Back in the 80s, in regard to dieting, popular magazines would advise you to “think thin.” The magazine articles never actually explained what that meant, but everyone knew that they were supposed to do it. Internalize the mindset of the thin, whatever that was. A logical extension of this idea would be that in order to make money, you should be able to accomplish that goal by adopting the mindset of the rich, right? Actually, this is true. In particular, you ought to adopt the attitude of the successful property investor.
Accomplished property investors see the world through an opportunistic lens. They constantly have their antennae up and ready. They position themselves in the way of information. They “live the life” of the property investor, so to speak. And because of this behavior, they take notice of things.
Ken McElroy, writer of “The ABCs of Real Estate Investing,” part of the Rich Dad, Poor Dad book series, states that it is all about seeing patterns. If you look at enough properties, explore enough areas, speak with enough people, he claims, you will start to notice these patterns. Then things will begin to happen. You may begin to seem lucky. And, McElroy says, this may be luck, however it is a kind of luck that comes with hard work and preparation.
Remember: “Fortune favors the prepared mind." Opportunities for profit are all around us, but if we do not stay alert, these opportunities may as well not exist. The alert mind recognizes opportunity.
McElroy emphasizes repeatedly that being a successful property investor is a process. It is not just something that happens overnight. It is something that you do every day. Eventually things will start happening for you.
A successful property investor focuses on doing things step by step, on educating himself on this or that thing, or closing this particular deal. It is a “walk before you can crawl” process.
For example, McElroy says, if you've located a potentially profitable deal, you will be able to obtain funding for it as others will want a piece of the action. It is not about negotiation skills necessarily, he said. Clearly, those skills can get you an even better deal on occasion, however you don't need to worry about whether or not you can hold your own at the negotiation table. Focus on looking for good deals.
Though investors are always evaluating risk, always cognizant of it, successful investors are not frightened away by it. They figure out whether or not a risk appears reasonable. If the numbers work out correctly, McElroy says, then it is a good deal. If it is a good deal, the savvy investor goes ahead with it.
Easy.
People who don't understand how to accurately evaluate risk may believe that every deal is too risky. They make the assumption, for example, that a bigger deal involves to great a risk for a beginner to handle. They assume that because they have the misconception that the investor is investing a prodigious amount of his own money into the deal when, in reality, a bigger deal has the potential to generate a larger sum for those involved. For this reason, it may not be as hard as you think to find backing for a deal like that. At the end of the day, not have to put up as much of your own money as you would have on a smaller transaction.
Property investment is similar to anything else you might want to learn. Well, for one thing, you first have to learn how to do it. And you learn by doing. Go out and look at properties. Take trips to cities as though you intended to buy. Log on to the Internet and educate yourself about areas. See what others have said about the real estate in an area. Get to know people. Before long, you will know enough to start thinking about making a deal. You don't have to have a pile of cash in your hand before you start playing the game. Just get out there and enjoy yourself. Everything else will come in time.
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