Want to know how to maximize the process of calculating risk?
The answer may be closer than you realize. As entrepreneurs and investors, we may feel driven to do everything ourselves, but the reality is that the most successful people know how to leverage what is around them.
Learn from those around you
When you surround yourself with successful people in the investing field, it becomes a lot easier to watch their patterns, understand their decisions, and ultimately follow what they do. Not around anyone who is successfully doing what you want to do? Run to your local library or book store and start reading. There’s an abundance of successful investors who have written books about the lessons they learned during their many years of life. A lot of the mistakes I made could’ve been easily avoided if I would have spent more time reading wisdom from experts and listening to those who had been in the field longer than I. Don’t short-change yourself by thinking you have all the answers.
Learn from the history around you
I’ve seen many investors jump into deals without learning the history of a place only to have the project fall flat on its face. A key part of calculating risk is learning about the history of both a property and an area. When you learn about trends in a certain micro-market, it can allow you to better understand how to make wise decisions with an investment. The history of a building is the one thing that you will never be able to change. Learning the history of a building’s space and ownership can be helpful in submitting offers and making deals because it will show owners of properties that you actually care about the building and its potential. You may even be surprised by the inspiration that history can draw out of you!
Learn from the market around you
A big mistake investors can make is making decisions for multiple properties based on a singular market trend. Macro-trends are important to follow, but micro-trends will show you the direction of specific areas. Conducting a macro- and micro-market study can show you what to expect both short-term and long-term for a property.
Are you interested in investing in real estate but want to minimize the risk involved? Catch my podcast episode with Evan Holladay on the Monumental Podcast where I share more about calculating risk and turning decades into days: https://www.youtube.com/watch?v=oDE1MF321tM