Why is it some investors seem to float through “interesting” times successfully with their deals flowing smoothly and profits consistent, while others seem to languish, having problems with their investments not performing as they should, and their deals not consistently delivering their expected profits? I think it is because they don’t follow some basic rules for successful investing that I’ve found over time.
I’ve listed some of the most important aspects I’ve found below, but let me give you the overall Rule #1 I’ve set for myself when it comes to investing.
Rule #1: I’m not a victim!!!
This means that all wins and losses are up to me. I am solely responsible for my actions and outcomes, and I take full responsibility for all good or bad things that happen.
Please read that over 3 times!
Whether you are new or experienced this pertains to you. It is impossible when you are new to know everything about the business, and mistakes will be made. However, the best one can do is immerse oneself into learning all you can about investing “the right way.” That is why Alexis’ lab is such an important step in your training.
Rule #2: Do your homework.
As an example, do not just look at the average price of your comparable sales and actives. Get out and drive them. Knock on doors to see the most similar comps. Be “Alexis bold” and say, “May I please take a quick look around your house? I may be buying one around the corner and your home is the same.” It is imperative that you have a very good idea of the eventual sales price of your home. Also, really go deep with your contractor prior to writing your offers to ensure that your fixing-up prices are indeed accurate. These are just a few examples of “doing your homework.”
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Rule #3: It doesn’t happen twice.
Mistakes are inevitable. We all make them. But the winners rarely make the same mistake twice. They find out what they did wrong. Analyze other ways to do what needs to be done and correct the mistake or problem to make sure it doesn’t happen again.
Rule # 4: Always seek other options to ensure you are looking at the best solution to every issue.
Example #1: I find a great deal. Should I do it myself? Sell as is? Fix it up? Assign to a contractor? What are ALL of my options (think out of the box) for the best solution for my circumstances?
Example #2: I find a big, unexpected repair on a job. Do I do the repair? Do I just disclose it? Who else could I ask to look at it? Who could I consult who has been through this? STOP, THINK, write out options, and solve the problem.
I find the more options I consider (within reason—don’t get stuck), the better solutions I come up with.
Rule # 5: Abhor conflict.
Successful investors (and people in general) who look for solutions instead of conflict seem to slide easier through deals and life. Always avoid shaky characters and deals that just don’t “smell right.” When conflicts do arise, look for win/win situations. ALWAYS, in any situation, see things from the other guy’s point of view.
Well, I’m not helping you find deals with this article, I’m helping you make the deals you find go smoother, ensure profits, and most importantly, give you peace of mind as you build your long term real estate empire. This is a long-term process. Commit to the above and your journey to riches will be smoother.
Coach Tim Rhode
For More Information on Hiring Tim to Coach You to a Successful Investing Career, Call our Senior Consultant Jim Park at 800-310-7730 x114
