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The psychology behind your first real estate deal
Long thread!
Do you have what it takes?
Long thread!
Do you have what it takes?
Before we look into the first deal, I want to make one point clear – you need to keep an open mind and continue learning to be successful at real estate.
Each deal is truly unique, and you will run into situations that challenge you as an investor.
Confidence is key.
Each deal is truly unique, and you will run into situations that challenge you as an investor.
Confidence is key.
There are three traits you need to invest in real estate:
1)High-risk Tolerance
2) Unbiased Judgment
3)Long-term Mindset
4)Disciplined Approach
1)High-risk Tolerance
2) Unbiased Judgment
3)Long-term Mindset
4)Disciplined Approach
High-Risk Tolerance:
As you search for your first deal, you will more than likely contemplate the uncertainty of real estate investing.
“Am I ready to invest?”
“Does this deal make sense?”
“What if I lose everything?”
As you search for your first deal, you will more than likely contemplate the uncertainty of real estate investing.
“Am I ready to invest?”
“Does this deal make sense?”
“What if I lose everything?”
Real estate involves risk; any investment does
It is your mentality that holds you back from creating wealth through real estate.
Carry out adequate market research.
Complete thorough due diligence on the property.
Build confidence through an understanding of the market.
It is your mentality that holds you back from creating wealth through real estate.
Carry out adequate market research.
Complete thorough due diligence on the property.
Build confidence through an understanding of the market.
The numbers you see on the spreadsheet are fiction until you close the deal.
Personally, I detach myself from the numbers.
This involves removing emotion from the deal and executing on your thorough due diligence of the property.
Personally, I detach myself from the numbers.
This involves removing emotion from the deal and executing on your thorough due diligence of the property.
Significant risk in real estate occurs when you do not complete thorough due diligence.
You cannot go into a deal hoping for the best.
Focus on risk-adjusted returns.
You cannot go into a deal hoping for the best.
Focus on risk-adjusted returns.
Unbiased Judgement:
You cannot have any bias going into the due diligence period.
As a real estate investor, objectivity is important - have confidence going into the deal but make sure it's because of thorough market research and conservative estimates.
You cannot have any bias going into the due diligence period.
As a real estate investor, objectivity is important - have confidence going into the deal but make sure it's because of thorough market research and conservative estimates.
The psychological fear of losing everything can lead to rash decision making.
The uncertainty behind every investment could make you act without thinking everything through logically.
The uncertainty behind every investment could make you act without thinking everything through logically.
Long-term Mindset:
Your first deal will not make or break your career.
In all honesty, your first deal should be a confidence boost.
Use proper risk management and execute on a deal.
Focus on long-term targets.
Does your system work?
If not? Refine it.
Your first deal will not make or break your career.
In all honesty, your first deal should be a confidence boost.
Use proper risk management and execute on a deal.
Focus on long-term targets.
Does your system work?
If not? Refine it.
Real estate is not a liquid asset. Depending on your strategy, you could be locked into the property for many years
Use this as motivation to take calculated risks
If you know you will be locked into the property for X amount of years, make the asset compound and work for you
Use this as motivation to take calculated risks
If you know you will be locked into the property for X amount of years, make the asset compound and work for you
Disciplined Approach:
This one is self-explanatory.
If you go into the research phase knowing what type of deal you want, do not compromise on your criteria just to close on a property.
If you want XYZ in a deal, make sure you buy XYZ.
This one is self-explanatory.
If you go into the research phase knowing what type of deal you want, do not compromise on your criteria just to close on a property.
If you want XYZ in a deal, make sure you buy XYZ.
Too many times investors take slightly less because of the need to close a deal.
Closing on a poor deal isn't worth it.
However, be careful not to get stuck in analysis paralysis, where you over analyze and end up not making any investment decisions.
Closing on a poor deal isn't worth it.
However, be careful not to get stuck in analysis paralysis, where you over analyze and end up not making any investment decisions.
I hope you enjoyed this thread.
A few of my thoughts surrounding your first time closing a deal.
If anyone has any thoughts, would love to hear them as well.
A few of my thoughts surrounding your first time closing a deal.
If anyone has any thoughts, would love to hear them as well.
