7 Tips and Tools for Thriving as a Real Estate Investor in Any Market

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Can you win at any market?

No seasoned real estate investor will deny the importance of keeping up with macro and micro market conditions. Ignore either, and you don’t really stand a chance.

Also, recently, the conversation of a declining market has swallowed up the evergreen advice. In fact, new data shows that investor homebuying fell 46% year-on-year in Q4. Therefore, it seems that not enough is being said about tried-and-true strategies, principles, and tools.

Why does this matter? These are the very strategies that are invaluable to being successful in any market, be it:

• maximize your profits
• Reduce the energy and stress it takes to manage your rental
• Streamline systems and processes to save time
• Anticipate problems or obstacles by preparing in advance

Reading the changing market is critical to your portfolio’s success, but there’s a lot you can do now that will help you become a more successful investor, whether the market turns this way or that.

Before we begin, let’s talk about what we won’t cover.

Besides the obvious tips (I know, you’ve read a zillion articles with them, and you’re tired of it), things include:

• with your local market in mind
• maintain a property
• choosing the right property

If you were looking for similar generic, boring tips, I’m sorry to disappoint, but there are plenty of other articles you can read on BiggerPockets that cover this.

Instead, below, we’ll talk about more creative (but still evergreen) tips that aren’t so obvious. Some people may ride that line, but the reason I include them is because I feel that there is often something left out about the subject.

If you’re an experienced investor, you’ve definitely heard some of the tips I’m about to cover, I aim to give you something new and actionable that you can actually apply to your business to improve your business. Can be taken with you, no matter how long you have been investing.

Ready? let’s talk about it.

1. Expand your networking opportunities beyond just agents and investors

As a real estate investor, the value of connecting with other investors who may be able to fund your deals or become partners in a project is obvious.

Connecting with local agents who can locate you deals you are willing to invest in is also straightforward and something you may have already done.

And you’ve probably already tried or actively participated in local networking events and groups.

But one area I’ve noticed that many times investors don’t take full advantage of is connecting with other local professionals, such as:

• Title Companies/Officials
• contractors
• loan officer

Depending on the type of deals you deal with, there are many other people who play an important role in the real estate buying and selling process that you can benefit from.

Don’t be shy about it either. These are mutually beneficial relationships that can and will bring you deals and them business.

2. Factor vacancy rates into your overhead

Handling vacancies is a part of managing rental properties. If you’ve been in the game for a while, you know this. How landlords handle vacancies, however, can vary greatly.

The most important thing you can do is make sure you have money set aside for vacancies, which gives you a way to make quick replacements and:

• market the property
• be examined
• get the unit cleaned

All without worrying about it affecting your bottom line for the month.

5-15% of your gross monthly rent is the most common number, with 10% being the conventional wisdom for vacancies. However, you’ll need to figure out which number works best for you based on your market and the type of properties you’re renting out.

Some landlords prefer not to set anything aside, in some cases using a line of credit (LOC) to handle surprise expenses. However, it is risky and needs to be handled properly in order not to incur additional debt.

3. Find a Great Property Management Company That Matches Your Style

If you’re new to real estate investing, contracting a property management company can save you hundreds of hours per month and your sanity.

However, if you are a seasoned investor, you might have had a bad experience with an asset management company, dumped them, and never tried again.

The problem with hiring a property manager is that they’re like any other partner in your business: You need to net them well. If you don’t, it doesn’t work.

Not every property management business operates in the same way. Some companies will have a process that works for you, while you may struggle with others.

Plus, every asset management firm is run by people. Some of those you’ll click with, others you won’t.

you should study How To Find A Property Manager That Will Work For You And take some time to figure out what you should be looking for before you try anything.

4. Screen tenants thoroughly and don’t be afraid to turn someone down

Sometimes, you’ve got to take what you can get. I understood. However, in many markets, you can and should probably have a little more choice than the way tenants are usually selected.

A better tenant will save you a lot of time and money over the term of the lease. They will give less calls, problems and more time.

Usually it might be worth waiting a while to see if you can find someone who is a better fit.

Be sure to do a full background check, not just criminal background and credit report. Use a Service Like TransUnion SmartMove® Which gives access to unique reports like:

• expulsion history
• income insight
• ResidentScore System

Doing so will give you a more complete picture of whether the applicant is a good fit, which will lead to fewer problems for tenants in the long run.

5. Expand Your Toolbelt to Include Creative Financing Tools

If you’ve already dipped your toes into creative financing, you’ll know that there are many ways you can find and close profitable deals that are outside the normal process.

When the market changes, what worked in the past may not work anymore (or for a while). Certain types of deals are mainstays in every market, but how hot they get is another story. However, depending on market conditions, you may want to stay away from the others altogether.

For example, short-term rentals aren’t always hot. Depending on what kind of deals you typically do and your market, neither are fix-and-flip.

To help combat this and allow you to find more deals that make sense based on what you’re looking for (and find ways to grab assets you might not be able to otherwise), you can sometimes Can use creative financing.

This includes a variety of strategies, such as:

• seller financing
• subject to
• some hybrid approach

Creative financing is an entirely different animal, so there isn’t enough space here to dive into the details. However, you can start with Article,

6. Streamline Your Process As Much As Possible

You need to work on streamlining and organizing your process in every possible way. This includes how you:

• Choose which assets to invest in
• upgrade your properties
• manage your assets
• collect rent
• even more

Saving time is saving money and the more you widen your margin, the more likely you are to be able to make a particular deal and property profitable.

Another benefit of organizing? You can teach a team.

If you have a few dozen doors and still don’t have more than a VA on your team, you’re probably keeping things too close to the chest.

Getting organized saves you time and money, and can also make it easier to expand your reach to further markets.

7. Invest in Property Management Software

I know, if you’ve been doing this for a while, any change to your process can feel like a nail on a chalkboard. I’m sure Blockbuster felt the same way when they just turned down Netflix for $50 million.

what’s my point? Change is almost always uncomfortable, but adaptation is necessary to survive. And what has been the biggest upgrade in the portfolio and asset management process over the past two decades? asset management software.

Gone are the days of spreadsheets and notepads, and in their place are streamlined, centralized, and simplified systems that create:

• Everything easy to locate and track
• A variety of tasks take less time than before
• do more with less

Not every asset management tool is created equal, but most tools will help you in a variety of useful ways and areas, such as:

• Rent Collection and Late Fee
• Listing, Screening and Leasing
• Maintenance and Tenant Communications
• even more

conclusion

The number of great tools, resources and knowledge is limitless. You really can make it in any market if you know how to play it.

Some factors are out of our control, but by building your toolbox, you’ll have more opportunities to build a successful portfolio that works for you.

The best tool we’ve found on Doorloop after talking to thousands of landlords is simply knowledge and information, whether it’s about landlord-tenant laws, how to properly evict a tenant, or forms, Have access to documents such as checklists and documents. Application.

That’s why we put together an all-resources zip file with all of our best checklists, templates, and other resources. Contains:

• A collection of checklists such as an apartment maintenance checklist, a deep cleaning checklist, selling and negotiating, and an HOA audit checklist
• Lease agreement and rental forms for each state
• Landlord reference letter, identity card, termination letter
• chart of accounts template
• A residential property questionnaire to find out how happy your tenants are and where you can improve
• security deposit return letter
• and many more

I know that being a successful real estate investor in any market is a tall claim. But you’ve never had more access to better information than you do now. Make the most of everything, and don’t be afraid to reach out to your fellow investors for advice and guidance.

Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.