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Posted almost 10 years ago

Bring Your Rational Brain to Income Property Investments

One thing that separates the winners from the losers in life is the ability to make rational decisions, and that’s not always the easiest thing to do, according to Jason Hartman. We’re all human. At least those reading this article probably are. Part of being human, unfortunately, is a tendency to get emotional, upset, or just downright stupid when making up your mind what to do. We’re here to urge you to fight the tendency! It can seriously mess up your investing life.

Jason’s 19th Commandment of successful investing says, “Thou shalt make rational decisions.” A great example of failing to heed this advice can be seen any time the housing market takes a dip. Newbie, and even seasoned investors, see a wondrous buying opportunity, which it is. The trouble is when you begin buying properties indiscriminately, like they’re packs of bubblegum cards, and you can’t wait to rip them open and see if you got something good.

Here’s the problem. Just because a property is cheap doesn’t automatically make it a profitable addition to your portfolio. Let’s linger on that idea for emphasis. Cheap and good aren’t necessarily the same thing. They might be, but don’t be the sap who makes the assumption that is always the case. You still need to think through every single deal that crosses your path.

Does it make financial sense the moment you sign on the dotted line? If not, why the heck are you even wasting your time thinking about it? Do you have an investment death wish? Do you want to lose money and become a frustrated investor? Don’t get greedy. Don’t run out and buy a bunch of junk properties just because they’re on sale.

As a native of southern California, Jason likes to remind his clients not to take their California brains to other areas of the country. Compared to west coast prices, almost anything looks cheap, but that way of thinking is a trap! Our greatest motivators as human beings are to gain pleasure and avoid pain. In other words, fear and greed.

Don’t let fear and greed into your decision-making process because they will screw you into a knot so tight you’ll never get out. (Image: Flickr | karola riegler photography)

The JasonHartman.com Team
"The Complete Solution for Income Property Investors"


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