Are investors made or born?
Sterling WhitePro Member
Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votesAre investors made or born?
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes@Sterling White great post and subject:
for me I think as it relates to BP and what most people are interested in you must first define what investor or investing is.
1. For instance wholesaling is NOT investing its sales and marketing and I firmly believe certain people have an innate ability that they were born with or acquired very young.. the gift of gab being one.. out going personality etc.. those folks generally are going to be far more successful at wholesaling than the person is a one that you would describe as a Wall flower .. with no people skills sales skills phone skills etc..
2. For what I consider an investor IE one that buys investment grade real estate with after tax money they have earned usually in another profession.. this is more akin to learned knowledge you don't need a magnanimous personality to buy at auction or from RE brokers you work with.. Lord I know many of those. LOL..
So in some cases I do believe its some innate ability.
@Thomas S. I had never thought of the Sociopath in the light you expressed.. but if I look back at a past business partner that I have come to the conclusion is a TEXT book Sociopath.. he absolutely could care less what people think of him. and will just do what he wants no matter the outcome for others. To the point of being socially retarded in my mind.
One other business partner that I still do business with and have for the last 25 years is the exact opposite.. so giving and concerned about his employees etc.. I have seen him do things that just were so great that I hold him in very high esteem and proud to be his friend and business associate..
And of course there are all sorts in the middle... But yes the Sociopath can be very successful with making money my X partner sure is.. as he worships money at the behest of all else.. So in a lot of way's when dealing with him you can read him pretty easy since he will always be trying to get the best of every situation.. it can lead him to make some stupid moves as well. ( but as a true sociopath) its never his fault ...:)
25 Replies
- Realtor · Keystone Heights, FL · Member since 2015 · 340 posts · 118 votes10y
In my opinion, being an investor is not a matter of having or not having a particular skill. It's about having or not having the right attitude, risk tolerance, etc. Now, that's not to say that being a better investor can't be achieved by acquiring more skills and broadening your knowledge base. You've got to. But there are some untangibles that play into whether a person will or will not ever become an investor. Born with it? Hmmm...maybe. But still something a person can acquire along life's road if they weren't. Just my $.02
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes10y
Makes perfect sense @Walter Key and I agree with your thought process. On the contrary I do believe that some of the necessary skills such as the entrepreneurial spirit is something that really helps with thriving as an investor. Being entrepreneurial is a trait I believe you either have or don't in my opinion.
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes10y
Great points @Thomas S. and I completely agree. What do you think about the situation when someone takes the same path as a colleague and they both have the same work ethic, determination, luck etc. and one ends up with better results.
Is there a possibly the colleague with better results was born with an innate skill that set them apart from the other?
- Investor · Big Spring, TX · Member since 2016 · 140 posts · 59 votes10y
My wife and I were talking about that the other night. She says that it is intuition. Just born with the abilities to know how to do things. I think it is a learned trait. I didn't know anything about investing until my late 20's and have been learning ever since. I believe you get good at something by repitition. Just like at your day job.
- Member since 2016 · 13k+ posts · 12k+ votes10y
Originally posted by @Sterling White:
Is there a possibly the colleague with better results was born with an innate skill that set them apart from the other?
All things being equal the results can not be anything but the same. But in life all things are never equal. Real estate investment is knowing, understanding and putting numbers into play plus luck.
There is however one factor that does not come down to skill. It is a far more important ability that can not be learned. The ability to put your success ahead of all else. It involves making decisions that others may not make. Some may view it as a cold hearted personality, I consider it to be an innate skill.
Combine that with knowledge, drive, ambition and luck and you remove all limits. I consider it one of the most important characteristics of truly successful individuals.
- Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes10y
I'm sure you've heard about a sculpture chipping away on a stone to release what's already there and not to create something new.
So, I think that we were all born with the abilities, but that our growing up and society and peers shape us in such a way that we may not have nurtured certain abilities and thus they have atrophied.
But then there are sometimes life-changing situations, that push us into a corner and we are forced to flex those abilities, like a muscle, in order to survive. Our survival instinct is so strong, that it will push aside a lot of our learned behaviors and characteristics and allow us to dig deep and find things inside of us, that we never knew we had. And, then, if we continue to 'work that muscle' we can do more and more of this 'new' activity or whatever you want to call it.
How often have we heard of someone having had a 'disaster' happen to them and 2 years later, they say that it was the best thing that could have happened? The person who lost their job and who started their own business. The single mother, who lost her husband to some tragedy and now has to struggle to bring up 2 children and who becomes more than she would have been with her husband.
So, I think we have it in us, but that it's up to us whether we are willing and able to let down the walls, that keep us from utilizing more of ourselves. Many people are simply finding comfort in those walls and others may need a push and still others hear about something and tear those walls down, running full force the whole way......
- Buy & Hold Owner · Redlands, CA · Member since 2015 · 5k+ posts · 2k+ votes10y
Each form of REI needs more of some skills and less of others, but
- rental operations (buy&hold) needs people skills
- all REI needs ability to do research on your own or to find the proper reference material is essential
- some degree of business accumin is required (invoices, POs, simple accounting)
You can learn finance and legal stuff on the fly as you begin to need need them.
Investments are not a natural endeavor so IMO, an investor is never born aka Calif's Eureka but an acquired set of skills from exercise.
- Member since 2016 · 13k+ posts · 12k+ votes10y
Studies have showed that many of the most successful business people in the world are sociopaths.
They are able to make business decisions without being encumbered by the frailty of human emotions. This gives them a distinct advantage in business whether it be real estate or any other venture.
This could be the only difference between two individuals in the exact same circumstances where one would be more successful.
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes10y
Thanks for the comment @Brian Turnbough interesting you mention intuition. That is a interesting human skill itself. Are you saying you believe this is something that can be developed?
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes10y
Originally posted by @Michaela G.:
I'm sure you've heard about a sculpture chipping away on a stone to release what's already there and not to create something new.
So, I think that we were all born with the abilities, but that our growing up and society and peers shape us in such a way that we may not have nurtured certain abilities and thus they have atrophied.
But then there are sometimes life-changing situations, that push us into a corner and we are forced to flex those abilities, like a muscle, in order to survive. Our survival instinct is so strong, that it will push aside a lot of our learned behaviors and characteristics and allow us to dig deep and find things inside of us, that we never knew we had. And, then, if we continue to 'work that muscle' we can do more and more of this 'new' activity or whatever you want to call it.
How often have we heard of someone having had a 'disaster' happen to them and 2 years later, they say that it was the best thing that could have happened? The person who lost their job and who started their own business. The single mother, who lost her husband to some tragedy and now has to struggle to bring up 2 children and who becomes more than she would have been with her husband.
So, I think we have it in us, but that it's up to us whether we are willing and able to let down the walls, that keep us from utilizing more of ourselves. Many people are simply finding comfort in those walls and others may need a push and still others hear about something and tear those walls down, running full force the whole way......
I totally agree with you Michaela. Interesting breakdown when you attach real life situations. Humans are more capable then we think we are.
- Investor · Big Spring, TX · Member since 2016 · 140 posts · 59 votes10y
Originally posted by @Sterling White:
Thanks for the comment @Brian Turnbough interesting you mention intuition. That is a interesting human skill itself. Are you saying you believe this is something that can be developed?
Yes, I think so. Pick any career choice. Does a pilot instinctively know how to fly an airplane? Does a plumber instinctively know how to route your pipes to flow properly? Does a mechanic know how to fix a car on day one? I believe we all have something in our brain (past memory) that we have been exposed to in our life that causes us to think we just know how to do what's needed. Whether its from watching tv, helping our aunt or uncle change the oil in their car, or reading it in a book, we have learned something from somewhere. I believe we get great at something through repitition.
- Investor · Everett, WA · Member since 2014 · 180 posts · 76 votes10y
Money was created, so investors that invest money are made.
However, everyone naturally invests in one way or another. Remember, in many parts of the world, it is impossible to invest money. When a baby crys, it is investing his or her's time and effort with the hopes of getting care and attention in return.
So I believe everyone "has it." It is a matter of who goes down the right paths to be able to connect that natural tendency to monetary returns.
- Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes10y
Financial Intelligence is gained from learning. Could be learned from your environment (family, friends, etc) or from taking the initiative to improve yourself. Unfortunately most people go through life with the work for money mindset and think that is the only way and some of these people might thrive as investors.
I know many people, like me, who spent the first 20+ years with no idea what I wanted to do with my life because I was only looking at the people around me as examples to help figure out what I wanted to be or do. These people all worked for money. I was not happy with that path.
Once I realized that its not about your savings but about your net worth my mind was blown.
Investing in assets is a learned technique that anyone can do. Working for money can make you rich, investing in assets can make you wealthy.
- Investor · BARRIE, Ontario · Member since 2014 · 52 posts · 15 votes10y
In regards to the original question, I think just from listening to the variety of ppl interviewed on the BP Podcasts, it proves that its possible to acquire "skillsets" from the use of partnerships. You can find those people who excel at what you lack. And TOGETHER you are one solid investor :) hah
- Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes10y
@Sterling White when you use the word born, it implies a genetic component. Genetics have an effect on intelligence and physical attributes. Genetics can give someone an advantage, but I don't believe that is the defining factor. Many examples prove otherwise. I think you are made through your life experiences. Look at siblings that share the same genetics. One could be homeless, one a school teacher, one a doctor and one could own their own company. Some families, all the kids are successful and others none are successful. It is all a matter of the influences and personal choices of each individual.
- 10yGino BarbaroPro MemberRental Property Investor · St Augustine, FL · Member since 2014 · 2k+ posts · 1k+ votes
Hi Sterling,
Difficult question. I am a first generation Italian whose parents arrived here with nothing. I know many immigrants who can barely read or write and have gone on to amass fortunes. I think it has a lot to do with your surroundings and who influences you. If mom and dad constantly criticize you, it may be difficult to prosper. Some rebel and want to show them, but most just get stuck in a rut.
Tony Robbins says it best that who you surround yourself with is extremely important. If you want to be the smartest guy in the room, then you will not get ahead. But if you surround yourself with smart hardworking great people, your chance of success multiplies.
I think investing can be learned. I have learned a great deal from my partners/mentors and from my parents.
These are just my observations, and I think anyone can become a great investor.
Gino
- Member since 2016 · 13k+ posts · 12k+ votes10y
Gino your point in regards to who you surround yourself with is extremely valid. In the case of investing surrounding your self with successful people that have money generally will give on a leg up in investing.
A young investor that continues to surround themselves with his beer drinking buddies that work 9 to 5 and have no ambition to grow are never going to be of any use. I advise young investors to distance themselves from their old social environment if those people have no financial advantage to them.
- Investor · Orange County, CA · Member since 2016 · 113 posts · 24 votes10y
@Gino Barbaro and @Thomas S., Very well said, and I completely agree with what both of you guys said 100%! They say you're the 'average' of the 5 people you surround yourself with the most. And with me being a new investor, I'm doing my best to surround myself with positive, successful, ambitious, like-minded investors who I can continiously learn from as well as give back to in whatever way possible.
- 10yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
@Sterling White great post and subject:
for me I think as it relates to BP and what most people are interested in you must first define what investor or investing is.
1. For instance wholesaling is NOT investing its sales and marketing and I firmly believe certain people have an innate ability that they were born with or acquired very young.. the gift of gab being one.. out going personality etc.. those folks generally are going to be far more successful at wholesaling than the person is a one that you would describe as a Wall flower .. with no people skills sales skills phone skills etc..
2. For what I consider an investor IE one that buys investment grade real estate with after tax money they have earned usually in another profession.. this is more akin to learned knowledge you don't need a magnanimous personality to buy at auction or from RE brokers you work with.. Lord I know many of those. LOL..
So in some cases I do believe its some innate ability.
@Thomas S. I had never thought of the Sociopath in the light you expressed.. but if I look back at a past business partner that I have come to the conclusion is a TEXT book Sociopath.. he absolutely could care less what people think of him. and will just do what he wants no matter the outcome for others. To the point of being socially retarded in my mind.
One other business partner that I still do business with and have for the last 25 years is the exact opposite.. so giving and concerned about his employees etc.. I have seen him do things that just were so great that I hold him in very high esteem and proud to be his friend and business associate..
And of course there are all sorts in the middle... But yes the Sociopath can be very successful with making money my X partner sure is.. as he worships money at the behest of all else.. So in a lot of way's when dealing with him you can read him pretty easy since he will always be trying to get the best of every situation.. it can lead him to make some stupid moves as well. ( but as a true sociopath) its never his fault ...:)
- Rental Property Investor · Indianapolis, IN · Member since 2014 · 554 posts · 153 votes10y
Thanks for your comment @Jay Hinrichs its always a pleasure in hearing your perspective. I completely agree on certain traits as you mentioned being innate. I myself have always been more of an extrovert and that is something I naturally had growing up versus developing it.
@Glenn Tracy that quote holds so true "you're the 'average' of the 5 people you surround yourself with the most." I wish you all the best in your venture!
- Investor · Century, FL · Member since 2015 · 950 posts · 603 votes10y
Originally posted by @Sterling White:
I would like to hear others input on this matter. Do you believe being an investor is a either you have it or don't have it skill?
Personally, I think it has something to do with seeing future gains, and in some respects suffering current pains,
I don't nessacarily think its purely to do with real estate investing. Think of starting a new business, technically it's an investment in your future as new businesses rarely make that handsome return you want on day 1.
So you set yourself up for something that pays a dividend in the future and you work towards it.
Buying and holding a property today is no different than starting a business. You invest in an asset, the asset provides a return, and at some point the asset provides a profit. The business asset could be a professional qualification, or it could be a machine that makes something or it could be a house. It's all the same thing really.
But where we maybe differ from other people is that they get a professional qualification, or experience in a job/career etc, and simply transfer it to another employer. There is that instant return on investment as opposed to buying a house or starting a business and building something for future gain.
I've chatted to friends who would love to do what I do, yet the big difference between them and me is that they will not and in a lot of cases cannot have a period where they earn $0. They will only settle for the instant return by having a 9-5 job that pays them. They will not look to the future.
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Another issue is that I read a lot of people on BP who own investment properties but don't see it as a business. They hand too much control to others, like property managers, or they take a small financial loss like a month or two of lost rent like they just lost their favorite aunt, or some tenant screws them over and it's the end of the world. So many people do not see the houses/buildings as a business.
- Investor · Orange County, CA · Member since 2016 · 113 posts · 24 votes10y
@Sterling White Thank you for the well wishes, much appreciated! All the best to you as well.
- Bulawayo, Zimbabwe · Member since 2015 · 1k+ posts · 253 votes10y
I believe in the majority, investors are made.Donald Trump would learn from his father while growing up
"Born" would be more of born with the entrepreneurial/investor spirit.Surely that is powerful.By immersing oneself in a community of investors hearing their testimonies,picking up references used to make decisions, adopting beliefs,attitudes,mindset of the same, one becomes/MADE an investor.
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