To be your best at anything in life, you have to have certain habits that will help you rise above mediocre to that level of success we crave so much. Athletes develop training and nutrition habits that lead them well. CEOs for some of the world’s top companies have developed habits that set them apart from the rest. And, well, some investors just invest – and some investors are highly successful.
If you want to be a highly successful investor, then there are some habits you are going to need to adopt. Ready? Here they are:
1. Highly Successful Investors Invest in their Means.
What would happen if you invest in properties that were outside of your means? This is a terrible way to invest for anyone – especially for those just starting as you will find yourself upside down in your investments very quickly. Carrying around a lot of debt will eventually keep you from meeting all of your other financial obligations. If you are looking to score capital from outside sources, this ill all make you look rather undesirable as an investor.
Rather than make poor investment decisions to show off in an attempt to gain capital, focus on your marketable skills, education, and knowledge.
2. Highly Successful Investors do their Research.
Investing money into something should never be done without doing a diligent workup of the property. View the comps and place your offer accordingly. Never invest in a property without knowing fully what you are getting yourself into. Know this: one bad investment can drag down your entire portfolio.
Do your research!
3. Highly Successful Investors Understand the Investment World.
You would never take your car to a mechanic who referred to your car’s parts as, “that belt thing,” or “the thing that turns to make the air come out.” That would just be silly! It’d be quite evident that the mechanic had no idea what he or she was doing, right?
Well, the same holds for investors. If you want to be taken seriously, then you need to understand the ways of the investment world. Know your terminology, learn about financing, insurance, home valuation, and more. The more you know and understand, the more you can carry on conversations, and the more impressive you will sound to those around you.
4. Highly Successful Investors Have Diversified Portfolios.
If you were a jewelry maker, you wouldn’t spend all of your time making the same necklace or pair of earrings, would you? No. To get the most success in your business, you would have a diverse selection of goods available. This allows you to spark the interest of various people.
Well, when it comes to investing, you also want to diversify. You don’t want to put all your eggs in one basket. Let’s say you begin purchasing 2-bedroom homes in a particular neighborhood – and that neighborhood severely declines in its appeal. You may be left with a high vacancy rate. Spread your investments out in different areas and consider including a mix of commercial properties, single and multi-family properties.
5. Highly Successful Investors are Disciplined.
You can’t make something of yourself if you don’t put in the effort. Sometimes you have to do things when you don’t want to – and sometimes you have to do things you just don’t want to do at all. But, if you are going to be successful, you have to make sacrifices. And, nobody is going to make sure you do this.
You have to be disciplined. You have to know what your goals are and how you intend to achieve them. And then you are going to push yourself to reach these goes. Understand that the actions you take now will impact your future. So, move forward toward your goals with at a disciplined, careful, calculated speed.
Anyone can be an investor. Though, what good is it if you are just a mediocre investor? Find success by putting some of these habits to work in your own life.
Marina Shlomov, a managing partner at ALH|Podland Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out atwww.alhpodland.com. You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on Facebook, Google+, Blogger. and YouTube, Bigger Pockets and REI CLub and LinkedIn.