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When real estate investors succeed, it’s obviously the result of their hard work, but it’s mostly down to their mindset. Everyone knows that the path of a real estate investor is strewn with pitfalls. To move forward, you need mental strength. It is partly thanks to this specific state of mind that investors will be able to start and then follow their investments.
As a real estate investor and coach myself, I have noticed several common traits over the years, five in particular, that set successful real estate investors apart:
Related: 10 Ways to Develop a Success Mindset
1. Think of real estate investing as a business, not a hobby
If you want to become a successful real estate investor, you must first consider real estate investing as a business in its own right. As in any business, you need to know where you are going, and so you need to set short, medium and long term goals. Depending on these different objectives, you will have to define a specific strategy and a specific action plan to achieve these objectives. Take careful note of your goals and plan, then write down each one. It is only by starting from a well-defined strategy that you will be able to succeed in your real estate investment project.
It is important to keep in mind that success is the result of hard work. Rigor is necessary in this approach. For example, you can spend at least 30 minutes a day practicing on the topic. If, on the other hand, you consider real estate investing as a hobby and you don’t take it seriously, you will encounter many difficulties that will prevent you from moving forward with your project.
2. Have self-confidence to start a project
All successful real estate investors have confidence in themselves and their project. Without this trust, it is almost impossible to start a project. Often times, people and the media help instill a fear of real estate investing because of the risks involved. Since this is a five or six figure investment, or even more, it’s normal to hear and listen to that little voice that says “What if it doesn’t work out as planned?” The fact is that the risk is real, but you can minimize it by mastering this sector. This can be achieved through proper training.
There’s a reason hundreds of thousands of people make money investing in real estate. Don’t let the people around you discourage you. If you start off on the right foot, the risks are minimal. To have confidence in yourself and in your project, it can be interesting to attend seminars on the subject of real estate and also to meet other investors. A real estate investment coach is also a great alternative. They will help you see more clearly and give you the missing pieces of the puzzle to make your project a success.
Related: Why Mindset Matters for Success
3. Accept that you can’t control everything
This mindset is necessary to move your project forward, no matter what. There are many settings that you will not be able to control. But the difficulties you may encounter along the way should not discourage you. For example, it’s very likely that you won’t find a profitable property the first time around — it can take months. There is also the economic context and changes in the law or government decisions, which are different parameters that cannot be changed. You have to focus all your energy on the parameters that you can control, such as the condition of the property or the quality of the tenants. If you worry about other parameters that are beyond your control, you will waste your time and it will further stray from your goals.
4. Have a long-term vision
To be a successful real estate investor, you must have a long-term view. This vision will allow you to identify the properties that correspond to your long-term objectives, and it will allow you to not consider other properties, even if they seem interesting at the time. It will also allow you to prepare and adapt to the various changes that may occur. Without a long-term vision, it will be very difficult for you to pursue your project if your situation suddenly changes. This is why many real estate investors end up abandoning their project in this area.
For example, in France, there has been a change in the DPE (energy performance diagnosis) standards which means that poorly insulated properties will no longer be able to be rented from 2023. Today, property investors who have bought this type of property and who had no long-term vision must spend a lot of money on major work or resell their property.
Related: Learn how to make successful real estate investments
5. Always be in learning mode
Successful real estate investors aren’t afraid to question themselves when they make a mistake or receive criticism. No matter how far you’ve come in real estate investing, you need to be in a constant learning mode to stay on top of your game. The various techniques that work well today may become obsolete tomorrow. Different regulations, as well as style trends or tenant requirements may change. Therefore, it is very important to keep an eye on the latest developments. You can stay up to date with the real estate industry on the web or by attending real estate seminars and events. Real estate courses are also a great way to hone your skills.
So, do you have the mindset of a successful real estate investor? Review the five traits above to see if you have what it takes to shine in the world of real estate investing. Remember, success is the result of their hard work, but having the right mindset is what will truly allow you to thrive.