Whether you are new to investing in real estate or a well-seasoned investor, advice can be a key ingredient for sustained success and a great way to increase your skill set and knowledge in a certain area. Even so, real estate investing can be quite complex, and everyone’s experience can prove different. As such, it is best to keep several things in mind when receiving advice on how to invest in real estate.
Who are you getting advice from?
Taking into account who is giving the advice is foremost important. This is duly crucial when starting out as an investor, though investors of any level of experience should understand the knowledge and experience level of the person giving advice. Ask yourself if the person has the understanding and know-how to provide the right answers and if their experience is backed-up by proven success.
Likewise, did this advice prove successful for the person giving it? Do they follow their own advice? These can be vital questions to ask before applying such information to one’s own investing. If someone follows the advice they are giving, that is a sure indicator that such advice is likely worth remembering.
Who is benefiting from the information?
It is also important to understand who benefits from such advice. This is especially true in real estate, where different people may have competing interests. Particularly when beginning to invest in real estate, it may seem beneficial to ask anyone and everyone for their advice or input. But knowing how the person you ask may benefit from providing such information is key.
As an example, you will most certainly receive a biased answer when asking the seller of a property whether you should purchase it or not. Understanding exactly how the person giving the advice may benefit or not from providing you with that information is crucial. So when asking for advice or information in the real estate market, always make sure that you are the one benefiting the most from the advice.
Trust but verify
This means remembering to trust but verify the information you are getting. To this end, there are many resources for investors to utilize when seeking information about investing. Third-party websites provide information to investors that is unbiased and verifiable. Such resources include Investimate and MLS services, for example.
With so much information available these days, it can be difficult to verify if advice about real estate investing is trustworthy. Therefore, it is imperative that an investor be open to trusting any provided advice, but know that such information should always be verified. Resources such as these provide investors with a platform to easily verify if the information is correct.
Overall, it is important for every investor, regardless of experience, to be mindful when taking any advice. Understand that others have their own interests which may contradict your own.
Know that any information you receive should always be verified to determine whether it is worth following or not. And know the questions to ask. It can be difficult to get an answer for a question if you are unsure of what to ask. Be open to the advice of others, but understand who is giving the advice, whether or not they are qualified to provide it, and whether or not it is worth remembering and following, at all.