There’s a lot to be said for making money in property investing.
However, sometimes, it seems as though there’s a lot more being said about how to go about doing it.
While it’s definitely important to learn the objective steps you must take to become a successful property investor, it’s been my experience that most people overlook what is by far the most important element to be successful.
Mindset: the Essential Key to Making Money in Property Investing
If you want to make money investing in properties, you must develop the right mindset. Follow the seven steps below, and you’ll have the frame of mind it takes to begin making money in real estate and continue doing so year after year.
1. Remember: Patience Is a Virtue
If it were possible to become wealthy overnight, we’d all be wealthy.
The reason most people aren’t is that they lack patience. They don’t want to wait for their investment to grow. They want to watch it skyrocket after the first week or month. Some people get antsy after 24 hours!
Looking back on all my years in this industry, I’d say one of the easiest ways to predict the success an investor will have is by looking at how patient they are.
You can have all the money in the world. You can even have enviable insights into the real estate market.
If you don’t have patience, nothing else matters.
Keep in mind, making money in real estate doesn’t require the patience of a monk. If you check out client success stories, you’ll see how quickly our investors began seeing results.
However, that’s only because they have the discipline for a long-term strategy.
2. Stay Focused on Your Desired Outcome
In fairness, this can sometimes make our first tip for making money in real estate a bit difficult.
On the one hand, I’m encouraging you to be patient.
On the other, I’m telling you that it’s vital to keep thinking about that goal you’re after.
While staying focused like this may make you a bit impatient at first (e.g., “I can’t wait until…”), in the long-term, it’s the perfect supplement.
Other investment “opportunities” will vie for your attention.
There will always be shiny objects you’ll be tempted to chase.
If you can remind yourself about all that you have to gain by staying disciplined – staying patient – you’ll have an easier time ignoring these short-term enticements.
3. Don’t Become Emotional
I absolutely love making money in real estate.
It’s my favourite topic of conversation. It’s my favourite thing to learn about. I could – and do – spend hours doing both. My love for investing in properties is why I turned it into my full-time profession.
If you can’t tell, I get very excited just writing about this topic.
But when it comes time to actually invest in properties, I put my emotions to the side.
Jesse Livermore was a world-famous American investor, known as the “Bear of Wall Street.” While his investment career was a tumultuous one, he was widely lauded for his ability to remain detached from popular opinions that swayed the market.
He once said:
“The financial markets will remain the same yesterday, today, and tomorrow simply because of the four basic human characteristics of fear, greed, hope, and ignorance.”
Sure, the market changed a lot during his lifetime, but Livermore was right about what moved them. He didn’t let those things move him, though, so he was able to capitalize.
Here’s another telling quote from one of the wealthiest men alive, Warren Buffet:
“Investors should remember that excitement and expenses are their enemies.”
The same advice holds true for those interested in making money in real estate.
You won’t succeed if you throw money at opportunities when you feel indestructible because the market’s doing well and then immediately try to sell your property the moment it goes the other way.
Becoming emotional at times is understandable. It’s human. Letting those emotions get to you, though, is a flaw that will cost you – literally.
4. Make Education a Priority
“I have no special talent, I am only passionately curious.”
– Albert Einstein
Fortunately, making money in real estate doesn’t require a profound knowledge of physics.
That said, I love this quote from Einstein because it highlights the power of prioritizing one’s education. When it comes to investing in properties, the more you know, the more options you’ll have. You’ll see opportunities where others can’t.
As you become successful, it will also become much easier to stoke this kind of curiosity. You’ll look forward to learning even more because you’ll have firsthand experience with its benefits.
It’s when you first start out that it can sometimes be difficult. Again, that’s when patience is a huge asset.
The good news is that the Internet is full of blogs, eBooks, videos, and other resources that make this easier than ever before. Best of all, the vast majority of them are completely free.
5. Become Action-Oriented
A lot of people – maybe even the majority of people – would love to enjoy the benefits of investing in real estate.
Unfortunately, they never do because they never take action.
I’m not saying you should empty your bank account today and buy a property with it.
But you do have to take some kind of action to become an investor and reap the rewards.
This could mean educating yourself about investing.
It could mean creating a budget, so you have the funds to invest.
Maybe it’s finally talking to your spouse about this opportunity.
Whatever the case, there comes a time when you’ve done enough thinking and finally need to do something about it.
Don’t be irrational, but don’t be indecisive, either.
6. Learn What Bad Advice Is and then Ignore It at All Costs
“Success in life is the result of good judgment. Good judgment is usually the result of experience. Experience is usually the result of bad judgment.”
– Tony Robbins
For some of you, taking action isn’t a problem.
Maybe you know this about yourself.
Maybe the problem is that you take action far too often.
Even if that’s not the case right now, this is still an essential step to building the kind of mindset necessary for making money in real estate.
So if you’re currently fighting indecision, this advice will eventually apply.
That’s because the world is full of bad advice. Just like I mentioned it’s not hard to find educational resources about investing in real estate, it’s also incredibly easy to find advice from people with absolutely no experience.
Mr. Robbins brings up a great point about the relationship between success and making mistakes, but that doesn’t mean you shouldn’t do your best to avoid making unnecessary ones.
When educating yourself about making money in real estate, here are some red flags you should look elsewhere:
- The advice is of the get-rich-quick variety
- The person giving it lacks any credentials or experience
- They’ can’t offer testimonials or success stories that prove they’ve been able to teach others
- They don’t use their real name or show their face
As time goes on, spotting bad advice will become second nature. The same goes for ignoring it and staying focused on your goals.
7. Learn to Ignore Well-Intentioned Detractors
Similarly, some of your friends and family may try to convince you that making money in real estate isn’t the right goal for you.
That’s not to say they don’t have the best of intentions.
They probably do, but that doesn’t mean they’re right.
Once again, this comes down to remaining laser-focused on your goal and the path you need to take to get there.
Unless your loved one has more experience with making money in real estate than you or the person you’re learning from (more on that at in a moment), you should probably ignore their advice.
You don’t need to be rude. Thank them for their concern and explain to them why you know investing makes sense for you.
The Shortcut to Developing a Winning Mindset
As I’ve said countless times before, changing your mindset will change your finances.
It really is that simple.
Of course, some of you may not want to wait to begin making money in real estate until after you’ve successfully gone through all seven steps listed above.
Clearly, you missed the first one.
I’m kidding, but while I still encourage you to eventually get through the entire list, we can help you increase your net worth in the process.
We’ll provide you with the education you need to understand this market and what investing entails. We’ll give you those all-important-opportunities to take action, too.
The A-Team Property Management mentor program is designed for people who want an expert’s guidance to help them get started in property investing and provide them with further direction for the rest of their lives.
I know that’s a big claim.
So please feel free to contact us with any questions you may have or to schedule a meeting when we can discuss the particulars of this mentorship in further detail.