Real Estate Investing Mindset!

You must take massive, productive action...but avoid the "motivated buyer trap"!

One of the key behaviours that seperates succesful real estate investors from "wannabes" is their willingness, or ability, to take massive action. Real estate investing is not easy when you are starting out. It is easy to get stuck in a loop of taking lots of classes, going to meetings, analying properties but never actually taking action to move your business forward. "Productive" action means action that actually moves you towards your goal. While training and education are a good start, they ultimately do NOT move you towards your goal unless you take the next steps required to make your business real. Coming up with a company name, forming an LLC and buying business cards do not count as productive action! Prioritize revenue generating activity! These are activities that will directly lead to real revenue and profit.

That said, one of the most common mistakes beginning real estate investors make is, what is frequently described as, “becoming over-motivated”.    When you are just starting out, you want nothing more than to get that first project under your belt to prove that you are “in-the-game”.    This mindset often leads to mistakes early on. Rather than trusting your analysis or sticking to a specific target property profile or margin structure, buyers get “motivated”! This can lead you to buying a property that does not fit your profile or where your analysis suggests there is not enough profit.  

Don’t be a motivated buyer.  Be patient and trust your analysis.   Nothing is more of a drag on a growing business than a bad project!   A bad project will devour your time, your optimism as well as your capital!   Choose your projects wisely!