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The greatest investors in the world did not get where they are by simply coasting through life and waiting for their assets to pay off. Instead, they found their place in the world by learning to identify key opportunities and jumping on them when they had the chance by building their investor mindsets.
While some people are naturally in a better position to start investing, having the money to get started is never going to be enough to find long-lasting success. After all, real estate investing is a lot more work than it may seem when compared to the goal of ‘passive income’ that most investors pursue.
So, if you want to build a portfolio that is going to stand the test of time, you need to put you focus on building a strong investor mindset. However, there are plenty of behaviours and factors that can actively work against creating this essential point of view.
Before we dive into the critical mistakes you can make while building your investor mindset, if you want to connect with a team of financing experts who will help you nourish both your investor mindset and your portfolio, click the link below to book a free strategy call with our team at LendCity today.
Some of these critical mistakes that you need to avoid while building your investor mindset are:
Waiting Too Long/Not Taking Action
The real estate market is a fast-moving network of opportunities that investors are constantly scouring in search of the best deals. This means that whenever you see an opportunity that may work for you, you need to jump on it. Otherwise you run the risk of missing out on it entirely as someone who is more prepared to employ the investor mindset comes in to take your place.
It is very easy to become complacent and say that you are going to wait for ‘better market conditions’ or a ‘better opportunity’ but the truth is that there is no way to accurately know what is going to happen next in the world of real estate. So, taking your time to get out there or failing to take action strictly leaves you in the cold as market conditions pass you buy, and more-prepared investors make money off of investments that could have been yours.
Paying Too Much Attention to Other People’s Mistakes
There is nothing wrong with being cautious and learning from other people’s mistakes. After all, no one would make any meaningful progress in life if we simply refused to learn from the people who attempted things before us. However, there is such thing as too much caution when using someone’s past experiences to guide your future.
While there is a lot that can be learned from listening to and understanding where other investors have tried out different strategies and methods, that should never come at the price of becoming too afraid to take risks with your investments. After all, as long as your plan for them accordingly, big risks can sometimes generate meaningful returns if you are cautious enough without being too cautious.
This is one of the cornerstones of the investor mindset.
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Surrounding Yourself With Unproductive People
Humans have a pack mentality; we tend to emulate the behaviours and motivations of the people we surround ourselves with. So, if you want to be productive and build meaningful investments that will help you find long-lasting success, you need to ensure that the people you choose to hang around and spend your time with are also dedicated to achieving their own personal successes.
This does not mean that you need to strictly surround yourself with other investors and real estate types, but you should aim to associate with people who build strong habits and set goals that can help drive them forward in order to help motivate yourself to do the same.
Being Over-Confident About Your Investments
Real estate investing absolutely requires you to be confident and trust your knowledge and instincts when it comes to most projects. However, you also need to be able to admit when you do not know the best route forward so that you can ask for help.
Realtors, mortgage agents and real estate coaches exist and offer their services because it is not reasonable for one person to know everything that they would ever need to know. That’s why the true mark of a professional investor mindset is not the person who can answer the most questions, but the person who knows when they need to consult another expert in order to ensure that everything is done properly.
Neglecting to Set Goals or Make a Proper Plan
While it can feel easy to say that you are going to simply start investing and figure it all out later, diving into your real estate investments without a plan or goals in mind is one of the biggest mistakes that you can make and allowing yourself to do this can contribute to a very complacent mindset that will not contribute to long-term success. Instead, you need a strong investor mindset.
When you are investing, especially in an asset as expensive as real estate, you need to set goals and have a plan forward. Otherwise, you will find yourself throwing money at a problem and hoping that everything will pay you back later with no guarantee of the sort. Neglecting to build plans and set goals can also lead to you becoming very disorganized without a clear metric to track your progress and gauge your success.
Take The First Step to Strong Investments Through the Investor Mindset
If you are ready to take the first step towards building strong investments and achieving long-lasting success in the world of real estate with your investor mindset, then look no further. At LendCity, we work with a wide network of lenders to get you pre-approved for your next mortgage quickly and easily so that you can confidently know that you are getting the best possible financing at the best available rates every single time.