Top 5 Leadership Traits Every Real Estate Investor Should HaveBy Paul Esajian on January 4, 2019
Investing in real estate is a different kind of business. You work for yourself, but never by yourself. The best investors surround themselves with the best possible team. If you watch any of the investing shows on TV, you see a common pattern. The investors usually work with the same people all the time. This is because they have built up a track record of trust, consistency and relatability. Both sides know what they are getting from the other and are comfortable in the relationship.
Regardless of whether you are talking about a contractor, real estate agent or a marketing coordinator your actions will lead the way. Your ability to lead by example sets the tone for everybody around you. As the investor you are the CEO, quarterback and President of your team. Here are five leadership traits all good investors must possess.
- Vision. If you are going to lead your team you had better know where you want it to go. The best leaders have a vision for their business. This doesn’t mean they aren’t flexible and open to change, but they start with an idea in mind. Without a vision you won’t have credibility to lead. Your team won’t respect you and will ridicule you for constantly change your mind and backtrack on ideas. Even if you take a misstep from time to time, it is better to have power of your convictions than to be wishy washy. Having a vision requires you to listen to people and quickly weigh every option on the fly. When you make a decision, you need to be able to justify it and support it with everything you have. A strong vision for your business will help rally the troops and get everyone on the same page.
- Self-awareness. Your ability to know yourself is one of the best qualities you can have. Everyone, in any business, has some limitations. A common misconception people have is thinking they need to know everything and be able to do every task. It is ok to say “I don’t know” from time to time. If you are aware in your abilities and the perception you have, you will be a much more efficient leader. It is not easy to admit that you aren’t great at something. However, by beating the people around you to the punch you gain instant credibility and come off as much more likable. Self-deprecation is a powerful tool in getting people to work hard for you. The people around you like to see that you are human and know, and accept, your shortcomings. Instead of trying to hide, or minimize them, if you address them you deal with the elephant in the room before they can. Ask your spouse or someone you have known forever to tell you where you need to improve. You may not like to hear the answer, but it can be the best piece of leadership advice you ever receive.
- Ability to learn. As an investor you have a lot on your plate. It is important to constantly stay on top of the industry. You need to be one step ahead of the trends, rather than one step behind. You should take some time out at least once a week and focus on education. Pick an area of the business and make it your focus. The people on your team will lose faith in you if you are relying on outdated or irrelevant information. On the flipside, if they know you are on top of everything, they will work the same way for you. Learning can also be listening to people on your team, or at networking meetings and real estate events. You don’t have to change like the wind, but if there is a better way of doing things you need to be open to it.
- Relatability. The best leaders constantly put themselves in the shoes of the people around them. If you can relate to someone on your team you will have a better chance of influencing them. It may not seem like much but something as obvious as paying someone as soon as the work is done is critical. Having them wait a day or two for a check may not seem that important to you but can be vital to their finances. This is the case whether you are dealing with a small painting job or a big contracting role. Unfair or not, you are often judged on your reputation and how you treat other people. The quicker you pay your team and take care of them at every chance enforces the positive reputation.
- Influence. The more you can influence your team, the harder they will work for you. Influence can be done in several ways. Passion is often contagious. By seeing how much you want something, your team will push themselves to do more. Influence can also be done by minor actions. Simply acknowledging a job well done or getting lunch for the jobsite goes a long way in motivating. Listening to an idea or passing along a name as a referral is a great way to solidify a relationship as well. The people on your team look up to and at you for guidance. Use your influence in a positive way.
The best leaders make the best real estate investors. Constantly look for ways to improve your leadership abilities and get the most out of your team.