New investors , or those that tried investing but gave up , always ask me what the best way is to start investing successfully in property . Most start by learning the hard way , by trial and terror and making lots of arbitrary mistakes . This is what we call an autodidact or self-taught person . They eventually reach the point of making small breakthroughs but tend to get stuck all the time and they tend to give up too quickly . The quicker , easier more successful way to start investing is to educate yourself with the right information , right partners and work alongside somebody who has done it already who can guide , mentor and coach you to become successful .
Successful investors who have built wealth in property have either made their money in real estate or invested in real estate while building and operating businesses . Real estate investing is not only what wealthy people do but , in many cases , investing in real estate is how their wealth was created in the first place .
Wealth is about having an abundant mindset ; however , achieving financial freedom is a longerterm game , which requires a specific plan and a strategy . Financial independence is the state of having sufficient personal wealth to live on , without having to work actively , and having the luxury of choosing to work when you want to . Kim Kiyosaki says , “ the true reward of financial freedom is a process of growth , improvement and gaining spiritual and emotional strength to become the most powerful , happy , and successful ‘ you ’ possible ”.
Statistics show that only around 4 % of people worldwide become financially free . The question is what are they doing that others are not ?
Here are six best practices I can share from personal experience , interviews with successful and wealthy businessmen , sportsmen , celebrities and investors , which you can implement to become a great real estate investor .
Lesson One – Develop a growth mindset Having a strong , growth mindset is the most important element in helping you to push forward in your investment ventures , so that you keep focused and determined rather than just giving up when the going gets tough . Mindset is about taking lots of action . If you are not clear as to what you want to achieve and are not positive , inspired , solution orientated , and confident , with a burning desire to succeed , then you just won ’ t be motivated enough take action .
Mindset is all about your belief systems and your attitude . You may have heard of Pareto ’ s 80 / 20 principles , where 20 % of the effort produces 80 % of the results . Tony Robbins , international personal development strategist applies this to success , where he says 80 % of success is psychology ‒ made up of your attitude , beliefs and emotions ‒ while only 20 % is strategy , the knowledge , skills , plan and action steps needed to achieve the result . Having a growth mindset gives you all the right reasons to take action and propel your investment strategy forward beyond your beliefs .
Lesson Two – Invest in yourself first The starting point is to understand what investing actually means . The first part of the definition is directly related to making money . Investing is officially defined as , “ putting ( money ) into financial schemes , shares , property , or a commercial venture with the expectation of achieving a profit .” The second part of its meaning is related to investing in yourself as a person and is when you “ provide or endow someone or something with a particular quality or attribute ”. These are two key attributes of investing that are critical for your success .
To create wealth in real estate , investors need to constantly update their knowledge , skills and reinvent themselves to become financially intelligent . It was the great personal development legend , Jim Rohn , who said , “ Don ’ t wish it was easier , just wish you were better . Don ’ t wish for less problems , wish for more skills .” The learning and investing process should never stop .
Wealth is about having an abundant mindset ; however , achieving financial freedom is a longer-term game , which requires a specific plan and a strategy .
Lesson Three – Information or influence ? Do you have the right information and legitimate facts or is it just hype and marketing influence ? We are living in a period of information overload , noise
www . reimag . co . za MAY 2017 SA Real Estate Investor 55