Some real estate investors are successful from the very beginning. Their first deal is a home run. Their life changes seemingly overnight and it’s as if they have the golden touch. That wasn’t me.
I stumbled, I fell, I scratched my knees then got back up and kept going. It was as if I was trying to summit a perilous mountain.
My first few deals consumed weeks and months of my time not to mention hard earned money that I would never get back. They all seemed to fall apart until one finally fell into place. What changed most between the first deal and that deal was my mindset.
Shifting my mindset allowed me to move a mountain that before seemed insurmountable. That same year I doubled my portfolio and the revenue it generated. If you are where I was then you may benefit from making these mindset shifts as well.
Adopt an abundance mindset
Do you feel that the world is full of opportunity, that there is enough to go around? If not, you may have a scarcity mindset. This means, you believe there is a limit to opportunities, resources and indirectly to your own success.
There was a point when I thought “there are no good deals” and when I found a potential “good deal” it would be my only opportunity. I would get tied into one of these elusive “good deals” and invariably a better deal would come along.
Because I had already invested time and money into my “good deal” I wanted to see it through. Even when things seemed futile, I would not move on. At one point I was tied up in a “good deal” for the greater part of a year. It ultimately fell through.
My scarcity mindset and “good deal” syndrome cost me thousands of dollars, not to mention the opportunity cost of the better deals I had missed out on.
"I adopted a mindset of abundance."
After seeing this pattern repeat itself, I started to realize, there are plenty of good deals and plenty of better deals as well. I had adopted a mindset of abundance.
I adjusted my criteria and opened up my search to other markets. Because I was so focused on the leaking faucet in one market, I was missing the open fire hose just a few towns over.
Negotiating became much easier. I did not hold back on requests to sellers out of fear they would back out and walk-away. Now I could easily walk away if an opportunity turned futile because I knew there would be better deals on the way. In fact, one time I did walk away. Weeks later the seller, the seller’s attorney, and the brokers all reached out to me trying to salvage this “good deal”.
How the tables had turned. An abundance mindset means you believe there currently is and will continue to be ample opportunity. My newly abundant mindset lead me to finding more deals, having more deals allowed me to be more discerning, saving me time, money and dignity.
An abundance mindset means you believe there currently is and will continue to be ample opportunity.
See yourself as a real estate investor
Are you a real estate investor or a (insert noun you identify with) that invests in real estate? For a long time, I didn’t believe I was a real estate investor. I didn’t have my first property yet, I had no success to my name and I had lost more money than I had made. How dare I call myself a real estate investor?
A key to seeing yourself as an investor is treating investing as a business not a hobby. I had to be more intentional, consistent and disciplined about educating myself, finding deals, making offers, and building relationships.
Despite all my shame and shortcomings, I had to see myself as a real estate investor to break through my plateau and find an opportunity that was hiding in front of me.
Seeing myself as an investor and being proud of it allowed me to be open about my goals. I talked to brokers, contractors, friends and family differently. I started sharing my success, failure, and growth. This was crucial in building a pool of partners I would go on to do future deals with.
“It changed the way they saw me, the way I saw myself and the way I saw the world. ”
It changed the way they saw me, the way I saw myself and the way I saw the world. During walks, or running errands I would notice types of new construction, business openings, renovations and analyze how they affected the area.
I started making investor style offers. Surely a few sellers were offended but I was no longer afraid to ask for what I wanted. I even started asking for more than what I wanted to anchor sellers for a stronger negotiation.
If a vacant space could be optimized, I figured out how to do it. Whether by adding a few bedrooms, or an entire unit. This creativity helped to create a better deal from an almost futile opportunity.
Don’t wait until you’re finally “successful”. See yourself as a real estate investor right now! This mindset shift will open the door to more opportunities.
Think long term
Even though real estate investing is a long-term strategy there is an overwhelming amount of overnight success stories. Where people are able to retire, quit their jobs in a few months or 1-2 years, or become millionaires from one deal.
With these lofty aspirations in mind, I was also trying to retire off of one deal. Mistakenly, I was only focused on how much I could profit in the first year. Mistakenly, I was so busy trying to retire off of one deal I missed the importance of getting one deal done.
This deal would lead to me doing more deals that I would never have unless I had started. Considering the long-term appreciation, the growth in cash flow and additional investments this income could allow me to make, indirectly this one deal could retire me. Just not in the unrealistic overnight time frame I initially desired.
All the time and capital I had lost pursuing my first few deals made me feel as if I had failed. More than once I considered hanging up the gloves and calling it quits because success was not coming fast enough.
When I shifted my mindset to think long-term I realized I have not failed unless I quit. What I had seen as failure was actually a hands-on education. With each mistake I was learning the lessons that would make me a better investor.
Think about how an investment opportunity will affect you both now and in the long term as you continue your journey as an investor.