We’ve all heard that phrase at some point in our lives, but have you really stopped to think about what it means? It’s in reference to the use of willpower to overcome a physical obstacle. Fairly straightforward. For real estate investors, however, there is more wisdom to glean from that age-old saying.
In this business, there are certain risks and obstacles that will stand in your way to success. Not every real estate investor will make it to the end. They won’t all see their cash flow reach the levels that they want to see, they won’t all grow to acquire multiple income properties, and they won’t all find financial freedom. It’s because there were things standing in their way and they were not able to overcome them.They were lacking perhaps in the right resources or the right strategies. They might blame it on timing or even on another person or company.
Ultimately, however, so much of success comes down to the mind. It’s about willpower.
There are certain things that every real estate investor must know and believe if they want to find real success in this business. Without the right convictions guiding them, they will find the road that much more challenging.
There is a common thread among every successful real estate investor: a passion for opportunities. You have to have a drive and a vision for your own growth and future, be it in acquiring more investment properties or in growing your cash flow. Are you actually excited about doing what it is you’re doing? Here’s the thing: even passive real estate investors have to be engaged to some degree. They also have to be the driving force behind the growth of their investments and their passive income. If you’re not going to be the one chasing opportunities and seeking after your own success, no one else is going to do it for you.
One of the crucial elements to success in real estate investment regardless of strategy is details. The details are so important, and we see that most in whether or not an investor or manager follows through with their due diligence. That could be in the buying process (neglecting to run the numbers or complete a thorough property inspection) or in the management (failing to perform thorough tenant screenings or check in on the property).
The finer details of the business matter. Whether or not you yourself are the one taking care of them is irrelevant: you need to ensure that if it’s not you, it’s someone you trust.
No matter what kind of investor you are, strong emotions are always bad news. It doesn’t matter if they’re positive or negative emotions. As emotional creatures, human beings are easily swayed by feelings. Even the most level-headed and willpower-adept among us can make bad choices when strong emotions come into play.
What’s valuable here is your emotional intelligence. It’s not just about empathizing and understanding the emotions of others, but being able to process, understand, and communicate your own feelings. The more you can process what you feel, the more you’ll be able to control it and avoid impulsive decisions and clouded judgment.
People who believe that they have to do everything all the time and be everything to all people are inevitable burnouts. It’s no less true for real estate investors. As owners, your job description should be just that. Owning the investment property, seeking out investment opportunities, and earning passive income. Period. You don’t need to be the one answering 3 am plumbing calls and negotiating with contractors.
Your answer to success is this: get out of the weeds. If your stuck bogged down with minute problems and details that really aren’t in your job description, it’s time to talk to a turnkey real estate investment provider and let someone else handle it!
Related Article: 4 Things Passive Real Estate Investors Need to Know About Property Management
Lastly, successful real estate investors know that more than anything, reputation matters. They know that there will come times when costs must be cut and sacrifices must be made, but never at the expense of service and reputation. They know the value of excellent property managers who take good care of their investment properties: not only for their sake, but for their reputation. They know how valuable it is to maintain a good relationship between tenant and management.
They know how important it is to follow the law and do everything with integrity and grace. Ultimately, that integrity is what carries us through to new opportunities, creates loyal tenants, and leads to long-term success.
And ultimately, that is what every real estate investor needs.
For investors seeking success, it all starts with your mindset. Begin with believing that success is within your reach and then turn your attention to the finer points of the business. Once you have your mind set on the right things, you can take action knowing that your priorities are in check.
What keeps you grounded as a real estate investor? Share your thoughts in the comments.
Scaling up your business takes a different kind of thinking. Listen to this episode of the Experience Matters podcast to learn about how mindset made all the difference for Memphis Invest!