effective communication skills with your peers. Keep in mind that you can’t form a functional relationship with anyone if you don’t communicate well. By listening actively and being tactful, you can manage your projects and close more deals smoothly.
Enrich and Expand Your Skills
Developing real estate skills requires time, effort, and experience. But once you’ve learned the ropes of the industry, you can navigate the complexities of buying and managing different properties with ease.
If you’re looking for properties to buy or invest in, don’t hesitate to contact the real estate experts at RE/MAX for a free consultation. Or, if you want to be part of a trusted real estate broker in the Philippines, reach out to us to learn more about the opportunities that await you!