The REI Investing Mindset

16 Replies

This past weekend I was fortunate enough to attend my very first real estate investing seminar. The seminar, which held in my home state of New Jersey, introduced me to the concepts of REI Investing through the purchase of tax liens and deeds. As a complete beginner, Prior to this seminar, this REI strategy (and the concept of REI opportunities outside of being a real estate agent) was relatively alien to me. Not only was I not aware there were other alternative strategies, I didn't even think they existed. So when I say that what I learned altered the course of my financial success and - by extension - my life forever, I say this with the greatest humility.

The seminar was 3 whole days of immersion into the foundations of REI investing. Concepts such as the 1% percent rule, exit strategies, and financing methods struck the boundaries of my mind, electrified new possibilities and expanded the boundaries of my mind. I became a sponge with immutability. Similarly such concepts like redemption periods, auctions, and redemption interest rates, gave new insight and forced me to broaden my definition of investing. I could now realize my adolescent dream to be a property owner without become a real estate agent.

The thought had given me new life. And even though I was possessed with renewed purpose and confidence, I couldn’t help but notice the feelings of uncertainty. There sitting in the midst of all the rapture was a faint feeling that we may have been taken advantage of and even somewhat played. Did I get everything i had hoped to gain from this training? On cue, as if she knew exact frequency that tuned her into to my innermost thoughts, my girlfriend and business partner uttered, “So what did we pay the 500 dollars for exactly?”

She continued, “We didn’t make any investments, not in liens or deeds, and we don’t have access to website until tomorrow. That website better work” she retorted doubtingly.

As I analyzed sentiment and my own, I realized that we had felt “played” because we entered the seminar with a certain set of expectations. Because those expectations weren’t met with what we “assumed” we’d be getting, the end result had fully measured up. Without those expectations, I knew without a doubt that the training had delivered in a significant way.

We had paid the 500 for an educational development. The education was necessary because it laid the foundation that I believe was vital if are to Have success. It transformed us from consumers into real investors by developing within us REI mindsets.

Now some will venture and say well Bayshawn you could’ve developed that mindset for free just by searching the web. Others will say you could’ve found a mentor. Still others will say it was worth it but you could have found it for cheaper. To those statements, I confer, possibly so.

And to those inquiries I challenge, how do you obtain a particular thought pattern you never knew you needed? I can say that for me, the speaker delivered on promise. He said the kind of thinking that lead me to that seminar was not the level of thinking that would lead me to financial goals. And it certainly wasn’t that way of thinking that I left with.

However, it took some introspection and a bit of honesty to understand that issue was my expectations. I wasn’t to be given an investment but a roadmap to, keys and tools for successful investing. It was then I said excitedly to my partner, “We got exactly what we came here for. We received the foundational element that every investor must have. And because we received it, you and I will never live like the everyday consumer ever again.” And to me that’s worth more than anything else he could have given us. Without this way of thinking, we would have never entered into the business.

I know that all the other training is vital to the success of any one seeking a lucrative career in any part of real estate. However having an investor mindset I believe is the most important because it’s the foundation upon which the latter more complicated concepts are built. Without an investor mindset it can be easy to fall by the wayside, easily get distracted or subverted, or downright give up.

Having an investor mindset will foster your creativity; you will continue challenge yourself to find and implement strategies that meet your financial goals.

As an extension, an investor mindset will facilitate your personal growth; you’ll challenge the limits of your comfort zones and do things you’ve never done before.

Having an investor mindset will allow you stay motivated because it’s where your ”WHY” will take root, offshoot, and create anchors on which your perseverance and determination will stand. Having an investor mindset will allow you to absorb knowledge in a wholelistic way that will benefit you but those around you (the monopoly game example in my bio), embodying a ”win win win” business model both in business and in life.

Last but certainly not least, Having an investor mindset fosters confidence, agency, and capability because knowing how to do something and applying what you know how to do creates momentum and conditions ripe with potential success.

An investor mindset allows one to BE an REI Investor rather than be a consumer who's trying to invest. Thus I highly suggest, for anyone looking to invest to develop an Investor Mindset. And if you've already begun, to always keep your mindset at its investing best. It may sound obvious to some seasoned vets but in a market in constant flux, strategies and thought processes can become stale and force you to adapt. The investors mindset keeps you prepped.

@Bayshawn Davis I see this is one of your first posts here so Welcome to BP.

It is great that you are excited and motivated. But I can tell you to some degree you were "played" as you say. Many of the things you were taught are legitimate strategies that you can use. However they were very likely presented in an overly optimistic way. As you move forward, you are going to start hitting roadblocks. You need to persist and break though those road blocks.  Good luck, were here to help

@Ned Carey

Hi Ned, thanks so much for the words of wisdom. The intuitive me knows that very much I did, but that determined me saw a hurdle and chose not to let it block my path. I made a conscious choice to turn what could have been a mountain that crushed my desire into a stepping stone that compelled me to learn more and more.

But thank you for your vote of confidence. I know this road is not going to be all candy and sunny days but i certainly look forward to the challenges and growth.

@Bayshawn Davis   If you can sustain this passion/drive to learn and put action behind it then you will undoubtedly do well.  A good read to learn more on some of these alternative forms of investing is "The Ultimate Step by Step Guide to Finding and Investing in Off-Market Real Estate" by Liran Koren.   Also, if you haven't read "Rich Dad Poor Dad" then it is a must as another way to convert you from a W-2 consumer mindset into that of an investor.  Best of luck to you, hope you hit your 2019 goals you set for yourself. 

@Scott Passman

I’m certain there will be times when I question it Scott! I’ll have to take it step by step, like haw did in Who Moved My Cheese. But thank you for encouragement. It’s much appreciated.

As for your question, I have read Rich Dad Poor Dad as well as the Cash flow quadrant.

Another book that I found priceless was the prosperity bible. I think you could benefit greatly from it also if you haven’t read it already.

1. So well written I am hesitant to reply in my choppy sentence structure ((((grinz))))!

2.- You ultimately invested $500.00 in you and your partner! If you always approach paid learning with your eye wide open and do not fall for any sales pitches along the way, then some money spent in education is valuable. Yes the content is out there for free but as you said it was immersion and conversion and therefor beneficial.

3. - Knowledge is power and expansion of options and learning about  other strategies is a foundation to build upon . I like to know about these tools/options  because when things change in the market some tools can be used at certain times. This idea gave me a comfort level instead of fearing the cycles in the market ! 

4. Well done and amen to this statement too."investor mindset it can be easy to fall by the wayside, easily get distracted or subverted, or downright give up. As Brandon Turner says what set you apart from those who simply give up or never get started?  MINDSET,knowing the numbers , plus action .

Thanks for the post!

@Bayshawn Davis your mindset will develop based on the things you read, the things you listen to/watch, and the people you associate with. If you want to develop a successful mindset, then read things written by successful people, listen to their podcasts, but most importantly, associate with those successful people. If that $500 gave you an opportunity to create connections with people who are successfully doing what you are wanting to do, then that $500 was a very small price to pay for access to the right people.

@Bayshawn Davis  

The first mistake many newbies make is thinking that they can be successful REI by just learning the technical know-how and remaining apathetic to Mindset.

MIndset is a central piece to being successful in any venture and REI is no exception.

@Ola Dantis

I absolutely agree! Would you like share how developing and maintaining the proper mindset has aided you in your REI success Ola?

Any tips on how youve been able to endure even through hardship/adversary or experiences in which the proper mindset helped you overcome would be greatly appreciated.

Originally posted by @Bayshawn Davis :

@Ola Dantis

I absolutely agree! Would you like share how developing and maintaining the proper mindset has aided you in your REI success Ola?

Any tips on how youve been able to endure even through hardship/adversary or experiences in which the proper mindset helped you overcome would be greatly appreciated.

 I wrote on another forum: 

What have you done to keep your mind healthy?

  • 🧠Mind Fortification: Read a ton of self-help and psychology books. Yes, one can read all the Real Estate books in the world but then without feeding your brain with other types of knowledge, then one could become an educated unmotivated bum! I reming myself that REI is a long game and not a GRQ scheme.
  • 🧘Meditation: When some people see or hear meditation they automatically think monk in a robe or being flaky or whatever; however, that just isn't true. The kind of meditation I am referring to here is the one called "Taking Quiet Time", its from a guy called Trevor G Blake, the author of Three Simple Steps, great book by the way.
  • 🎥 YouTube: Yes, this one is so KEY! Think about this for a second: imagine we eat for a whole year and not pass anything out, won't that be very interesting? It is kind of what we do with our brains, we allow things into our mind voluntarily or otherwise via television, Social Media (the worst), family, friends, and a myriad of avenues, but don't clean out any brain poop 💩. I think constant listening to motivational speakers on YouTube helps with dislodging some of our preconceived notions and replace it with better truths.

When depression rears its ugly head, how do you deal with it?

  • 🙏Gratitude: If you are living in America today, you are amongst the luckiest human begins alive. (FULL STOP)
  • Of course, when you are down and out and not feeling like doing anything, this is not the first thing that comes to one's mind. That said, it is important to zoom out of our ME-ME situation and think about others in the world. A great quote from Zig Ziglar is “You will get all you want in life, if you help enough other people get what they want.” When we start forcing ourselves to think about "how can I help somebody else today without expecting anything in return is when things start to take a new turn.
  • 🎧 Listen to Inspiring Music: Not REI podcast lol, that usually doesn't during the down moments
  • 🚶‍♂️Walk in the woods (or park): There is actually research that suggests walking in the woods can lead to moments of transcendence because we feel so small in the woods and we start to appreciate how big our world is and how small we are relative to it.

What do you do to keep yourself at peak performance?

  • 😴SLEEP: Most of us entrepreneurs pride ourselves on "working long hours" like a badge of honour (some even say I will sleep when I die 😲😲😲) - I mean who says that!
  • 🗣️SELF-TALK: Many people assume wisdom just comes naturally. No, wisdom comes from self-reflection plus solitude. In his quintessential classic book: Think And Grow Rich, Napoleon Hill takes about this and how to imagine a council of wise advisors all in your head though. Now, I get it this doesn't help if someone is already feeling like they are losing their mind but I think there is value in self-talk and reflection because you start to solve your own problems. Of course, there should be a time to know when to seek outside help.
  • ✈️ TRAVEL: Don't just stay in the resort go out and speak to the locals. Most people live and die within a few miles of where they were born. Travel can help to get some perspective and help with gratitude.

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