In life, there are few things as valuable as the right real estate strategy. With it, everything seems effortless. Without it, you’re just left picking up the pieces and wondering where things went wrong.
It’s the same in real estate. But while the quality of your strategy is of the utmost importance, remember that it’s easy to get caught up in strategic mistakes that doom your enterprise before you’ve even started. Let’s take a look at three potential reasons your own real estate strategy hasn’t been taking off.
Reason #1: You’re suffering from “Perpetual Planning.”
Essentially, you’re stuck in limbo, constantly analyzing the market and wondering about the right time. A little caution is a good thing – in moderation. But you’ve forgotten the old axiom: a good plan today is better than the perfect plan tomorrow. Except you’ve been stuck trying to find the perfect plan tomorrow rather than put today’s good strategy into place by taking strategic action.
Reason #2: You never accurately read the market.
You can’t develop a good strategy unless the information you’re working off of is accurate. If you base an entire real estate strategy on a faulty premise, it doesn’t matter how hard you try to succeed: you need to embrace the correct information and work from there. Problems like overestimating local real estate markets result from working off of inaccurate information to begin with.
Reason #3: It’s the wrong real estate strategies.
Dwight D. Eisenhower said “plans are worthless, but planning is everything.” In other words, don’t hold on to a faulty strategy if it’s not serving you; adapt to the circumstances of the real estate around you and constantly re-formulate your plans. The best real estate investors are ones that estimate the markets properly and adapt to the conditions around them – no matter how good you thought your strategy was, it’s important to know when it needs to be simply thrown away.