The Psychology Of Real Estate Investing

In the 1980s, if you were going to go on a diet,For instance, McElroy says, if you have found a
magazines would tell you to "think thin." Theygood deal, you can get funding for it because
never actually explained what that meant, butother people will want a piece of the action. It isn't
everyone knew they were supposed to do it.about negotiation skills necessarily, he said. Of
Adopt the psychology of the thin person,course, those skills can get you an even better
whatever that was. It follows that, in order todeal at times, but you shouldn't fret over whether
become rich, you should be able to accomplishyou are good at the negotiation table. Just look
that by adopting the psychology of the rich, right?for good deals.
Actually, it does. Specifically, you should adopt theAlthough they are always evaluating risk, always
mindset of the successful real estate investor.aware of it, successful investors are not
Successful real estate investors are opportunists.frightened away by it. They determine whether
They always have their antennae up and ready.the risk seems reasonable. If the numbers add up,
They put themselves in the way of information.McElroy says, then it is a good deal. If it is a good
They "live the life" of the real estate investor, sodeal, the savvy investor goes for it.
to speak. And because of all this, they noticeSimple.
things.People who don't know how to properly evaluate
Ken McElroy, author of "The ABCs of Real Estaterisk may think everything is too risky. They
Investing," which is part of the Rich Dad series,assume, for instance, that a larger deal may be
says it's all about patterns. If you look at enoughtoo risky for a beginner to deal with. They
properties, study enough areas, talk to enoughassume that because they think the investor is
people, he said, you will start to see thesesinking a lot of personal cash into it when, in truth,
patterns. Then things will start to happen. Youa larger deal stands to make a larger sum for the
may start to seem lucky. And, McElroy says, itparticipants. Therefore you may be able to get
may be luck, but it is a sort of luck, that comesmore backers for a deal like that. In the end, you
from being prepared.may put up less personal money than you would
Remember: "Fortune favors the prepared mind."have on a smaller deal.
Opportunity is all around us, but if we are blind toReal estate investment is just like anything else
it, it will be as though it doesn't exist. Theyou want to learn how to do. Well, for one thing,
prepared mind recognizes opportunity.you have to learn how to do it. And you learn by
McElroy emphasizes over and over again thatdoing. Get out there and look at properties. Visit
being successful in real estate is a process. It isn'tcities as though you were intending to buy. Go
just something that happens one day, as in oneonline and read about areas. See what other
day we're suddenly successful. It is somethingpeople have to say about the real estate in a
that you do every day. Eventually things begin toparticular area. Get to know people. Before long,
happen for you.you will know enough to begin thinking about
Someone who is successful focuses on doing aactually making a move. You don't have to have
little at a time, on learning this or that thing, ora wad of cash in hand before you start playing
making this particular deal. It's a "walk before youthe game. Just get out there and enjoy yourself.
can crawl" proposition.The rest will come.