7 Ways To Becoming A Rockstar Investor

In investing, how can you separate yourself from the pack? How can you rocket into the top 1%? Here’re seven tips from the most highly successful in the industry about how to look like a rockstar:

1) Leave your emotions at the front door.

Oftentimes, we can let our emotions get in the way of making decisions. Yes, you may run into a property that you fall in love with. It’s the right location and an all-brick house, but the purchase price doesn’t work for your numbers. No matter what, overpaying for a property is not an option. Like Robert Kiyosaki says, “Make your money on the buy, not the sell.” So buy right.

2) If you don’t understand it, don’t invest in it.

As Peter Lynch states, "Invest in what you know." If you specialize in single-family homes, you’re going to need to do research before you invest in a multifamily property. Don’t make the mistake of thinking that your previous knowledge will automatically apply to investments you don’t have experience in. There are many different specifics involved in different types of properties.

3) Heed advice from others.

Listen to other experienced investors around you. Most likely, they have been through the whole market, from top to bottom. Learning from their years of experience can give you knowledge and insight, which you wouldn’t be able to learn elsewhere.

4) Know your numbers and stick to them.

Oftentimes, I see my fellow colleagues adjusting numbers to make deals work. Do not do this! Let’s say you are looking to achieve a certain cap rate, and you adjust the rent from $1000 to $1100. If you do that, you may just increase your vacancy rate on that property. In other words, it might be harder to rent that property now.

5) Keep it in the business.

When you are earning cash flow on your investments, it is best to either reinvest it or keep it in reserve for maintenance. You can go out and buy that Tesla later.

6) Partner with others

This is by far my favorite thing to do! There are so many opportunities in this industry, and there’s room for everyone. So either leverage wholesalers to find you deals, or do a joint venture on a fix & flip. I’d rather make 50% of a profit than no profit at all.

7) Take Action

You just have to be a doer. Don’t sit on the sidelines. Get out there and be great! Yes, mistakes will be made, but they are really only feedback about what didn’t work. Remember what Mark Cuban says, “It doesn’t matter how many times you failed. You only have to be right once.”