You need a winning real estate investment mindset to ensure that you have the maximum chance of success. This is the best real estate investing advice ever. If you want to know the biggest secret to real estate investing success and how to become a real estate investor that creates massive wealth then having the right mindset is where it all starts.
So, what traits do successful real estate investors have? Through my comprehensive research and my own 12+ years of experience in the real estate investment field, I believe that these are the most important traits of a successful real estate investor:
1) They are Knowledgeable
Successful real estate investors really know their subject. Not only that, they have a thirst for learning more and always want to stay up to date in the ever-changing world of real estate investment. They also keep their fingers on the pulse.
A knowledgeable real estate investor knows; the best locations for investment, the right strategies to use and their numbers inside out.
A knowledgeable real estate investor can spot trends that are too their advantage before others do. They know exactly what to look for when it comes to a successful real estate investment project. The knowledge that successful real estate investors have minimizes their fear so that they can make the right decisions.
2) They are Highly Focused
In the world of real estate investing, there is always someone who will tell you that they have a new secret strategy that you need to take a serious look at. A lot of novice investors will drop what they are doing and divert their attention to these distractions that promise easy money in real estate.
The best real estate investors are never distracted by the promise of the grass being greener elsewhere. If they do come across something that piques their interest then they will make a note to investigate it later on. They know exactly what they want and nothing, or nobody, will get in their way.
There are many potential obstacles with real estate investing and if you have laser focus then you will overcome these obstacles a lot more easily. Having a laser focus when you are starting a real estate business is critical.
3) They Have Patience
You have looked at a number of different opportunities and you are desperate to make a start with your real estate investment business. When you are in a state of desperation, you are more likely to do something that you might regret later, such as offer more money for a property than you should.
A lot of new real estate investors end up in a desperate state. If you find yourself feeling desperate then you must distance yourself and keep calm. Sellers can sense a desperate real estate investor and they will try all kinds of tactics to make you pay more. Patience is something that you must have to be successful.
It is understandable that you will want to act on real estate opportunities right away. The pressure builds up inside you and you believe that by taking action you will relieve this pressure. You will relieve the pressure initially, but if you make the wrong decision in your haste then the pressure will return and be more intense.
4) They Never Make Real Estate Investments Based on Emotion
Getting emotional about real estate investments is understandable. You have a goal of building wealth with real estate and you want to get started immediately. But if you make the wrong decision based on emotion you could end up making little money on your project or even losing money.
Never make a real estate investment decision based on emotion. We have seen this a number of times and it almost always ends in disaster. Some people will purchase a property at too high a price because they have fallen in love with it.
Others will make a real estate investment decision because they feel pressured to do this. They have spent a long time looking at different opportunities and feel totally overwhelmed. If this happens to you then you must exercise patience and take a step back. Don’t just rush in to buy a property because you feel pressured to do this.
5) They Rely on Their Instincts
It is critical that you are entirely comfortable with every real estate investment that you make. If something doesn’t feel right to you then this is your intuition protecting you. We have pulled out of a number of deals because our instincts told us that something was not right.
You should not just consider the property but also the area that it is in. Also consider how you feel about the realtors involved, the contractors that you will use for the rehab and so on. If any of these factors do not feel right for you then walk away.
Always believe that there will be other opportunities that you can feel good about. There is a lot of money at stake here, so if something doesn’t feel right then be prepared to back out of the deal.
6) They have Mental Toughness
You need to be mentally tough to become a successful real estate investor. There are going to be problems that you have to deal with that you would have never anticipated. If you let these problems overwhelm you then you will be a lot more likely to give up.
Mental toughness will enable you to bounce back from the setbacks that you will inevitably face in the future. People are going to let you down.
Deals are going to fall through at the last minute. Something unexpected is going to come up during the renovations.
Imagine purchasing a property that you thought was sound only to discover that it has a major structural problem that is going to cost thousands to put right. How would you feel in that situation? This has happened to many real estate investors. They did all of the right things, but something was overlooked which could wipe out all potential profit from the project.
One thing that you can absolutely guarantee with real estate investment is that things are going to go wrong. You know that it is a risky business, but you got involved because the rewards are worth the risk. So, work on your mental toughness because you are going to need it!
7) They Build Strong Relationships
The most successful real estate investors create strong relationships with the people that they need to. They have a great relationship with realtors in their target areas, contractors, lenders, joint venture partners, lawyers, city officials and more.
They have a virtual team of the right people. You need to spend time building the right relationships. Knowing the right people and being able to count on them is essential to your success as a real estate investor. So, invest in your relationship building skills.
8) They use the Power of Leverage
You need to fully understand and use the power of leverage. I am often asked “how to invest in real estate with no money?” The answer to this question is by using leverage.
You can become very successful in real estate investing, using other people’s money.
Leverage is not just about finances. You can use leverage to get the most out of the relationships that you develop as well as the real estate investment opportunities that come your way. For example, you may come across a deal that may not be worth that much to you initially, but has the potential to open doors for you in the future.