Apart from managing your emotions there will be some other psychological challenges that you might face as a property investor.
- Keeping your discipline to stick to your plan
- Staying motivated to do more deals
- Complacency setting in
- Having to get out of your comfort zone
- Staying positive when things go wrong and finding solutions instead of problems
- Wanting to give up too early
There are many more and I’d like to encourage you to list a few more challenges that you can foresee and to pro-actively make a plan on how you will overcome them.
Overcoming your challenges is a lot easier if you know why you are investing in property. Your initial reaction might be to make more money. But it’s not as simple as that. We are mostly driven by our sub-conscious mind. So ask yourself: “Why do I want to make money?” and whatever the answer is, question it with at least four more levels of ‘why’. Let me give you an example:
I want to make money.—Why?
So I can afford to travel and shop for what I want.—Why?
Because I want to have the choice to do what I want to do.—Why?
So I feel the freedom to be myself.—Why?
Because it fulfills me.
This process gets you thinking and you might potentially discover things about yourself that you never knew. At the end your real ‘why’ or high-level reason will come out. It might be fulfillment, freedom, happiness, or serving others, but it is important for you to know your ‘why’. This will inspire and motivate you to keep going and overcome any challenge that is thrown at you.
How Do Investors Think?
Apart from taking emotions out and knowing your ‘why’, there are a few more important ways in which investors think differently. Let me share some of those briefly with you:
- Debt is good if it makes you money
- Only numbers count
- Constant lookout for new opportunities
- Plan ahead (failing to plan is planning to fail)
- Have discipline, focus, and persistence
- Systematic and organized
- Manage their capital and risk
- Have a positive attitude
- Are flexible and make things work
- Keep learning and upgrading themselves
- Are action-takers
Take for instance new opportunities. When I was younger and drove past an old, run-down house I either didn’t notice it at all or thought it’s just an old, run-down house. When I do the same thing nowadays, I think this would be a great opportunity to buy that house cheaply, refurbish it, and make money. That’s what I mean with adopting your mindset. Are you ready?
Another important piece of the puzzle of how to be successful has nothing to do with property at all, but everything to do with the way you think. Successful people differ from not so successful people by their behavior and way of thinking in the following ways:
Have a sense of gratitude
Give other people credit for their victories
Accept responsibility for their failures
Read every day
Keep a journal
Talk about ideas
Want others to succeed
Share information and data
Keep a “to-be” list
Keep a “to-do/project” list
Set goals and develop life plans
Operate from a transformational perspective
Have a sense of entitlement
Hold a grudge
Take all the credit for their victories
Blame others for their failures
Watch TV every day
Say they keep a journal but really don’t
Talk about people
Secretly hope others fail
Hoard information and data
Don’t know what they want to be
Fly by the seat of their pants
Never set goals
Think they know it all
Operate from a transactional perspective
It might not be so easy to change your way of thinking, but it is entirely possible and definitely worth it!
Ready, Set, Goal
Did you know that fewer than 10% of not so successful people have set their goals in writing, but 97% of successful people have done so? What does that tell you? It surely means that if you want to be a successful property investor you need to specify your goals clearly and capture them in writing.
As you probably have heard before, when setting goals they should be SMART – Specific, Measurable, Achievable, Relevant and Time-bound. You don’t say, “I want to make some money.” Instead, say, “I want to achieve $1,000 per month additional passive income within one year, and $3,000 per month within two years” or such.
So what is your own SMART goal? Please give it some careful thoughts and then write it down.
Then break down your overall goal into smaller, more manageable milestones and take massive action to make them happen. That’s where many people get stuck – they procrastinate. But remember – it’s all in your mind! If you strongly believe in yourself and achieving your goals, you will succeed!
A few more tips are to have an accountability partner who keeps you on track, to regularly evaluate your progress against your plan, and to have a Plan B for your milestones. In case something doesn’t exactly work the way you planned, be flexible and proceed in a different way. One way or another, make it happen.
The Property Apprentice Master, Jochen Siepmann, wants to share the wealth of his knowledge easily and effortlessly with you for FREE. Start your journey now to greater wealth through passive real estate income and capital appreciation with one, or all, of these FREE offers: