One of the greatest joys for me is to watch others succeed as real estate investors. I am always amazed how some investors jump in and can create profits from almost any deal, while others seem to struggle with each step they take.
Over the course of my investing career I have tried hard to identify those characteristics which I believe exemplify successful real estate investors… before they even get started. And, while this have been no easy task, I thought I would share some of the most common characteristics of successful real estate investors that I have discovered.
1. They are not victims. Every successful investor I have ever known does not allow themselves to be a victim to their circumstances. They accept responsibility for where they are in their life, their decisions and the results they are creating.
2. They come from professional backgrounds. Those individuals who have been in the professional business world have an easier time succeeding in real estate. I believe this is true because many business professionals have learned to work in teams, have been required to be self-starters, are used to performance based compensation, and for more then a few, they have learned how to manage things. All of these skills translate directly to building a real estate investing business. Does this mean everyone in this group succeeds? No!
3. They are extremely motivated. I have found that those investors who have not had the benefit of working in a professional environment, know if they stay where they are, the prosperity they are seeking will not be forthcoming. In fact, they most likely will be stuck in a dead end job with no way out — and what a tremendous motivator for these individuals that is . . .
4. They are not afraid of hard work. Successful investors are motivated by more then just money. This is an extension of number 3 above… yet I believe this is the number one issue which separates the men from the boys. These successful investors know the money will come, and it has the potential to come in big chunks, often with little effort, especially when compared to the number of hours required to generate that “big chunk” in the working world. But, to get that money moving towards them, they have to work at it. They need to fix problems. In essence, they must execute item number 1.
5. They are constantly learning. The most successful investors get rid of their egos and allow themselves to be taught. Like a sponge on a mission, those who are willing to learn as much as they can, seek out the advice of experts and then actually take the advice and use it, are hands down the ones that succeed almost with ease, and are fun to coach.
Now for a real life example…
I get a lot of new investors approach me after they have spent thousands of dollars on other mentoring and guru programs. I am always leery of these investors because I am concerned that they have been taught things that just don’t work, and that they can’t be untrained.
In October of last year I was approached by a new investor who fit everyone of the charateristics mentioned. During my discussions with her, I could tell that this investor was one focused and motivated person. Her level of clarity and enthusiasm could not be missed, and everything about her background shouted success!
As I watched her in action I was impressed how she was willing to take those actions others are not willing to take. Actions like developing her farm area, or getting out of her car — yes actually getting out of her car to walk the neighborhood and get a feel for why this would make a great place to get started. Then she started mining the MLS for properties in that area — of course she found several and made offers. This lady is all action; just point her in the right direction, let her know what to do, and then stand back.
Within four weeks of getting started she had offers in. Within 6 weeks she had her first offer accepted. Within the first 3 months she had the property purchased and on the market. Finally, within the next 2 months she had the deal sold, made a great pofit and was moving on to her next deal.
Why was she able to spring into action so quickly? Simple… she displayed those 5 characteristics above and was not afraid to take action!
What does this mean to each of you reading this post?
Here is the take away…
Ask yourself: How do I measure up to the characteristics above? Do I display the characteristics of a successful investor? If not, what changes do I need to make to achieve my success?
Image: Kevin TeagueFive Characteristics Of Successful Real Estate Investors by Peter Giardini