The 6 Must Have Investor Virtues
WRITTEN BY WADE GRAHAM | 28 MARCH 2011
By no means is Investment Real Estate the quick and easy road to financial freedom. In fact, truth be told it might be one the most difficult. I don't think it is as purly an investment but I think of it more as a business unlike stocks, bonds and mutual funds. As an operator of an Investment Real Estate Business I get asked at least once a week "What it takes to be successful in this business?" by want to be investors. Here are the virtues that you MUST HAVE:
[list type=decimal]
[*]Determination
[*]Patience
[*]Action - The Ability to Pull The Trigger
A Love For Numbers
Vision - Preferably Long Term
Optimism
[/list type=decimal]
Determination - This business can be a grind. In every type of market their are challenges. For example, in a hot market it is tough to find good properties but investors are plentiful but in a soft market properties are easy to find but investors are too nervous to get involved. It really is the great oxy moron of investing as you would prefer it to be exactly the opposite. My point is that this business will challenge you at every step of the way! Nowhere a long the lines is this going to be easy. If you don't have the determination to push through you might as well not get started and save yourself the disappointment.
Patience - We have all heard the phrase "Patience is a virtue" and it certainly rings true for real estate. Whenever I am negotiating in the back of my head I am always thinking from an attitude of abundance "There is always another deal." This attitude lets me walk away from mediocre deals and wait for another good investment to come my way. Patience will let you survive making poor investments and that is why I think it is one of the Investor Core Virtues.
Action: The Ability To Pull The Trigger - Patience is a core virtue but the ability to recognize a great investment and pull the trigger is where most investors get stuck. Let's face it writing big cheques still makes my palms sweat. It takes some kahonas to pull the trigger and most can't do it so they use Patience as an excuse when really it is fear. In this game you have to know the difference and take action when necessary.
A Love For Numbers: If you are not at least somewhat intrigued by numbers then this is going to be a tough way to make a living. Let's face it this is all about the numbers. If you are overly emotional and ignore what the numbers are telling you then you will not be long in this business. If you don't like crunching numbers daily then you will not enjoy one of the keys to success. Are you making money on this investment or not?
Long Term Vision - My last blog was about creating a powerful "Why". A Why that almost brings you to tears will help you get through the day to day minutia. Similarly you need to have a long term vision. You need to know what it is that you want out of this business. If you don't have this you will be making reactionary decisions instead of proactive ones and this is a quick way to disaster. I encourage all investors to write a vivid description of their lives 5 years from today. What does your life look, smell and taste like. Who is with you? Who isn't with you? Close your eyes and tell me about your life 5 years from now!
Optimism - I am a glass half full guy. Always have been and always will be. I prefer to think about the good things that could happen as opposed to dwelling on all of the negative fear. This has helped me get through some sticky situations. This business of investment real estate will do everything it can to drag you down. Tenants that don't pay rent, roofs that leak, demanding investors, and markets that you have no control over. If you are not optimistic then you are doomed.
For you folks new to the investment real estate business I hope this keeps it real for you. I see investors daily with diamonds in their eyes and I wish them well but unless I see these virtues in them as well then those diamonds tend to dull over time. But for those with a passion for real estate and these virtues it is really fun to watch! They have found their calling and quickly become a power house in the industry!
Good luck out there!
WRITTEN BY WADE GRAHAM | 28 MARCH 2011
By no means is Investment Real Estate the quick and easy road to financial freedom. In fact, truth be told it might be one the most difficult. I don't think it is as purly an investment but I think of it more as a business unlike stocks, bonds and mutual funds. As an operator of an Investment Real Estate Business I get asked at least once a week "What it takes to be successful in this business?" by want to be investors. Here are the virtues that you MUST HAVE:
[list type=decimal]
[*]Determination
[*]Patience
[*]Action - The Ability to Pull The Trigger
A Love For Numbers
Vision - Preferably Long Term
Optimism
[/list type=decimal]
Determination - This business can be a grind. In every type of market their are challenges. For example, in a hot market it is tough to find good properties but investors are plentiful but in a soft market properties are easy to find but investors are too nervous to get involved. It really is the great oxy moron of investing as you would prefer it to be exactly the opposite. My point is that this business will challenge you at every step of the way! Nowhere a long the lines is this going to be easy. If you don't have the determination to push through you might as well not get started and save yourself the disappointment.
Patience - We have all heard the phrase "Patience is a virtue" and it certainly rings true for real estate. Whenever I am negotiating in the back of my head I am always thinking from an attitude of abundance "There is always another deal." This attitude lets me walk away from mediocre deals and wait for another good investment to come my way. Patience will let you survive making poor investments and that is why I think it is one of the Investor Core Virtues.
Action: The Ability To Pull The Trigger - Patience is a core virtue but the ability to recognize a great investment and pull the trigger is where most investors get stuck. Let's face it writing big cheques still makes my palms sweat. It takes some kahonas to pull the trigger and most can't do it so they use Patience as an excuse when really it is fear. In this game you have to know the difference and take action when necessary.
A Love For Numbers: If you are not at least somewhat intrigued by numbers then this is going to be a tough way to make a living. Let's face it this is all about the numbers. If you are overly emotional and ignore what the numbers are telling you then you will not be long in this business. If you don't like crunching numbers daily then you will not enjoy one of the keys to success. Are you making money on this investment or not?
Long Term Vision - My last blog was about creating a powerful "Why". A Why that almost brings you to tears will help you get through the day to day minutia. Similarly you need to have a long term vision. You need to know what it is that you want out of this business. If you don't have this you will be making reactionary decisions instead of proactive ones and this is a quick way to disaster. I encourage all investors to write a vivid description of their lives 5 years from today. What does your life look, smell and taste like. Who is with you? Who isn't with you? Close your eyes and tell me about your life 5 years from now!
Optimism - I am a glass half full guy. Always have been and always will be. I prefer to think about the good things that could happen as opposed to dwelling on all of the negative fear. This has helped me get through some sticky situations. This business of investment real estate will do everything it can to drag you down. Tenants that don't pay rent, roofs that leak, demanding investors, and markets that you have no control over. If you are not optimistic then you are doomed.
For you folks new to the investment real estate business I hope this keeps it real for you. I see investors daily with diamonds in their eyes and I wish them well but unless I see these virtues in them as well then those diamonds tend to dull over time. But for those with a passion for real estate and these virtues it is really fun to watch! They have found their calling and quickly become a power house in the industry!
Good luck out there!