{"id":120106,"date":"2020-10-12T05:00:15","date_gmt":"2020-10-12T11:00:15","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=120106"},"modified":"2021-03-16T14:57:18","modified_gmt":"2021-03-16T20:57:18","slug":"start-thinking-like-big-time-real-estate-investor","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/start-thinking-like-big-time-real-estate-investor","title":{"rendered":"How to Start Thinking Like a Big-Time Real Estate Investor"},"content":{"rendered":"<p>In the video below, investor Thach Nguyen reveals how he has successfully made a career of investing in real estate. He&#8217;s doing so well, in fact, we&#8217;re standing in front of a deal that he anticipates will positively cash flow around $240,000 <em>a year\u2014<\/em>and that&#8217;s just one property he purchased from one single owner.<\/p>\n<p>So, what&#8217;s the key to generating profits like Thach? Having the correct mindset.<\/p>\n<h2>The Mindset of a Big-Time Real Estate Investor<\/h2>\n<p>&#8220;If you were to simplify it\u2014give me advice for any investor right now\u2014tell me how do you look at deals differently?&#8221; I asked Thach. &#8220;How do you get focused on only one type of deal, and how do you broaden your mind to start looking at every possibility?&#8221;<\/p>\n<p>Below he gives us a few pointers.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/37xcTzK09e8\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/develop-winning-mindset\" target=\"_blank\" rel=\"noopener noreferrer\">3 Ways to Develop a Winning Mindset<\/a><\/em><\/p>\n<blockquote><p>When I was starting, I started as a real estate agent. As a real estate agent, when you look down the road, the farthest you can think is listing this property. You can ever think beyond that.<\/p>\n<p>If you&#8217;re a <a href=\"https:\/\/www.biggerpockets.com\/blog\/ultimate-beginners-guide-real-estate-wholesaling\" target=\"_blank\" rel=\"noopener noreferrer\">wholesaler<\/a>, what would you think? The farthest you can think is you can wholesale or maybe you can flip it later. A flipper would think about <a href=\"\/renewsblog\/2014\/01\/07\/flipping-houses\/\" target=\"_blank\" rel=\"noopener noreferrer\">flipping<\/a> it. A builder would think about tearing [the existing property] down.<\/p>\n<p>So, my tip for you guys is you have to start with 10, 20 years out and ask yourself what your lifestyle looks like.<\/p>\n<p>How much money do you have coming in every single month? How many doors do you need?<\/p>\n<p>From there, if you&#8217;re thinking long-term, when you think passive income, you find deals that match passive income. If you think wholesale, you find deals to match wholesale. You think flip, you find a house that might flip. You can never find a flip that gives you these types of return, because your mindset is thinking flip. Your mindset is thinking wholesale.<\/p>\n<p>So, the tip I will tell people is if you want to find a better margin deal or deal like this, you&#8217;ve got to think like a long-term passive income investor.<\/p>\n<p>Now, when I do this, I start my day thinking:<\/p>\n<ul>\n<li>Can this property meet a <a href=\"\/renewsblog\/brrrr-strategy-real-estate-investing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>BRRRR<\/strong><\/a>?<\/li>\n<li>If it doesn&#8217;t meet a BRRRR, can I <strong>build<\/strong> on it?<\/li>\n<li>If it isn&#8217;t something to build on, can it meet a <strong>flip<\/strong>?<\/li>\n<li>If it doesn&#8217;t meet a flip, can I <strong>assign<\/strong> it?<\/li>\n<li>If I can&#8217;t do that, can I just <strong>list<\/strong> it for the owner?<\/li>\n<\/ul>\n<p>Back then, I started from the bottom up. And so what happened, is if you started up, you just stop wherever your mind can extend. So, the key for me now is that I stand from\u2014every day I stand from\u2014I&#8217;m an investor who wants to create passive income.<\/p>\n<p>So, when I go out there and door knock and find property, the Law of Attraction will give me what I think about. That&#8217;s what I find all the time.<\/p><\/blockquote>\n<p>This is something I struggled with for many, many years. To sum up what Thach said, I only thought six months out all the time.<\/p>\n<p>&#8220;I need to flip houses,&#8221; and that&#8217;s all I found. I found a ton of flips, and all I would do is flip. When I was a wholesaler, all I found was wholesale. So, it&#8217;s niching yourself.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-115893\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/Depositphotos_50812187_original.jpg\" alt=\"Small house exterior. View of entrance porch with stairs and walkway\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/Depositphotos_50812187_original.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/Depositphotos_50812187_original-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/8-ways-rentals-can-help-your-retirement\" target=\"_blank\" rel=\"noopener noreferrer\">8 Ways to Use Rental Properties to Create Retirement Income<\/a><\/em><\/p>\n<p>Now, I do believe that at some point you&#8217;ve got to niche yourself, but Thach chose to do so at the top and then work back down.<\/p>\n<p>&#8220;That&#8217;s right,&#8221; he said. &#8220;That&#8217;s the key.&#8221;<\/p>\n<p>I think it&#8217;s a great point. So, I hope you guys get that and think long-term. I thought six months out forever; only the last few years of my life I&#8217;m actually thinking 10 years out. And it&#8217;s really challenging for me\u2014still. But being able to do that, you start seeing so many other exit strategies.<\/p>\n<p>Thach added:<\/p>\n<blockquote><p>Here&#8217;s the thing though, just because you think long-term doesn&#8217;t mean you&#8217;re going to stop wholesaling. It doesn&#8217;t mean you&#8217;re going to stop flipping.<\/p>\n<p>So, when a deal comes to me, I can quickly analyze it and go, &#8220;BRRRR or new construction or flip.&#8221;<\/p>\n<p>When working backward, I&#8217;m not telling people to stop flipping houses. I&#8217;m telling you when you stand over here, you&#8217;re clear on that you&#8217;re flipping this house for a specific reason\u2014getting max for the flip.<\/p>\n<p>So, you don&#8217;t <em>stop<\/em> doing it. You just <em>have an end game<\/em> in why you&#8217;re doing it.<\/p><\/blockquote>\n<p><a href=\"https:\/\/www.biggerpockets.com\/real-estate-companies\/find-real-estate-agent-directory?utm_source=blog&amp;utm_campaign=agent_directory\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-114269\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/7.jpg\" alt=\"ad-agent-directory\" width=\"706\" height=\"125\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/7.jpg 706w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/7-300x53.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/08\/7-702x125.jpg 702w\" sizes=\"auto, (max-width: 706px) 100vw, 706px\" \/><\/a><\/p>\n<p>Do you agree or disagree with this advice? If your strategy differs, do you think it&#8217;s superior to this one? Why?<\/p>\n<p><strong>Share your thoughts in the comment section below.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Learn the key to generating big profits\u2014enough passive income to retire from your 9-5 job. Hint: It starts with having the correct mindset.<\/p>\n","protected":false},"author":11405,"featured_media":119862,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-120106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/120106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/11405"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=120106"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/120106\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/119862"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=120106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=120106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=120106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}