REAL ESTATE The modification of investor behavior leads to a massive 800% increase in the investment rate. Most residential real estate investors invest with their heart rather than viewing their investment as a business, a business that needs to provide cash flow to cover the operation, these investors are content with a return often in the range of 2% or more. worse. in negative territory. When asked, the investor will say that they are looking for capital gains and tax benefits, so they are comfortable with an investment that shows a negative return.
This form of investment strategy is endemic to residential real estate investing, and investors are conditioned to believe that this is a good thing. To maximize your earnings, take note and avoid the following pitfalls, this will require a major adjustment in your investment thinking and behavior.
Behavioral pitfalls to modify:
Do not fall in love with your real estate investment: Many real estate investors make an unnecessary mistake when starting their real estate investment career, they look at their real estate investment in the same way and with the same feelings as when they buy their own. home to live in and this is a critical mistake as emotion, rather than business acumen, takes over, and investment principles fly out the window. Investing must embrace the principles of sound investment, and investors should view investing as a vehicle that will deliver the results they seek without hassle. Let me explain again, when buying an investment property, everything should be about the numbers and nothing about the emotions, look for the financial status of the properties. Certainly let your emotions dictate the purchase of the house you intend to live in where, you would ask yourself emotionally charged questions like “I like” the house, “will I enjoy” living in this neighborhood, and the numbers, if anything. , will appear at the end. liking and enjoying are themes charged with emotions.
2. Change your behavior and start to become a successful investor by evaluating the real estate investment according to your numbers, your financial status. Start asking yourself questions like “Can I buy this property at a discount or full sale price?”, “Is there enough room for a healthy margin if I use this property as a cash flow tool?” Can I get a margin higher than the cost of money to buy this investment? ”. TIP: Keep the emotions out and the numbers in – you’ll be glad you did.
3. Don’t be greedy: A major stumbling block, especially for quick cash investors, is the danger of becoming greedy, very greedy. They get a great wholesale deal on your real estate investment and then try to sell it well above retail, rather than at or slightly below retail price, it costs you more than profit, so stop being greedy. Listen, being greedy, especially on quick cash offers, will come back to bite you.
4. Remember the beauty of quick cash is the quick part. Price your quick offers to move quickly, you’ll end up making more money than if you were being greedy.
5. Why are some investors susceptible to being greedy? It is because they unconsciously fear that this agreement is the last. I call this the scarcity mentality. Don’t fall prey to that. There are many offers out there and this offer will definitely not be the last, unless of course you want it. Start cultivating an abundance mindset, rather than a scarcity mindset, move forward by pricing your offers to make money and sell quickly.
6. Thinking you know everything: nobody likes to know everything … or does they? This is a terrible mistake many investors make and is particularly prevalent when it comes to investing in real estate, and it gets worse after you’ve been investing for a while. They think they know everything there is to know about real estate investing.
7. Listen, the market is always changing just because something worked yesterday does not in itself mean that it will work so well today, it is not only changing the market, but also the rules and laws that govern real estate.
8. The real estate sector is always in a state of flux. There is always something new to learn in the realm of active for-profit real estate investing. Perhaps the learning curve has slowed for those who have learned the basics of real estate investing, perhaps there is not so much to learn, rest assured that you will never stop learning, and there will always be surprises in store for those who know everything.
9. Instant Gratification – Remember, there is no free lunch and there is definitely no easy path to riches. It takes time, effort, and hard work, sorry, you can’t sit on your butt and wish or hope someone else would make you rich, it’s just not going to happen. Unfortunately, for many people from all walks of life and for those who should know better, everyone wants the “instant solution”, the “miracle solution”, the “secret”, to make millions. They all have one thing in common: they crave the “secret” and even if there was a secret, they would want someone else to do it for them.
10. Sorry to disappoint, there are no secrets, just common sense, effort and following the principles of good investment, now this is where the vast majority fail, they do not follow the principles of good investment and if they began to follow these principles, then Some successes seek to take shortcuts that invariably cause them difficulties, you often hear these people lament why I … If you really want to be financially free and wealthy, treat your investment like a business and make sure it generates cash flow.
11. These four great psychological downturns plague potentially successful investors, to overcome them you need to change your behavior starting with the way you think.
Not convinced? Do you want to know some secrets that the rich use constantly?
Secrets revealed below …..
1. Take advantage of your positive thoughts and turn them into reality. What you think it will be
2. Prepare to go beyond your current circumstances.
3. Encourage the ability to believe in yourself.
4. Set and achieve goals
5. Learn to test
6. Take responsibility for all your actions, stop blaming others when things fail or don’t go as planned.
7. The willingness to do what is necessary.
8. Buy a property as a business and do not tolerate the loss.
9. Buy a property right and never pay too much
10. Debt aversion, borrowing only what you can comfortably afford and still making a profit.
11. Run Your Investments Like Successful Businesses
12. Talk to and follow successful people
13. Have a positive mental attitude.
14. Take responsibility for your actions, if so, it’s up to me.
As you can see, there is not much that separates the rich from the poor, it is not the amount of money. He could give a poor man a million dollars and by the end of months he would be poor again, because he has not developed the previous fourteen points. Being rich has to do with you, your thoughts, your beliefs, your attitudes towards wealth, rich money, and yourself. Your mind is the secret to whether you are rich or poor.