There’s really no short cut to real estate investing success. So many people try to find some magic combination that will turn them into overnight millionaires with ultra cash-flow producing portfolios. Some real estate investors do find spontaneous success, it’s not the standard. It is often a long, patient road for many real estate investors to reach their standard of success and to develop a performing, self-sustaining portfolio . Some never reach it at all.
What divides successful real estate investors from those who don’t succeed? It’s not so surprising, but many people don't stop and consider how they can change habits and mindsets in ways that will put them in the right trajectory for success.
There are many, many qualities that people will tell you lead to success. These, however, are a good place to start. Our combined nearly 100 years of real estate investing experience and our work with over 1100 investors has been extremely beneficial in identifying these qualities.
5 Qualities in Successful Individuals
They Take Opportunities to Learn
We should never stop learning. Even when we’re seasoned veterans in our respective fields, there’s always something we can learn from and about. People who are successful in their personal and professional lives are always learning about something. They’re reading, they’re trying new things, they’re finding ways to challenge their own thoughts and stimulate innovative, creative thinking. Without learning, we can too easily become stagnant and close-minded — and risk our ways becoming obsolete.
The best investors understand this is a process of growth and always work to grow a little wiser each day with their investing. That enables them to move into multiple strategies and products as an investor. That diversification is often what really propels an investor from ordinary to extraordinary.
They Know When to Take Risks
Risk-taking is always a balancing act. One of the keys to success, however, is knowing when to step out and risk something. There’s no gain without risk. Successful individuals don’t let fear hold them back or let emotions get in the way of their decisions. While we don’t need to take unnecessary risks, we have to stop letting fear hold us back from being all that we can be.
A great illustration of this is when an active investor decides to open up other buckets of income by becoming a passive investor or even a lender. By earning income actively, passively and through interest, an investor really gives themselves a fantastic opportunity to be earning 24/7 and 365 days a year. However, that requires a willingness to take some risk. Risking giving up total control. Risking giving up the day to day details of some of your hard earned money. The return on that risk should more than offset your decision though and build a stable long-term investing portfolio.
They Have Discipline
In every aspect of life, discipline is key to success. Good habits come from discipline. Progress comes from discipline. Discipline prevents our goals, pursuits and businesses from being flash-in-the-pan. It makes things stick. Successful people have the resolve to get things done when they need to get done. Usually, that includes sticking to a schedule. Routine is important to getting things done. It may get monotonous at times, but it develops good habits.
In real estate investing, a big part of having discipline is getting things done in a timely manner. Responding to emails in a timely manner, returning calls, sending in paperwork whether it be contracts or bank statements or any paperwork needed to keep you moving forward. Point is, you have to be disciplined and committed. If you are, you will succeed.
They Listen Well
In our professional lives, we deal with people — but not everyone deals with other people effectively. Listening is absolutely necessary to effective communication and building meaningful relationships. Most people think they listen well, but how much do we remember about the people we meet with? Are we processing and retaining what we’ve heard? Not always.
Consciously, intentionally listening to the people around us is absolutely necessary to success. Though listening, we discover needs, desires, information and perspectives that are so very valuable to decision making.
They Know When to Rest
Too many times we get caught up in a breakneck pace that leaves us exhausted and drained. The temptation is to think that working all the time will make you more successful more quickly. The truth is, we need to time to step back and rest. Separate work from life. Enjoy recreation, hobbies and good ol’ fashioned R&R. Give yourself space to be creative. Productivity doesn’t always show up on paper. Business success doesn’t come from going at it nonstop. Hard work is required — but it has to be balanced with rest.
As goofy as that may sound, an investor who gives himself or herself time to relax and enjoy the fruits of their labor, will be a more focused and energized investor when it is time to work. There is simply no other way to put it. So make sure that you take care of yourself and schedule in some R&R as well!
What qualities do you see as keys to success? Share them with us in the comments.