How to succeed in property investing and this is what you need to do

Property investors require strengths in real estate in order to succeed in property investing

Only invest in property when the core skill needed to win the game of property investing is a strength of yours.

If you’re in business for yourself (yes, real estate investing is a business), then you’ve got to play to win. If you are going to win, then you are going to have to focus on your personal strengths. This is the foundation of great business strategy and great wealth.

When I am naturally skilled at something, I am bound to succeed when I try. I have a better chance of succeeding because I am working in the same direction as my strengths, my interests, my available time, my other commitments and circumstances, and my risk profile.

If we start a business based on interest rather than strengths, then we may be forcing ourselves to work harder and longer. We don’t get an “A” for effort. Effort does not pay the bills. Strengths convert actions into profits.

Unfortunately, most real estate investors focus on their weaknesses. They have been brainwashed or bought into the faulty assumption that anyone can successfully build a real estate portfolio. This is usually not the case.

Media and to a large extent, real estate marketers, have a greater part to play in creating a false emotional response in wannabe real estate investors. That is, to own a million dollar real estate portfolio.

The message is clear. Only invest in property when the core skill needed to win is a strength of yours.

Don’t swim upstream.

 

What you need to do to succeed in property investing

Identify your strengths that will give you a win in the game of real estate investing.

The biggest obstacle is figuring out what our strengths are in the first place.

Read the list below. Think about your answers to uncover your strengths.

  1. Think about or try to identify any time in your past that you were able to pick things up very fast. If you were with others, you ‘got-it’ much faster than all other people around you.
  2. Are there any areas of your life where several different people (who do not know each other) come to you for the same type of advice?
  3. Is there something that many people ask you to help them with?
  4. What are you most productive doing?
  5. Which activities come easily and naturally for you?
  6. What have people praised you for throughout your life?
  7. As a child, were there any activities that you loved doing and that you did better than all your friends?

There are many routes you can take. There are many real estate strategies you can adopt. Rental properties, flipping (i.e., flip to hold or flip to sell), residential, commercial, real estate investment trusts (REITs), land development and renovations. The list goes on. Each of these avenues involves different types of skills and strengths to succeed.

For example, if I am thinking about flipping a real estate property as my real estate strategy, then I will need knowledge and experience in financing, repairing, building, or developing properties. Even when I am not the primary person doing the work, I still need to have an understanding of those components. If a tradesperson tells me something, then I should know if he is on par or off in left field.

What happens if I tried to flip a property? Can I do it? Absolutely. I have to take time off from my current employment and learn things quickly.

Am I interested in flipping? Am I going to accept the higher risk of property flipping? Not sure about it.

Whilst I love to make money as a real estate flipper, flipping doesn’t align with my strengths, interest and risk profile.

If I were to flip properties, then I would be constantly battling the currents. I could do it. But I would be so much slower at it. I am more stressed than someone who has more of a natural inclination towards that sort of work.

I know that my talents and strengths will get me further when I focus on the things I’m good at. Things that I will enjoy.

Why force something unnatural? If you have no skills, knowledge and interest in real estate flipping, don’t flip properties. Similarly, do not renovate a house if you do not have the skills, knowledge and interest in renovation. Whilst the perceived profits may be high, don’t do it. At least not on your first property deal.

Figure out your strengths. Then find a strategy that compliments your personal strengths. Your strengths will enable your interest in the chosen area. You will have fewer headaches. You will only gain self-confidence rather than be challenged and stressed every day. 

Patrick

As the founder of howtobuyrealestate.com.au, it is my mission is to provide you with relevant, actionable and independent information to help you make informed decisions when you’re thinking about buying your first property as a homeowner or property investor. I want you to have the confidence to start right and avoid making costly financial mistakes.

Do let me know if you need assistance and let’s take this journey together.

patrick@howtobuyrealestate.com.au

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