The Psychology Of Success In The Real Estate Investing Game

During the 1980s, if you were going to go on a diet, popular periodicals would advise you to “think thin.” The magazine articles were reluctant to explain what that meant, but people knew that was what they should do. Internalize the mindset of the thin, whatever that was. It follows that, in order to become rich, you should be able to accomplish that by adopting the mindset of the wealthy, right? Actually, this does work. More specifically, you ought to adopt the mindset of the successful real estate investor.

The best real estate investors are opportunists. They always have their feelers out for new moneymaking opportunities. They place themselves in the center of the flow of information. They “live the life” of the successful real estate investor, in a manner of speaking. Because of this behavior, they notice things that others do not.

Ken McElroy, author of The ABCs of Real Estate Investing, which is part of the Rich Dad, Poor Dad series, states that it is all about noticing patterns. If you look at enough properties, explore enough areas, talk to enough people, he said, you will start to see these patterns. Then certain things will begin to change. 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.

Don't forget: fortune favors the prepared mind. Opportunities for profit are all around us, but if we are blind to it, it will seem as though it doesn't exist. The prepared mind notices opportunity.

Ken McElroy emphasizes repeatedly that being successful in real estate is a process. It isn't an event that happens instantaneously. It is something that you work towards every day. As you work through this process things begin to happen for you.

A successful real estate investor focuses on doing a little at a time, on educating himself on one subject or another, or making this particular deal. It is a “walk before you can crawl” process.

For example, McElroy says that if you have located a potentially profitable deal, you can get the necessary funds as others will want their own piece of the action. This isn't about negotiation skills necessarily, he said. Clearly, skillful negotiation can net you an even better deal at times, however you don't need to worry about whether or not you can hold your own at the negotiation table. Focus on searching for good deals.

Though investors are always evaluating risk, always cognizant of it, good investors are not scared off by it. They decide whether or not the risk seems 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 assess risk may believe everything is too risky. They assume, for example, that a larger deal involves to great a risk for a beginner to handle. They assume that because they think the investor is sinking a lot of his own cash into it when, in truth, a larger deal has the potential to make a larger sum for those involved. Therefore, you may be able to find backers for this sort of deal. At the end of the day, not have to put up as much of your own money as you would've on a smaller transaction.

Real estate investment is just like anything else you might want to learn. Well, for one thing, you have to learn the ropes. And you learn by doing it. Go out and examine properties. Take trips to cities as if you had the intention to make a purchase. Log on to the Internet and read about areas. See what others have said regarding the real estate climate a particular area. Get to know people. In no time, you will have learned enough to start considering making a move. You don't have to have a wad of cash at your disposal before you start playing the game. All you have to do is go out in the world and enjoy yourself. Everything else will come in time.

Article Source: http://www.propertymagnate.com/articles

Alex Anderson Is A MN Investment Property Specialist. Searching The MN MLS Real Estate Listings For Money-Making Investment Properties. Get A Free Copy Of "The Investors' Rental Guide" At www.GreatInvestmentProperty.com

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