Recently a female friend of mine asked me if I thought real estate investing was a man’s game. My immediate response was, “Of course not! There’s opportunity for everyone.” I was shocked she thought this – I personally have a ton of female mentors and friends who excel in the real estate flipping space.
Her question did make me wonder: Are women underrepresented in flipping? If so, that needs to change! I explained to my friend that women make excellent flippers – I know many making 6 figures consistently every year. I think she was encouraged by my words, yet it seemed like she wanted a little more reassurance. So, I decided to do some research and support my claim why women make great real estate investors.
Powerhouse flippers like Nicole Curtis (Rehab Addict), Joanna Gaines (Fixer Upper), and Christina El Moussa (Flip or Flop) are just a few great examples who have displayed to the world through mainstream house flipping shows that women too can be successful real estate investors. I always like to say, “House flipping is simple, not easy,” and with the right systems, strategy, and willingness to execute, anyone can succeed as an investor.
Maybe you’re like my friend and want to become a real estate investor, yet are wondering whether you have what it takes to become the next flipping queen. I’m here to tell you that YOU DO! Actually, research shows you have an edge over men in this space that you may not be aware of, and I’m going to share the top 3 reasons why I believe women have the necessary ingredients to be better real estate investors than men.
1. Women Take Less Risk and Don’t Overpay
In many areas of life, men are often labeled as more of the “risk takers” than women. Why is that? Some research suggests that it’s because men have higher levels of testosterone. Makes sense, but you may be wondering how this applies in the context of investing. Studies show that testosterone pushes men to move faster in negotiations in hopes of capitalizing on their opportunities to make more money. Cool – sounds like an advantage – and it can be. However, this is often a double edged sword as too much testosterone for too long often results in unnecessary risk taking, generally leading us men to make poor decisions that we regret in the end. In this case, that means buying a house we shouldn’t have!
In the real estate flipping world, you need to have a healthy balance of being able to move quickly while still making sound decisions. Here’s where the ladies are seen to have an advantage, and, based on my experience, I have to agree. According to a recent article on Entrepreneur.com, “A woman’s lack of testosterone can make her a more disciplined investor”, says LouAnn Lofton. “The way women tend to approach investing is healthier and calmer.” This can prevent them from overpaying or taking unnecessary risks; very relevant when it comes to purchasing and rehabbing houses.
Digging deeper into the necessary due diligence of an investment opportunity, exploring all the options of what could go wrong, and being aggressive when it comes to what they are actually willing to pay are all key ingredients that women already have a natural knack for. While it’s easy to say this approach could prevent women from closing more deals, it often saves the investor from buying the “losers” and coming out on top in the long run.
2. Women Are Better Negotiators and Communicators
When it comes to negotiating, many have argued that men have higher conversion numbers in sales. I canï¿½t say for sure who drew this conclusion or how they came to it. All I know is that I have known and mentored a lot of savvy businesswomen who will tell you – and prove to you – otherwise. Some of the most bad-ass closers I know are women because they have mastered how to communicate with their clients at a high level. When taking a personal poll through my own sphere, I found that men in sales are often seen as ‘aggressive and untrustworthy’ when negotiating a real estate deal, while women are viewed as more ‘approachable and honest.’
I mean, that’s a little harsh to the fellas, but the more I thought about it, it makes complete sense. When is the last time you had an extremely aggressive saleswomen forcing a product or service down your throat? Pushy salesmen have always come in the form of a male and this is a major advantage women have over men.
Over the years, I’ve noticed that people are much more open to negotiating with a woman than a man. Why is that? Some studies have concluded that women are often more concerned with building a genuine relationship and focus on mutual best interest, whereas men can often overlook this in the chase of closing a deal. Naturally, women often cultivate a ‘”safer environment” when communicating and negotiating with the other side, which in turn builds more trust.
More trust generally fosters more transparent communication between the negotiating parties and allows for women to better understand their clients needs on a deeper level. Being that real estate investing deals are often struck when the “win-win” is highlighted, women are more likely to get there faster and seal the deal.
3. Women Are Better Leaders and Team Builders
Real estate investing is a relationship-based industry, and building alliances, developing key partnerships, and attracting talented team members into your world are important. Whether it’s finding deals or having a rock star construction team, the most successful investors I’ve come across have built their empires on the foundations of great leadership, great networks, and great people. One of my greatest mentors is a perfect example of this. Aside from flipping over 200 houses a year, she was not only well respected in her company, she was well respected in the industry. So, what was it that set her apart from the competition? She attributed it to the fact that she was a great leader and had an exceptional team around her.
Makes sense. It was obvious that she was committed to developing her people, was great at building the right relationships, and took massive action daily towards her goals. I admired that in her and it was something I’d rarely seen in the real estate investing space among my male mentors. Most of the men I was around were solo investors, and the more I researched why, it made a whole lot of sense.
In an industry where big massive profits are up for grabs, many like keeping the “trade secrets” to themselves. Men are naturally more inclined to play their cards close to the chest and protect the fortress. I’ve found that women can relate, but prefer collaboration more, hence why they thrive in team environments. “If you want to go fast, go alone. If you want to go far, go together.”
If you’re interested to know more how women shape up against men when it comes to leadership competencies, check out the chart below. Not only does it mirror my experience, it supports why I believe women have all the necessary ingredients to thrive in a space like real estate investing which heavily relies on leadership.
Whether you’re male or female, I’ll end by saying this. It’s not how you score on paper or what the data in a case study reveals that defines our ability to go out and be successful. The belief in ourselves, willingness to take action, and the courage we show along the journey are what empower us to unlock new levels of a rich and fulfilling life. If you have dreams of becoming a real estate investor, do it! I would hate to see you pass on the opportunity due to any limiting beliefs or outdated stereotypes that may be holding you back.
With the right ingredients – models, systems, mindset, and mentorship – and trusting in the process, you will become a great investor and surpass your wildest expectations. Yeah it can be scary, but wasn’t just about everything the first time you did it? If you are considering becoming a real estate investor, and want to know more about how you can take the next steps in making this dream a reality, feel free to reach out to me personally. I love connecting with new investors and watching them take those first steps into a whole new world of opportunity – a world that is known for making more millionaires than any other industry.
In the meantime, invest on my friends!