This is a really good article on the beliefs of successful investors. I thought it was good enough to share with you on our blog. I really agree with points number 2 and 3. It’s essential to practice self-discipline if you want to be a successful investor. I also think working with the end goal in mind is essential to keeping you motivated and working in the right direction. We discuss that a little in our aritlce on Choosing Your Investment Strategy by Designing Your Future. I hope you enjoy.
Real Estate Mindset – Nine Essential Beliefs of Successful Investors
By Sam Ally
A tale of two investors: Two new investors begin their real estate careers. They get the same education. Same mentors. Same opportunities. One of them goes on to create great success and wealth while the other remains flat broke.
What made the difference?
Success in real estate investing is much more than knowing how to complete a deal. It takes the real estate mindset and habits of a professional investor. Here are some of the real estate habits that you must put into practice:
1. Develop a long-term perspective. Plan 3~5 years in the future. Don’t let ups and downs shake your commitment. Expect a crisis every 2~3 months with problems sprinkled liberally throughout. How do you respond to difficulty? Challenges reveal your true character and how you respond to them is the only thing you can control.
2. Practice self-discipline. Do what you should do when you should do it even if you don’t feel like it. Delay gratification for long-term benefit–successful people do the things they don’t like to do when failures don’t do them. Remember: work 5 years like other people are afraid to, so you can live the rest of your life like other people only dream of.
3. Work with a goal in mind. Don’t work for work’s sake. What would you do with your time if money wasn’t an issue? Spend time with family? Do charitable work? Travel the world? Your answer to this question will tell you what you really want to do with your life. Let these life goals drive you to succeed. Hard work isn’t that hard when it will get you to your goals quickly.
4. Develop a strong work ethic. This is the 40+ formula: you work 40 hours a week for survival and everything after that for success–every hour over 40 is an investment in your future (the average millionaire works 59 hours a week). Don’t waste your work time. Make each hour count.
5. Do first things first. Make a to-do list. Set priorities on each activity, focus on the highest priority first, and work on it till it is done. Ask yourself “what is the best use of my time right now?” and then do it. This is the habit of high performance.
6. Dedicate yourself to lifelong learning. To earn more you must learn more. Study real estate 30~60 minutes a day. Read books, listen to audio programs while driving or doing mindless work, and take courses and seminars.
7. Dedicate yourself to serving others. Success is determined by doing more than what is expected–there are never any traffic jams on the extra mile. You are paid in exact proportion to the value you bring to society. If you want to make more money, create more value for the people you serve.
8. Get around the right people. Your network = your net worth. You will tend to be like the people you spend time around. Build a network of quality people–find those you want to be like, get involved, help those people, be a go-giver instead of a go-getter. If you want to soar with the eagles, you can’t hang out with the turkeys!
9. Never consider the possibility of failure. Failure makes you stronger–fear of failure is what will hold you back. Take calculated risks in the direction of your goals. What is the worst that could happen? The worst is usually not that bad. Make a habit of doing the things you fear. Act boldly, and the fear will leave you. Back everything you do with persistence and determination. Resolve today to never give up. Success is predictable.