Investing in real estate is not easy, no matter what your preconceived notions might be.
Contrary to popular belief, there is a lot of time, effort, and hard work that goes into
being a successful real estate investor. You don’t want to come into it with a negative
mindset or habits that are not conducive to long term success. This is important,
especially as a new investor and you must develop the right mindset and a consistent
work ethic. There is plenty of money to be made if you can master these things.
With that being said, here are 5 habits to avoid as a new investor:
1) Constantly Comparing Yourself To Other Investors
Unfortunately, this habit is far too common. It’s important to network with other
investors, but comparing yourself to others is a huge mistake. Think about it. Generally
speaking, most investors are at a different stage in their career than you are, and
looking to see how successful they are can very easily bring you down if you compare
yourself to them.
Sure, its nice that they have been doing it longer, and are successful, but just realize
that it took them a lot of time, effort, and hard work to get to where they are right now.
By comparing yourself to them, and their success, all you’re going to do is make
yourself feel like you’re not good enough.
However, you CAN use other investors success as motivation for yourself because it’s
all about how you perceive it. Its a bad idea to compare yourself to other investors with
a “why not me” attitude, but by using their success as a guide for what you should do to
become successful, you can very easily motivate yourself to do the same. Remember,
other investors are successful because they put a lot of effort and a lot of time into their
careers. You should seek to mirror their efforts, not deem yourself as ‘unsuccessful’ just
because you aren’t at their level yet.
2) Not Networking
Networking is a huge part of success in Real Estate and its even more important early
on in your career. Connect with other investors and bounce ideas off of each other.
Remember that asking questions and being curious about the things that other investors
do is how you will learn early on. This is also a great way to connect with potential
power team members.
Also, I would recommend this as a great way to find a mentor, and would highly
recommend doing so. They can help you out by helping you avoid some of the mistakes
that they made, and by guiding you very early on in your Real Estate career. A good
mentor can be invaluable to you, and might mean the difference between success and
struggling early on in your career. It’s important to realize that networking with fellow
investors can be a huge advantage for your business early on.
3) Don’t Be Afraid To Fail
This one is mostly a mindset and can be born out through the way you approach
situations. Ask almost anybody who is successful in ANY career path that you can think
of, and almost all of them will tell you about how they failed at least once on the road to
success. Quite simply, we learn by doing things, and we also learn from our mistakes.
Although it may feel devastating at first, it’s important to pick yourself up, dust yourself
off, and learn from your mistakes.
It’s also very important to NOT let fear of failure dictate the way you make your
decisions. Trust the process, and if you fail, learn from it and try again.
4) Analysis Paralysis
You should not allow the sheer amount of information keep you from making your first
deal. I’m not saying to be unprepared or not to do your due diligence, but you shouldn’t
allow yourself to over analyze the numbers on a property or in a market. This could very
easily keep you from ever buying a property at all and could keep your business from
ever getting off the ground.
Work with your fellow investors to avoid situations like this and with your mentor if you
have one. Have faith in yourself and in your analysis and buy your first investment
property. There is plenty of information out there, and you can very easily get so
overwhelmed that you never make your first purchase of an investment property
Now, obviously I’m not advocating that you blindly buy a property without analyzing the
numbers and and comps in the neighborhood, but don’t over analyze and be afraid to
5) Having No Set Goals
Having no real goals is a problem for new investors. You must first know your outcome
and know what you want to gain and why.
Without a specific goal, you may feel unmotivated because in your mind, you have
nothing that your really working for. A “why” will also motivate you and give you a
reason to work hard towards whatever goal you have set for yourself.
Giving yourself a reason why will make your end goal seem much more real in your mind, and
will motivate you to work hard towards your goals everyday. It’s also important to
reassess your goals occasionally to see if they still line up with what you want.
Becoming a real estate investor was the best decision I ever made for myself, and
avoiding these 5 harmful habits and mindsets helped me accomplish this.
There is plenty of opportunities and money to be made in Real Estate and hopefully this will help
you attain it.