Real estate tips for beginning investors

Behavior modification of REAL ESTATE investors leads to a massive 800% increase in investment rate! Most residential real estate investors invest with their hearts instead of seeing their investment as a business, a business that needs to generate cash flow to cover the operation; these investors are content with a return often in the 2% range or even 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 in residential real estate investing, and investors are conditioned to believe that this is a good thing. To maximize your profits, take note and avoid the following pitfalls, this will require a major adjustment in your investment thinking and behavior.

Behavior traps to modify:

1. Don’t fall in love with your investment property: Many real estate investors make an unnecessary mistake when starting their real estate investing career. They look at your investment property in the same way and with the same feelings as when they buy yours. 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. The investment should embrace the principles of sound investing and investors should view the investment as a vehicle that will deliver the results they seek without issue. Let me explain again, when buying an investment property it should be all about the numbers and nothing about the emotions, look at the financial status of the properties. Surely let your emotions dictate the purchase of the home you intend to live in, where you would ask yourself emotionally charged questions such as “I like” the home, “I will enjoy” living in this neighborhood, and the numbers, if they are calculated at the end. , liking and enjoying are topics loaded with emotions.

2. Change your behavior and start becoming a successful investor by evaluating real estate investing by its numbers and 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 distribution if I use this property as a cash flow tool?” margin can I get above 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 pitfall, especially for fast-money investors, is the danger of getting greedy, very greedy. They get a great wholesale deal on their real estate investment and then try to sell it well above retail price, rather than at or slightly below retail price. This blocks the sale and the hapless greedy investor has to hold onto the property for a longer period of time and will invariably end up taking less than they could have had, had they sold at or just below retail price. Greed costs you more than profit, so stop being greedy. Hear being greedy, especially on quick cash deals, will come back to bite you.

4. Remember that the beauty of fast money is the fast part. Price your quick deals to move quickly, you’ll end up making more money than if you were being greedy.

5. Why are some investors likely to be greedy? It is because they subconsciously fear that this deal will be their last. I call this the scarcity mentality. Don’t fall prey to it. There are plenty of deals out there and this one definitely won’t be the last, unless of course you want it to be. Start cultivating an abundance mindset, instead of a scarcity mindset, move forward by pricing your deals to make money and sell quickly.

6. Believing that you know everything: nobody likes to know everything… do you? This is a terrible trap many investors fall into 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 as well today, not only is the market changing, but also the rules and laws that govern real estate.

8. Real estate 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 decreased for those who have learned the basics of real estate investing, perhaps there is not so much to learn, rest assured, you will never stop learning and there will always be surprises in store for the know-it-all.

9. Instant Gratification: Remember that there is no free lunch and it is definitely not an easy way to get rich. It takes time, effort and hard work. it just won’t happen. Unfortunately, far from many people from all walks of life, and sadly those who should know better, everyone wants the “instant fix”, the “silver bullet”, “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 started to follow these principles, then some successes seek to take shortcuts that invariably cause them difficulties, you often hear these people moan why me… If you really want to be financially free and rich, treat your investment like a business and make sure it generates cash flow.

11. These four great psychological pitfalls affect potentially successful investors, to overcome them you need to modify your behavior starting with your way of thinking.

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 make them come true. What you believe will be

2. Prepare to go beyond your current circumstances.

3. Foster the ability to believe in yourself

4. Set and achieve goals

5. Learn to try

6. Take responsibility for all your actions, stop blaming others when things go wrong or don’t go as planned

7. The will to do whatever it takes

8. Buy properties as a business and do not tolerate losses

9. Buy a property correctly and never overpay

10. An aversion to debt, borrow only what you can comfortably repay and still make a profit

11. Manage 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, no, it is not the amount of money. You could give a poor person a million dollars and after a few months they would be poor again, because they have not developed the previous fourteen points. Being rich has to do with you, your thoughts, your beliefs, your attitudes towards wealth, the money of riches, and yourself. Your mind is the secret for you to be rich or poor.