By Greg Herlean
The real estate business can seem like a hard nut to crack, especially when you’re just starting out. The initial learning curve seems steep, and there’s so much that can go wrong. If you let yourself think this way, negativity can creep in and completely poison your chances of becoming a successful real estate investor.
Of all the advice I give about investment, I find myself saying this the most: stay positive! Success in real estate investing is as much a mind game as anything else. It’s all about convincing yourself that you can do this and that you will succeed. When you maintain a positive attitude, let yourself make mistakes, and forgive yourself for failing, you win the mind game. When you start to get overwhelmed, you can lose focus, and you can very quickly defeat yourself and stand in your own way.
In my time as a professional investor and advisor, I’ve had to take a lot of risks, and I’ve made a lot of mistakes. These tips have helped me stay positive and focused to bounce back from failure, win the game, and make great investment decisions.
Everyone Makes Mistakes – And You Will, Too!
First, if you’re going to be successful in the real estate business, you need to know when to act. You want to gather as much information as possible on the market, the properties you’re interested in, the contractors you’ll be working with, and everything else you can find out about flipping.
However, a lot of first-time investors make their first mistake here. They feel like they can’t possibly know enough yet to take action. They fear making a huge mistake on their first investment. This feeling paralyzes them, and they miss a lot of great real estate deals as they procrastinate and avoid taking action.
You are going to make mistakes. Know this and know that you will learn from your mistakes, and you’ll have the right attitude to face problems head-on and get through them.
You Aren’t Going to Get Rich Overnight
Next, your first flip is not likely to set you up for the rest of your life. It is, however, likely to set you up to make more money on your next flip. You’ve watched Mike on Flip Men, and you’ve seen how fast and exciting this business can be. It’s fast-paced, but it’s also not a get-rich-quick scheme.
A lot of the money you earn on your first flip will likely get absorbed into your next flip until you can rehab and sell it. Then you’ll repeat the process again, and each time you’ll make a little bit more money to put into savings and to fund future investments. Welcome to life as a real estate investor!
Take a Look at the Big Picture and the Little Details
If you start to feel overwhelmed or disappointed because you’re not getting enough leads or none of your offers are being accepted, take a moment and look at how far you’ve come. Look at your goals and how much progress you’ve made toward them.
If you have a flip project in progress, evaluate where you are in construction and rehab on it and how long it will take to finish before you can get it on the market. This will give you a rough timeline of how long it will take you to start making a profit.
In the real estate business, some days will inevitably be better than others. That’s why, as a real estate investor, you have to keep your head up, keep your eye on the prize, and keep looking for that next great deal.