Today I want to share with you what I wish I had learned before I started investing in real estate in 2009 when I didn’t know what I didn’t know…
The overly complex investing approach that I initially decided to pursue led me to waste time, have unnecessary stress, unknowingly participate in high-risk investments, and ultimately start over with an entirely new strategy in 2015. This “discovery process” resulted in six years of hassle. My goal is to save you years of headache by sharing an investing mindset that helped me overcome these obstacles.
It’s simple to make money in real estate, but it’s not easy
Our modern world is complex and the massive amounts of advertising and marketing can be difficult to sort through. Divided beliefs about money complicate matters further. You surely will come across people who do not believe in real estate as an investment vehicle, and at the same time, others make millions in real estate. So how do you sort through the opinions and perspectives? How do you know what to believe?
Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth – Marcus Aurelius
The first step to cut through the muck is to avoid extreme points of view. Someone advocating that real estate is the only asset class to invest in is most often incorrect. On the flip side, someone advocating that real estate is an asset class to avoid at all costs is most likely incorrect as well. The key is to find the middle ground. As Robert Kiyosaki points out in his lectures, there are three sides to a coin, heads, tails, and the edge. By standing on the edge, you can see both heads and tails. This is a critical part of an intelligent investing mindset.
Simple, but not easy
Let’s say your goal is to build wealth. The solution is simple – make money, spend less than you earn, and invest the difference. Over time, you will inevitably build wealth. Ah but it’s not that easy… How will you make money? How much should you save? How do you choose what to invest in?
Consistency and self-education are also necessary
What ties this framework together and produces results is consistency and self-education. Daily, weekly and monthly consistency and educating yourself on the subject at hand will lead you toward your goals. In the first six years of my investing journey, I learned that it’s better to grow wealth slowly and consistently rather than having inconsistent spikes and dips in your investing portfolio. For example, learn how to create $100 a month in passive income, then step up to $1,000 a month, then $10,000 a month, and so on, following a repeatable process throughout your journey.
Most people overestimate what they can achieve in a year and underestimate what they can achieve in a decade – Tony Robbins
Dedicating time to bettering your financial future is a worthwhile pursuit; becoming an overnight success is mostly a myth. I encourage you to get clear on your goals, be patient, educate yourself, view objectively from the edge of the coin, and stay the course. In ten years, you’ll be glad that you did. This is an investing mindset that can make all the difference.
To Your Success
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.