Some of the biggest critics of passive real estate investment will claim that it’s too slow to really work. Here’s the thing: it’s only slow if you let it be slow. The secret to success as a turnkey real estate investor or in any type of passive investment is about your mindset. It’s about your approach. If you allow your investment to be truly passive in that you aren’t doing anything, of course it’s going to be slow.
If you want to build that million-dollar portfolio through passive investing, you have to approach it differently. You have to adopt a business mindset.
It’s time to stop letting your investments run themselves and time to take charge of your own financial future. These are five ways adopting the right mindset can take your investments to the next level.
5 Ways a Business Mindset Elevates Your Passive Investment Portfolio
You adopt a growth mindset.
When you begin to treat your investments like a business, you start to prioritize growth. This is essential when you want to create streams of passive income. You have to actually scale your investments and acquire multiple income-generating properties. When you set your mind on growth, you can focus on more quickly building up your portfolio. The more quickly you do this, the more quickly your passive income—and your capabilities—build.
You understand the value of partnerships.
Business isn’t a one-man show. Successful real estate investors know this and surround themselves with reliable and valued partners, companies, and contractors. Success only happens when we as investors value building strong relationships and valuable, effective networks that serve our investments efficiently and effectively.
Are you doing all that you can do to ensure that you’re running a tight ship? Are you active in reaching out and building those relationships? Do you maintain the ones that you already have? If you’re tempted to do it all, it’s time to step back. You can only do so much. Don’t be the thing that limits your success.
You look for efficiency.
When it comes to business, it’s all about efficiency. You have to make sure that every resource is being utilized not just well but in the best possible way. Sometimes we can get sucked into this bad thinking that tells us that if we had more resources, more connections, or some other great advantage, we would be so much better at investing. We’d be further ahead and we’d have this thing figured out.
What we fail to realize is that it’s often not about what we have, it’s about how efficiently we manage what we do have. This is how successful investors emerge from humble beginnings. You can find investment success and literally start with nothing.
It takes that eye for efficiency. Are you willing to cut the fat not just from the investment side of the equation, but from your own life, to succeed?
You constantly rethink what works.
Successful passive investors are still passive in many ways, but they are hardly disengaged from their investments. One of the biggest components of a passive investor’s job is strategy. They must constantly look at what works and what doesn’t work in their portfolio. It takes communicating with their turnkey company and working to figure out what direction is ideal. They’re always trying to hone in on which direction is best, looking for new ways to maximize profits and minimize risk, and are always open to rethinking their portfolio.
No investor succeeds by letting their investments run themselves. Be active, engaged, and strategic.
You always have a plan and a purpose.
Finally, part of being business-minded in real estate investing is having a purpose. Every business owner has a plan and a vision for their company, and so should an investor. We’re not talking about dreams to retire young, have a million-dollar portfolio, or quitting your day job to become a world traveler, either.
The purpose must be within your actual investments, too. Why are you investing and choosing to invest the way that you do? Why invest in the markets that you do? What are your specific goals? Cash flow? Property acquisitions? These are questions to ask and answer as you begin to invest.
There is a danger in investing just for its own sake, while a purpose will keep you focused.
When you approach investing in real estate with a business mindset, you're igniting a drive to push forward, grow, and measure your success. Passive investing becomes not something to do "on the side" but a true ambition and a worthwhile path to achieve the financial freedom that you have always wanted.
You can start today with Memphis Invest. Schedule a one-on-one with our portfolio advisors.