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