When it comes to property investment success, most people focus on the bare bone facts and figures. It is a numbers’ game after all, and so logically, best suited to those who like to spend more time in their left brain.
But is investment success solely based on sums?
Surely if this were the case, everyone who became an investor could replicate the same, wildly successful scientific formula as the guy who first made millions buying property assets?
But obviously it’s not quite that simple. Given the majority of people who decide to dabble in real estate, will never really move beyond that initial dabble phase, into building the empire they dream will provide an early retirement and financial freedom.
ATO Statistics suggest that of those who do invest in housing, less than 10 per cent will ever own 6 or more income producing properties. The majority – about 90 per cent in fact – never make it beyond one or two; hardly the makings of an empire.
So what differentiates the minority of successful property investors, from the majority who, well…never do much more than dabble?
Some would suggest it’s all in the mind.
A 2014 paper on the relationship between mindset and the success of College students in the United States, found that the beliefs we have about ourselves – our “self theories” – create different psychological worlds that influence how we think, feel and behave.
If a student believed they could never get any “smarter” and their intelligence level was unchangeable, they felt as though they would always fail. They believed their intelligence was not something within their control.
In turn, this perceived inability to “become smarter” effected their motivation and drive to exert academic effort.
Researches speculated that the students could have been subconsciously self sabotaging their learning experience; essentially “sealing their own fate”, based on what they believed to be true.
Likewise, those students who believed intelligence can be cultivated and improved through applied effort, were more motivated to take action.
This latter group, who were said to have a “growth” mindset – were not derailed on their path to success by perceived “failure”. They simply saw it as part of the journey. An evolutionary step if you like.
Whereas those with a “fixed” mindset, who didn’t feel they had much hope of improvement, irrespective of their actions, would fall down at the slightest hint of “failure”; any type of poor performance leading to low self evaluation and low self worth.
Studies like this and many others, along with what some might call “woo woo” spiritual type notions, suggest our mind can literally impact our matter.
In other words, what we experience and “manifest” as our experience of reality (follow me down this rabbit hole for a moment!) is largely shaped by how we think about our life. What we believe to be true for us.
When you consider the success some of the “gurus” out there who subscribe to these mindset theories have achieved, the likes of Tony Robbins for instance, this perspective on how we create our reality…and success, is not quite as laughable.
Although I’m sure Tony’s laughing all the way to the bank!
With this in mind the question then becomes, how do we create a mindset programmed to believe in our capacity for success and wealth – a “growth” investment mindset? Versus a “fixed” mindset that sees us give up on our lofty goals at the first sign of failure, never making it beyond those one or two properties?
Here are 5 tips that those who have achieved their dreams (think our mate Tony!) might suggest are a good starting point…
1.What is your Why?
When we’re doing something for the sake of it, and don’t have a lot of “skin in the game”, it’s easy to give up at the first sign of perceived failure.
This is especially true when you have little to no emotional investment in what it is you’re striving to achieve or attain.
Why do you want to invest in property in the first place? It’s not just about the money! The sums! The money and the sums are merely a means to the desired outcome, right?
It is this desire that fuels determination and drive…the will to succeed no matter what, and overcome any challenges or obstacles that might crop up.
When you close your eyes and imagine what your life looks like as a property investment mogul…when you can “feel” into that vision; just by seeing it in your mind’s eye you experience the joy of it, the freedom of it, ahhhh…the richness of it…
That is your Why! And that is what you need to connect to at those times when you feel challenged, or think you’ve made a mistake.
2. Keep your goals in sight.
Attached to that Why are your goals. Those tangible things you plan to be, have and Do when you attain that level of success that your Why feels like! Make sense?
So, what are you doing in that vision of your “Why”, that makes you feel so Gosh darn good?
Travelling? Spending more time with your family? Working less? Having more adventures? Perhaps giving back to the community?
What will keep your boat afloat when the seas of real estate get a little rocky and uncertain?
Plan, dream and connect with those goals, just as you connect with your Why to stay on the path to success.
3. Don’t sweat the small stuff.
Pretty self explanatory, but there’s no way you’re going to inhabit a “growth” mindset if you’re constantly nit picking and worrying over all the little details. That’s where the Devil is remember? And that devil will be your undoing as an investor.
In particular, try not to pay too much attention to what’s being reported in the media and the various conflicting “expert” views around the “property markets”.
Remember, you are not buying “the markets”, you are buying assets. Individual ones. Ones you’ve specifically researched.
Ultimately, what the markets are doing is neither here nor there to those with a growth mindset. They’ll thrive irrespective of what’s going on around them.
4. Make your journey meaningful.
This points back to your Why and Goals. Making money for the sake of making money is empty ambition.
The theory of, “He who dies with the most, wins!”, does not make for the most meaningful experience of life.
Countless people will jump into property because they think it’s a surefire path to financial freedom. You can’t really blame them, given all the “fixer upper”, “faster flipper” shows on TV these days that make it look soooo easy!
BUT…there’s always a but!…If you don’t have a plan as to how you intend to enjoy that wealth with the people around you, and make your life richer for it, not just your bank balance, chances are you’ll veer off track when the next shiny “money making” carrot is dangled in front of you.
People with a growth mindset have laser focus. They believe in what they’re doing and the journey they’re on. That’s why they become like the proverbial dog with a bone!
5. Celebrate your success!
Finally, take some time out to celebrate your success and really enjoy the journey! It is said that the journey is the destination.
When you think about it, where are we all in such a hurry to get to anyway?
As you take the steps and find success along your investment adventure, acknowledge and celebrate those moments!
Humans have an innate need for validation. Hence, we’re always looking for it! Even athletes who work themselves to the bone get a medal at the end…some form of validation for their efforts.
Be your own best champion, and you’ll go a long way to inhabiting that growth mindset of success!