8 Greatest Traits of a Top Real Estate Investment
As value creators, many times we buy under-performing
properties that need an infusion of new management
and capital to add value to a real estate investment.
The better we are at turning around a struggling asset,
the more income and value we will create.
Having turned around hundreds of properties over my career
and written a book on the subject, I have uncovered the most
important ingredients to look for when hiring a turnaround
management leader. Finding the right company and person
to execute a turnaround is the most important decision you
will make on your new investment that will directly affect
your bottom line. Why?
Well, because it is important that the traits of the turnaround
leader inspire confidence in the ultimate renewal of a
struggling property. Not only must the turnaround leader
be self-confident, they must project it. Most leaders do
not fit a mold but have their own style.
Successful turnaround leaders seem to sense which task
merits the highest priority, are able to seize the initiative,
and devote enormous energy to driving the property
operation and themselves to task completion.
They consistently are dogged in their pursuit of objectives
and the accomplishments of goals, while maintaining the
flexibility to change intermediate goals as the situation
develops. They are very determined and competitive people.
Top 8 Traits of a Turnaround Leader
1. Tough minded:
Very few turnaround people refer to
themselves as nice guys. Generally, the turnaround person is
thought of as the tough person because they are dealing with
tough situations. Since problems are coming up quite often,
the turnaround leader must be tough minded.
2. Highly Competitive:
Turnaround leaders hate to lose. They
enjoy dealing with challenges so they can get a rush when they
overcome them. They will not allow obstacles to get in their
way as they pursue a goal. Turnaround leaders will grind out
everything to win.
3. Entrepreneurial Instinct:
Entrepreneurial instinct, coupled
with strong professional management skills, is a rare combination
among most business turnaround leaders. Some leaders have
one of these characteristics, while others have the other
characteristic. Few have both.
Turnaround people need both characteristics to do an effective job.
They need good professional management skills in order to
evaluate and cope with the multifaceted problems facing a
troubled property. Also, they need entrepreneurial skills in
devising, searching out, and seizing opportunities during every
stage of the turnaround.
4. Skilled Negotiator:
Many of the problems that have been
created over time will require some sort of negotiated solution.
All through the turnaround process, the negotiation skills of
turnaround leaders are tested.
5. Action Oriented:
Turnaround leaders move decisively but
do so using reality, not fantasy. Meeting the challenge of
accomplishing goals requires constant action and relentless
behavior. In fact, most turnaround leaders have better results
when put in a situation when there are many problems.
These leaders have the ability to raise the level
in others so that their goals are achieved. They understand
that they can’t do everything themselves and motivating others
can create faster results.
Because of the many problems, turnaround
leaders have the ability to see outside the box so that they
can creatively solve problems.
Understanding the process and
communicating it to the stakeholders is an asset many
leaders have. Part of being a good negotiator requires
the skill of influencing others to your point of view. Most
good turnaround leaders have this trait.
Make sure the turnaround leader you hire for your next
underperforming property is an experienced and successful
turnaround leader. Hiring a management company or person
who has experience running stabilized properties may not be
the best candidate for a turnaround property.
Use the 8 Traits of a Turnaround Leader mentioned in this
article, to assess and evaluate the management company
you hire on your next real estate investment turnaround
I hope this serves you. I look forward to helping you reach for the stars!