5 Ways You May Need to Change Your Real Estate Mindset

by | BiggerPockets.com

When I first started thinking about becoming a real estate investor, I knew I would have to learn many new things.  Over the years as I learned, practiced and became successful something unexpected happened – I noticed my mindset was changing.  I began to think about and see the world in ways I had not before.

My background was typical I think.  I went to school.  I went to college, got advanced degrees.  I rose to the top of my profession in local government.  I thought I had learned and knew a lot.  Real estate investing however opened my eyes to how much I did not know and had not learned in all that time.

Here are five mindset changes:

  1. Risk is bad / Risk is good – Having gone to school and worked for the government for most of my life before I got into real estate, I was taught that risk was bad.  This was not explicitly taught; it was rather subtle over the years.  One learns in school not to stand out, just follow the rules and pass the test.  In government, most bureaucrats are very adverse to risk. With real estate investing there is always risk.  It is how we make a profit.  So I had to learn that taking risks (calculated ones) was good.  Risk taking can make you successful.
  2. Change is bad / Change is good – Again schools and government do not like change.  I remember always asking why things were done a certain way, especially if it seemed like there was a better way.  The answer was “It has always been done this way” or “If it isn’t broke don’t fix it.”  I could never stand it when my why questions were ignored or passed over.  Perhaps that is why real estate was so appealing, as I could ask why, seek change and implement it.  Finding new and creative ways to do things often leads to success.
  3. Wealth is bad / Wealth is good – The “wealth is bad” attitude seems a bit pervasive today.  I had it for a while.  I was taught in school that wealth was bad, again not explicitly but it was always in the background.  In fact, several of my college professors were open Marxists.  They never understood that the wealth I build today rehabilitates my neighborhood and city, employs many people and allows me to expand my business and give back more.
  4. Businesses exploit / Businesses offer a service – A business will be wiped out if they offer a product or service poorly or one that no one wants.  For a business to survive it has to offer something that people want.  For a business to thrive, it has to offer a lot of people something they really want.  From the above you can imagine that I held the view that any business or business person making a profit was just ripping us off.  Of course I got those views from folks who never had to make a profit, face market competition or make a payroll.  Looking back, I wonder, what did they really know?
  5. Entrepreneurs are weird / Entrepreneurs are cool – In my early dealings with entrepreneurs I just did not understand them and though they were a little off.  Where do they come up with all of these ideas?  Can’t they see that they are just causing the rest of us problems?  Today I know better.  I like to hang around entrepreneurs.  Their ideas and actions are invigorating.  I try to surround myself with entrepreneurs as much as possible.

So there you have it, five mindset changes that I went through that I think have made me a better and more successful real estate investor.  These changes did not come overnight, rather they developed over time as I met and interacted with new people, real estate investors and others.  Don’t have these mindsets?  Don’t worry, you can develop them.   Seek out successful people you want emulate.  Join your local REIA, but most of all get started investing.  It will truly open your eyes!

What mindsets have you had to change or develop as you became a more experienced investor?  Share with me in the comments section.
Photo: striatic

About Author

Kevin Perk

Kevin Perk is co-founder of Kevron Properties, LLC with his wife Terron and has been involved in real estate investing for 10 years. Kevin invests in and manages rental properties in Memphis, TN and is a past president and vice-president of the local REIA group, the Memphis Investors Group.


  1. Glenn Schworm

    Hey Kevin, I enjoyed your article. I think I was born an entrepreneur so I never really had to change my mindset. I applaud you for doing so man. Most people don’t have the stomach for that kind of radical change. Good for you! Have an awesome week.

  2. You knocked this one out of the park. A fundamental thing all of us must overcome are the psychological blinders received through education, work, and everything around us.

    I’ll admit, I watch “Shark Tank”. I have slowly observed how the sharks’ state of mind is what has empowered them to become rich. I’m not necessarily out to be a billionaire, but if I stuck with the thinking imbued by my HR department and stayed the course with my 401k fund, I would retire and then seek a position at Walmart!

    And from what I’ve read, psychological barriers are the hardest things to overcome, because you have to outgrew an entangled web of beliefs, assumptions, and beliefs. I don’t know anyone that starts from the get-go in real estate, and many of those I meet here at BP show the ability to overcome mainstream financial beliefs. It’s invigorating to read it here.

    • It’s great to see I haven’t been “weird” all my life! Risk , change , and entrepreneur mindset is what sparks my creativity! The wealth part is what I’m looking forward to and will love to share it with others. Great article!

    • Kevin Perk

      Thanks Greg, I appreciate the kind words.

      Wise words about the psychological barriers. We all have mindsets that have been shaped by our life experiences and I think it takes a shift in experiences to facilitate a change in mindset. It is just too easy to do the same old thing over and over again.


  3. Good article with FACTS. The one biggie that is necessary COURAGE. One must have courage in order to pull the trigger on the rest. The hardest part is the first step. Outside the box thinking has always been outside the box. Most people like inside the box. Comfortable in their.

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here