Insiders Secrets for Buying an Investment Property Series
Did you know that Thomas Edison’s teachers said he was “too stupid to learn anything”? Beethoven’s instructor once called him “a hopeless composer”, and Babe Ruth was known as the “strikeout king” for 5 different seasons.
A key trait of incredibly successful individuals is that they do not let their past determine their future. They rise up and conquer their industry, leaving a mark that no one can ever erase.
You may not be the next Edison, Beethoven, or Babe Ruth, but you do have the ability to achieve incredible success. Lets go over 5 keys that are essential and nonnegotiable in The RIGHT Way to Rental Property Success.
Think the RIGHT Thoughts
Often overlooked, thinking the RIGHT thoughts is perhaps the most important step. It’s not an external action, but an internal mindset you need to create. You can dive into all the science backed reasons why mindset matters when you have more time. For today, start by flipping a simple switch in your head by saying to yourself. “I am doing this”, rather than, “I want to do this.” Instead of “I can do this”, it is, “I will do this”. You mind needs to say, “I don’t give up”, rather than, “I hope I won’t give up”.
A very successful real estate investor, Grant Cardone, is known for his “10x Rule”. Along with reading your written goals out loud to yourself every morning, he encourages the practice of 10xing. Take whatever goal you may have, multiply it by ten, change your plan/mindset to reflect that new goal, and take action. Your mind will naturally work to solve the problem or goal you’ve set before it, so raise your goal & think differently.
We all know the very famous quote of Jim Rohn, “you are the average of the 5 people you spend the most time with”. This is a simple fact of homeostasis. Homeostasis is a scientific term that essentially means that things like to stay constant and level. Be mindful of the people with whom you spend the most time and how they influence you.
Study the RIGHT Source
It is easy to get overwhelmed when you plunge into the world of real estate investing. Many people get overcome with “analysis paralysis”, never deciding on a path to commit too and never getting started. The secret to overcoming analysis paralysis is in focus.
You can find incredibly helpful information from books, podcasts, forums, coaching programs, etc. The key to educating yourself successfully is to FOCUS on your chosen plan, and find success there first before moving on to other areas.
Pick the RIGHT Plan
This plan is not your business plan, which you can of course draft as well. The plan we are referring to here is a simple written declaration of where you are headed. This kind of plan outlines your vision for where you want to go and how you plan to get there.
Ask yourself: What is the end goal? Where are you headed? What kind of properties do you want to buy? How often will you buy them? Do you want to solely buy and hold or use other strategies as well? The goal of a plan is to get you thinking, learning and strategizing. It can be fluid and may change overtime, the only nonnegotiable is that you MUST write it down.
Acquire the RIGHT Assets
Simply put, achieving success through rental properties will require you to acquire the right assets and avoid liabilities. You can roll back through our articles here to review what makes properties the RIGHT one to buy, what makes a deal a good deal, and how to get the most out of each and every rental property. Just because something looks like a good deal, doesn’t mean you should buy it. Make sure it fits in to your plan and your budget AND your ability to manage (or your property managers ability to manage). Bottom line, if you want to build wealth, collect more assets and decrease your liabilities.
Manage the RIGHT Metrics
All the steps up to this point are for nothing if you can’t manage the asset you have purchased. Rental properties are different from most other asset classes because they must continually be maintained and managed.
With respect to real estate, a metric would be how your property is performing. What did the cash flow look like last month? What kind of increase did you see in expenses over the previous year? What has appreciation done to your property over the last decade? A great property manager will help you with both the physical and business management of your asset, but keeping your eye on the overall metrics is key to your success.
To wrap up – Commit yourself. Invest the time needed to learn everything you need to know. Surround yourself with the right people. Reach out to your broker to find the RIGHT properties for your plan and budget. Do the work, watch every metric and grow your wealth.
Next up in our Insiders Secrets for Buying an Investment Property series is – Overcoming the “Get Rich Quick” Mindset.
Parker Properties, Inc.
With a background in property management, I know which homes make the best investments and excel at managing those properties for you after we close. My meticulous eye and high standards are applied to every aspect of caring for your home & your investment.
PO Box 1273
Kamas, Utah 84036