By Kim Parmon, July 22, 2019
In my career I have helped a lot of investors buy and sell properties. I have watched incredible successes, like the time my client Paul bought a condo at auction. He bought it sight-unseen, not knowing what he was going to find when he got inside. Upon opening the door he discovered that it needed paint and new flooring and was otherwise in perfect condition! After selling it in a multiple offer situation he made an incredible return on investment. This money was used to help his mom retire and it was a wonderful experience! I have also witnessed epic failures in the investment world, like the time some clients of mine rehabbed a home in a high-end area. I knew what they wanted to sell the place for and therefore had expectations of what the design must look like. When I drove up to the property I realized how far off the design was from the mark they needed to hit! They had let their contractor pick the finishes and the final product was a big disappointment. They sold the place so far below what they were expecting that it was an awful experience for everyone.
So what makes an investor successful? Is there a trait that the savvy ones seem to share with each other? From my observations: yes, there sure is. And it’s what makes anyone good at anything: a constant quest to be better. When I meet a new investor who wants to work with me I pay a lot of attention to their attitude, regardless of experience. Are they cocky? Do they feel like they have a fail-proof formula? Do they feel like there’s a code to investing and they alone have cracked it? If the answer is yes to any of those questions alarm bells go off in my head.
Here’s the thing about real estate: it’s always changing. What’s on trend now is going to be different in a year. Interest rates are constantly in flux. The economy shifts the way buyers act. So there is no formula to success that doesn’t include constant learning. But this isn’t something that you need to do on your own! Employing a savvy team of experts and leaning on them for advice is a big help. Do you want to know what’s happening in the market? Ask a REALTOR®. Ask your investor friends. Do you want to know what’s happening with rates and how that might affect the market? As a lender you trust. Do you want to know what finishes to put in your flip? Walk through some open houses or, better yet, ask a designer (or your real estate agent) what people want right now. You don’t have to do this on your own but you do have to realize that you don’t learn to be a good investor in a class and there is no formula that’s going to give you unwavering success. Real life experience is what it takes! And real life experience involves constant self-improvement.
I wish you the best in reaching your investment goals!
Kim Parmon
Principal Broker | Earth Advantage Certified | OR
She/Her
Kim Parmon Principal Broker Lead Listing Agent Earth Advantage Certified | OR kim@livingroomre.com Oregon is the fifth state that Kim has called home in her life, and this one is sticking! After moving multiple times in her childhood, Kim fully understands how empowering homeownership and having roots is...
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