Do You Need Real Estate Training to Succeed? Here's What You Should Consider. If you are thinking about getting into real estate in the long term, relying on luck or instinct is not the best option. Indeed, not everyone succeeds in this business and the risks are up to thousands or even millions of dollars.
By Xavier PRETERIT Edited by Chelsea Brown
Opinions expressed by Entrepreneur contributors are their own.
Knowledge is the weapon that distinguishes the ordinary investors from the best. This knowledge can be acquired through experience, but also through training. Today, the biggest investors have understood this. They do not cease to increase their knowledge by training day after day in order to be the best in their field.
"Knowledge is power." This quote takes on its full meaning in the real estate field. If you are considering investing seriously in real estate, the truth is, you will need real estate investment training. This type of training should not be confused with the various training programs for real estate agents, property managers or real estate developers. Simply put, real estate investment training helps you to become a seasoned real estate investor.
Real estate investment training does not only consist of accumulating information about the real estate field. It is more than just knowing the market or the real estate taxes. This knowledge also includes financial education and some specific skills that will help you to identify various opportunities, which can only be spotted by a discerning eye and will allow you to multiply your potential.
Related: Learn How to Make Money in Real Estate
Training to acquire the basics of real estate investment
Knowing the basics of real estate investment is necessary to make the right decisions. This training helps you learn about the different types of real estate investments and the benefits and risks of each type of investment. You will be able to choose the type of investment that suits your profile.
The study of the market, the notions of taxation, as well as the applicable laws and regulations are an integral part of real estate training. These different elements will help you to orient your choice towards a particular property. The knowledge of the various tax systems, in particular, is necessary because the impact of the taxation on the profitability of your project can be catastrophic.
In the same way, real estate investment training will keep you abreast of the new regulations in the area. In this sector, not being aware of these regulations can be fatal to your real estate investment. For example, with certain types of investments, there are specific regulations that define maximum rent levels that must not be exceeded. Not knowing these laws can distort the entire calculation of the profitability of your investment.
Training to set up a winning strategy
Getting proper real estate investment training can help you come up with a winning strategy. The best real estate investors base their projects on a well-thought-out investment strategy. Strategy constitutes the foundation of a successful real estate project. If you choose a strategy that does not suit your profile, there is little chance that your investment will be successful. This strategy will be the common thread of your project so that all the investments you will make will fit into your vision and serve the same goal. Your action plan derives from this strategy. Keep in mind that a strategy allows you to establish a clear financial structure and also evaluate the risks you can take.
Related: Master These 6 Skills to Succeed as a Real Estate Investor
Training to master the human aspect
Real estate is not only a matter of physical goods and money — the human aspect is at the heart of this field. Housing is a fundamental need for every human being. As an investor, it is necessary that you master this aspect. Real estate investment training will help you to acquire social skills, which will allow you to deal with several categories of people. This includes negotiation skills. Negotiation skills are essential in real estate investment. To ensure the profitability of your investment, you need to obtain an advantageous purchase price from the seller. But don't forget that you also need to get the lowest possible credit and loan insurance rates from your bank and the insurance company. And you also need to negotiate with the tenants of the property. All of this can be achieved by mastering negotiation techniques.
Choosing the right real estate investment training
At the present time, several types of real estate investment training are available on the market. They are so numerous and varied that it is sometimes difficult to find your way around. Here are three criteria that can help you to choose the right training:
The trainer's profile: A serious trainer can be distinguished by his pedagogical ability and his background. It is always preferable to choose a trainer who is, or has been, a real estate investor. Thanks to their experience and their background, they will be able to advise and guide you better than someone who has no experience in this area.
The training program: a training program designed for a beginner in real estate is not similar to a program designed for an investor who is in a recycling phase. In the same way, a program designed for mastering a particular type of real estate investment is not similar to the program of basic real estate investment training. You need to make sure that the proposed program will help you to achieve your goals.
The cost of the training: Keep in mind that the cost of training does not guarantee its quality. However, it is important to choose a training that fits your budget.
Related: The Beginner's Guide to Investing in Rental Properties
So, as you can see, the answer is: Yes, you do need training to become a successful real estate investor. Training will help you acquire the basics, set up a winning strategy and master the human aspect. But in order to see true success, be sure to do your due diligence when it comes to choosing a trainer and choosing a program.
