There’s no more proven path to wealth building than real estate investing. However, some people are more likely to be successful than others. And if you’re interested in learning the ropes, you’ll want to begin by cultivating the following traits:
1. Student Mentality
If you look at any industry or specialty – from real estate to professional sports – you’ll find that the most successful people are also the most committed students. This isn’t a coincidence.
People who think they’re experts tend to drown everyone else out. This leads them to miss out on new trends and skills that could help them improve. People who think like students, on the other hand, are thirsty for knowledge and insights. This allows them to constantly acquire new skills, which can be used to improve and grow.
The world’s best real estate investors spend time reading books, attending conferences, listening to podcasts, and scheduling meetings with mentors and peers. You should be doing these very same things.
2. Willing to Fail
Very few real estate investors have the Midas touch. In fact, many of the world’s most successful real estate investors have multiple stories of failure, bad deals, and bankruptcy. The fact that they’re successful today is a testament to their willingness to embrace failure and move past it.
You have to view failure as a normal part of living. To not experience failure is to live your life in a bubble. And if you’re living in a bubble, you’ll find success to be outside of your reach. (Hint: Failing is never something you grow comfortable with, but it does become more palatable over time.)
Real estate investing is anything but cut and dry. It’s a dynamic field with constantly changing rules, circumstances, and market conditions. The most successful investors also tend to be highly resourceful and creative.
For example, you can’t always raise rent to increase profitability. Instead, good investors will come up with alternatives for increasing income. This may include charging pet rent, enacting late fees, allowing tenants to sublet, charging for storage or parking, renting out equipment, etc.
Real estate investing isn’t a short-term game. It’s something you have to stay committed to over the long haul in order to become profitable. This is why the best investors also tend to be the most patient.
The Pareto Principle says that 20 percent of your efforts produce 80 percent of your results. The most successful real estate investors learn to focus on the 20 percent and do more of the things that actively move the needle on profitability.
If you want to be successful in this industry, you have to learn to become more efficient and productive. Otherwise, you’ll crumble under the weight of trying to do too much.
This is very much a people business. Yes, the primary focus is on buildings and land, but that’s just one element. In order to be successful, you have to learn how to network, interact, influence, and serve others. (Note: This isn’t about introversion versus extroversion. There are plenty of successful investors who would place themselves at different points along this spectrum. It’s about being intentional with your time and energy.)
On the outside looking in, people who are unfamiliar with this industry often assume that real estate investors are all greedy, immoral people who only care about making money. And while these people do exist, they rarely last very long.
This industry is predicated on relationship building and honesty. If you cheat someone on one deal, you can guarantee that word of your behavior will spread and other people will be hesitant to work with you in the future. Likewise, honest behavior gets rewarded with increased trust.
Do You Have What it Takes?
Every person has innate strengths and weaknesses. Some people are born with a greater proclivity for patience. Other people have a strong intestinal fortitude, which allows them to embrace failure and move past it. Some people are highly focused, while others are more creative. And it’s these differences that make us human.
The good news is that most of the skills and traits outlined in this article can be acquired and enhanced with intentional practice. Commit to honing these traits over the next six to nine months and see what happens. You might just surprise yourself!
Article Submitted By Community Writer