Real estate investing isn’t just about the brick-and-mortar components. In fact, I could care less about the specific details of a property, as long as it’s safe and in good condition. What really matters when it comes to investing is getting your mind right.
On this episode of Investing in Real Estate, you’re going to learn about the critical connection between mindset and success for investors, and how you can sharpen your mindset in order to reach financial freedom.
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our mindset is how you think about yourself, your goals, and the world around you. It informs the way you perceive reality and respond to situations. There are two different types of mindsets—fixed and growth mindsets.
People who have fixed mindset carry around a lot of limiting beliefs. When it comes to real estate investing, they might think that building wealth is not for them. They may even verbalize things like, “I’m bad with money,” or “money doesn’t grow on trees.” They believe their financial situation is unchangeable. They adopt these limiting beliefs and stop themselves from even trying. Our thoughts and words are very powerful, so having a fixed mindset can hold you back.
Those who have a growth mindset, however, believe in their ability to cultivate new skills, improve, and affect change. They persist when facing setbacks, are open to feedback, and they approach challenges with curiosity. People who have a growth mindset are dedicated to learning. They view their mistakes as learning opportunities, not something that determines their value as a person.
As you can imagine, having a growth mindset is more conducive to building wealth through real estate investing. Sometimes unexpected things happen; you are going to make a mistake or have some bad luck along the way. But if you adopt a growth mindset, you’ll understand that these problems can be fixed, and you can see the value in learning a hard lesson in order to avoid similar mistakes down the road.
Here’s what it takes to adopt the mindset habits of a successful real estate investor:
The best investors are visionaries. They start with a broad-stroke strategy and develop detailed tactics to reach their goals. This is only possible with a growth mindset.
A growth mindset in real estate investment is about self-improvement through learning. Smart investors make a plan, and then adapt it when they come across new information. They have the guts to recognize when they’re wrong and quickly return to the drawing board.
The next piece is that successful investors embrace the idea that not everything is under their control. Even in-depth research can’t guarantee perfect outcomes. It’s very likely that you’re going to come across challenges like evictions and vacancies. Instead of losing your grip when things go wrong, you grasp what you can control and work with the situation.
Speaking of control, successful investors understand this important principle: you can’t do everything on your own. Part of the growth mindset that successful investors have entails asking for help. Efficient investors hire accountants, lawyers, and other professionals to harness their expertise. They drop their ego and accept the aid of others, because they know this will help them reach their goals faster.
Finally—perhaps most importantly—successful real estate investors are confident. They’re risk-aware but not risk-averse, planning and taking risks to reach their goals.
The good news is, no matter your starting point, we all hold the potential to change our mindsets. But how do you actually implement these mindset shifts? I have a six-step process I’m going to share with you.
- Acknowledge your mindset blocks. The first step to changing your mindset is realizing that you have some deep-rooted beliefs that are negatively impacting you. Write down any limiting beliefs you hold about money, your capabilities, and your potential for success.
- Set realistic goals. You’re not going to change your mindset overnight. In fact, you probably have some tendencies and limiting beliefs that will rear their ugly heads for years to come. But once you have an awareness around your mindset, you’ll be more likely to stop negative thinking in its tracks.
- Ask for help. Have the audacity to reach out to other people you can learn from, from specialists in their fields to investors you look up to. Once you understand how connecting with others can help you accelerate your progress, your readiness to learn will grow.
- Take action. The only way to progress toward your goals and build confidence is through taking action. Just start moving forward, and take one step at a time.
- Celebrate your success. Even the smallest win should be celebrated. This will help you train your mind to focus on the positives.
- The final tip is the hardest. You must embrace failure. Mistakes are inevitable in real estate investing; how you approach them is everything. Give yourself time to be disappointed, then sit down, analyze, and find ways to do better next time.
Establishing the right mindset is crucial for investors, but it’s hard to change your entire belief system over the span of a YouTube video. That’s why I have a nine-module course created for anyone who wants to create financial freedom.
It’s called the Financial Freedom Academy, and I developed it with my wife, Natali, after long years of restrictive jobs and stressful budgeting. We put everything we learned into this course to help others avoid our mistakes and reach their definition of financial freedom.
Inside the course, you’ll find 30-minute modules around topics like money mindset, assets and liabilities, and more. You’ll take a deep dive into your current situation and ways to turn it around. We also have an exclusive Facebook group full of support and networking opportunities. You can sign up at financialfreedomacademy.com
Changing your mindset around finances and investing is a complex topic. I hope this video gave you the tools you need to start transforming your mindset, squash limiting beliefs, and build wealth through real estate investing.
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DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments.
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