Do you have what it takes to be a successful investor? You don’t need dozens of contacts, thousands of dollars in the bank or the best investing team to be a real estate success. Sure, those can come in handy, but they are not essential to finding and closing deals.
Think about the people you work with or have tried to work with in the past few months. These are most likely people you are genuinely fond of, trust and enjoy being around. If they bring anything else to the table, great, but their personality alone makes them attractive to work with. Knowledge of numbers and the ability to break down a comp are important, but not nearly as important as personality. The single most important skill you need to be successful is the ability to be a people person. Simply put, the more people like you the more they will want to work with you. Here are five reasons why personality is so important as an investor.
- Likability. It cannot be understated just how important it is to be liked. This doesn’t mean you have to go out of your way to bring your team lunch or to shower them with gifts all the time. Often, it is the seemingly minor things you do that can have the greatest impact. Promptly returning phone calls or emails, delivering bad news as soon as you get it, remembering someone’s name or asking about family are all things that people will remember about you. Something as simple as keeping a positive attitude during difficult deals will also help you stand out from the crowd. How you treat people and how you interact play a key role in your ability to grow your network and ultimately improve your bottom line. Simply put, if you are nice to people you can expect them to treat you the same and your business will grow because of it.
- Trust. There is a rule of thumb in real estate that if there is ever a doubt on a deal you should seriously reconsider. Not every deal is going to be a home run or the deal that creates a windfall. If you proclaim the deals you are involved in as such you will instantly lose credibility. On the flip side, if you are realistic about things you can bet people will feel more comfortable working with you. Regardless of what side of the transaction you are on, it is critical to always be as objective as possible. If you are honest and open about things, people will be much more inclined to want to work with you in the future. Over-exaggerating about a deal, may help close a one-off transaction, but it severely dampens your reputation. Your level of trustworthiness is something that the people around you not only measure you by but is easily remembered.
- Confidence. Confidence and a strong personality often go hand in hand. There is a huge difference between confidence and arrogance. Confidence is walking into a room or a situation and knowing you can deal with whatever comes your way. Arrogance is letting the world know everything you have achieved, justified or not. If you have a great personality you naturally feel more confident talking to people at networking meetings or investment clubs. Instead of listing to stories about lost deals, bad tenants or rocky partnerships your stories will be filled with positive interactions. Nobody wants to hear about how many deals a fellow investor lost. They would much rather hear about the success you had than the failures. Not only are your stories more interesting, but positivity has a way of spreading. People like being around people who are positive and find solutions instead of creating bigger problems. It is important to keep this in mind with every conversation you have.
- Networking opportunities. Positive referrals have a way of spreading throughout your network. It is no secret that referred deals are much more beneficial than any other lead you can get. Not only is the lead free, but it has a much higher chance of closing. As is the case with improving your likability there are a few simple things you can do to increase your networking opportunities. For starters, every time you are referred a potential deal you should treat the lead like gold. Regardless of the potential, or the likelihood of closing, you should always do right by the referral. If you can’t help them out, give them as many options and resources as possible. Also, reach out to the referral source and thank them for the opportunity. If they get a thank you call, text or email from you there is a good chance it won’t be the last referral you get from them.
- Benefit of the doubt. You will be amazed how well people respond simply by being nice. If you constantly ride your team and critique and criticize them, they will do the bare minimum to finish the job. However, if you treat them like professionals, pay on time and let them voice their opinion they will go the extra mile for you. The next time you need a rush job or a favor they will be much more inclined to do so for you. They will finish every task to the best of their ability, show up early and stay late. By being nice you will get the benefit of the doubt in most situations.
If you can be labeled as a “likeable person” it can open many business doors for you. Keep this in mind at your next networking event or when you are faced with adversity on a project. A good personality goes a long way.