I asked a friend of mine who is a relatively new investor what did he think the biggest piece of advice that he wished he had starting out. He told me it was the Investor Mindset. Sounds simple enough, right? I want to be an investor and I am willing to work hard. That is the best way to end up quitting. It is an extremely crucial component to the successful investor that you have your head right. This is not 2016 T-Ball where everyone gets a trophy. This business is 1988 tackle football where you could break both arms and suffer a concussion but if you aren’t an to the team asset you get a pat on the back and a “better luck next year.”
The investor mindset is really the entrepreneurial mindset. Some folks are born entrepreneurs and some have to learn it. I think for those of us who are born this way, it's a good damn thing because we really do not fit well into the box of a structured job.
As a kid I was the bossy girl who had no idea that I was way shorter and possibly younger than the other kids that I used to persuade into participating in my entrepreneurial endeavors. I knew that my acting, singing, dancing, and well, anything resembling a performing art left much to be desired. That, my friends, did not stop me from putting together an original play in my back yard using the patio as a stage and pool chairs as seating. My four-year-old brother and a flashlight provided lighting. An orange and brown cassette player with a microphone was sound. I held tryouts and we practiced for a few days before handwriting flyers and sending my super adorable six-year-old sister out to distribute. Yep… Played on the cuteness. I knew my hair was frizzy, my nose had grown faster than my face, and front teeth were either missing or had grown in HUGE.
What does this have to do with real estate? My first thing that I really want you to recognize for getting in the mindset to move forward and make moola is this…
1. Know your strengths and weaknesses. Hubris is not an asset. No one likes a know-it-all… for real. My intrinsic ability to know my strengths and delegate out the things for which am weak became over-powered through adolescence and early adulthood by insecurities and an altered view of myself. By the time I began as an investor I could not be told anything because I thought not knowing meant I would be seen as weaker or less intelligent or something… I am glad that I grew up and regained the confidence and self-empowerment to know that being awesome doesn’t mean I have to be perfect. Which brings me to…
2. Don’t be afraid… What I was not afraid of in my teen and early adult years was to put myself out there. I was not afraid of rejection of an offer or the offer sounding ridiculous to the seller.
You have to remove the fear from your thought process. I have seen excellent investors who at first were nearly crippled with the fear of making a bad offer or being seen as a scam artist. Fear is the worst thing one can possess in business. Not making the play out of fear is worse than making it and “failing.” In fact I encourage you to make that crazy offer, talk to strangers about private money, whatever it takes. Remember this is a journey like everything else in life; there is no failure just successes in areas unintended. Speaking of…
3. Failure is not a bad thing… For this section I am going to take the focus off of me (narcissism toned down…JK…kinda) because I have the most perfect example for this I have used with my students repeatedly to illustrate many things that I touch on here.
A good friend of mine, John, happens to be a friggin badass. It wasn’t enough to be leaving the Army and joining the Air Force, teaching kick boxing, investing in the stock market, holding down a full time job in finance at a top financial institution, and being a pretty awesome blogger about how to be as badass as he. He wanted to be a real estate investor too. Of course he did…
I sent him several hundred pages of material and said “read this, we’ll talk after.”
He was about half way through the material when he text me, “A guy just walked in my office who has been given 30 days to sell his house by a judge. He owes $166,000 and the stuff in his neighborhood is going for $300,000.” (It was really comping out at $326,000)
Of course, I say, “Get it under contract. I’ll drive up tomorrow.”
Knowing that he had no experience and had not even finished the material, this guy pitched the shit out of these folks. In the end they did not take John’s offer for $166,000 but they were grateful to have the offer.
When I've told this story, people are usually disappointed for poor John. He failed at his first attempt at real estate.
This was not a failure. He won at many things. 1. An opportunity to practice making an offer; 2. Providing a solution to a person who was clearly distressed; 3. Building rapport that could lead to future deals. 4. Impressing me (super important).
Believe me when I tell you that I have had my fair share of what most would consider a failure but from each one I gained the knowledge and experience to grow and improve both professionally and personally.
As you can see, having an investor mindset is a topic for which I am passionate. The biggest reason people do not make it in whatever entrepreneurial endeavor entices them is not having their head in the right spot. You have to live the life.
I have been told that I tend to be a little lengthy and should stay in the one page range. That said, I shall give you this, the first half. The second half shall be released on Thursday.
I am not going to just leave you hanging on the badass blog I mentioned above. Click here for the link.
Happy Investing My Real Estate Junkies!!
I was born an entrepreneur. I am pretty certain that I was peddling passies in the hospital when the nurses left the room.All of the other kids in the neighborhood were riding bikes and playing with dolls I was selling jewelry out of a catalogue and creating a back yard consignment shop. At 21 I became a real estate investor and fell in love. This was/is/ and always will be my passion. I have been madly in love with flipping, holding, and writing offers on real estate that seem crazy for 18 years. Ladies and gents I am willing to share the love of my life with you. Maybe its polyamory maybe its jut because I can’t shut up about it. Either way I will be sharing every mistake I ever made and the lesson that came from it. I love questions. Please ask away!!!