Free Articles  >>  Real Estate >>  Page 348  >> 

The Psychology Of Real Estate Investing

In the 1980s, if you were going to go on a diet, magazines would tell you to "think thin." They never actually explained what that meant, but everyone knew they were supposed to do it. Adopt the psychology of the thin person, whatever that was. It follows that, in order to become rich, you should be able to accomplish that by adopting the psychology of the rich, right? Actually, it does. Specifically, you should adopt the mindset of the successful real estate investor.

Successful real estate investors are opportunists. They always have their antennae up and ready. They put themselves in the way of information. They "live the life" of the real estate investor, so to speak. And because of all this, they notice things.

Ken McElroy, author of "The ABCs of Real Estate Investing," which is part of the Rich Dad series, says it's all about patterns. If you look at enough properties, study enough areas, talk to enough people, he said, you will start to see these patterns. Then things will start to happen. You may start to seem lucky. And, McElroy says, it may be luck, but it is a sort of luck, that comes from being prepared.

Remember: "Fortune favors the prepared mind." Opportunity is all around us, but if we are blind to it, it will be as though it doesn't exist. The prepared mind recognizes opportunity.

McElroy emphasizes over and over again that being successful in real estate is a process. It isn't just something that happens one day, as in one day we're suddenly successful. It is something that you do every day. Eventually things begin to happen for you.

Someone who is successful focuses on doing a little at a time, on learning this or that thing, or making this particular deal. It's a "walk before you can crawl" proposition.

For instance, McElroy says, if you have found a good deal, you can get funding for it because other people will want a piece of the action. It isn't about negotiation skills necessarily, he said. Of course, those skills can get you an even better deal at times, but you shouldn't fret over whether you are good at the negotiation table. Just look for good deals.

Although they are always evaluating risk, always aware of it, successful investors are not frightened away by it. They determine whether the risk seems reasonable. If the numbers add up, McElroy says, then it is a good deal. If it is a good deal, the savvy investor goes for it.


People who don't know how to properly evaluate risk may think everything is too risky. They assume, for instance, that a larger deal may be too risky for a beginner to deal with. They assume that because they think the investor is sinking a lot of personal cash into it when, in truth, a larger deal stands to make a larger sum for the participants. Therefore you may be able to get more backers for a deal like that. In the end, you may put up less personal money than you would have on a smaller deal.

Real estate investment is just like anything else you want to learn how to do. Well, for one thing, you have to learn how to do it. And you learn by doing. Get out there and look at properties. Visit cities as though you were intending to buy. Go online and read about areas. See what other people have to say about the real estate in a particular area. Get to know people. Before long, you will know enough to begin thinking about actually making a move. You don't have to have a wad of cash in hand before you start playing the game. Just get out there and enjoy yourself. The rest will come.
About Author Alex Anderson :

(TEXT Bi-Line:) Investment Property Specialist Alex Anderson Has 3 Websites - One For All Real Estate Investors <a href="" target="_blank"></a> - Another For Minnesota Investors: <a href="" target="_blank"></a> - And One For Minnesota Real Estate: <a href="http://www.greatminnesotarealestate" target="_blank">http://www.greatminnesotarealestate</a>.

Article Source:
Article Url:

Article Added on Wednesday, May 9, 2007
Other Articles by Alex Anderson

Why Real Estate Investing Is For Skeptics
According to the American Heritage Dictionary, a skeptic can be defined as, one who instinctively or habitually doubts, questions, or disagrees with assertions or generally accepted conclusions. People generally use a derisive tone to call someone who questions things a skeptic, because it is easier for them to bully someone out of having a scientific approach to things, than to back up their own assertions. However, being a skeptic is not a bad thing, especially when it comes to money....

Why Real Estate Investing Is A Process
One thing that many people do not realize is that learning to invest in real estate is a process. They don't realize that because they often only see the end result – a prosperous person with a Midas Touch, or a person who always finds themselves in an avalanche of great deals. They think the person is simply lucky. Someone who has truly begun their own real estate journey knows, however, that these successful investors are utilizing a skill they have developed over time. Perhaps they have...

Anyone Can Learn To Win At The Real Estate Game
People enjoy being mystified. Art mystifies them, so they ooh and ahh and congratulate the artist on his or her natural talent. They see science as a mystery, so they aren't even interested in what it is that scientists are actually doing. Investment in real estate mystifies them, and so they assume it's just a gamble and that certain people are either lucky, or that they must have been born with a gift . The fact is that succeeding in these disciplines and others is just a matter of...

Investment Property Is Now A Good Time To Buy
The timing is always right for investing in real estate. As with any investment, you need to be careful of certain things … it is never a question of timing, but a question of location, mortgage affordability and maintenance. * Location - the number of like properties in the area, economy of the area, one huge employer or many small employers. * Cash flow - will more money be going out than coming in? * Managed professionally – maintenance headaches belong to someone trained to handle them...

How You Can Invest In Real Estate
Robert Kiyosaki, author of the Rich Dad book series, has said more than once that you don't have to have money to make money. In “Cash Flow Quadrant” however, he reveals how much money he paid for his first investment condo. What if you want to buy a condo but you don't have a few thousand spare dollars lying around to make it happen? You can still make your purchase. The trick is, you just have to think about things a little bit differently. If you have not seen the movie “Schindler's...

Avoid Rookie Real Estate Investing Mistakes
When Robert Kiyosaki, author of the Rich Dad book series, bought his first property he was, of course, ecstatic. Finally, he had done it. He had taken that first important step in truly building his wealth that the man he called his “rich dad” so often touted—investing. He knew it was very important to become an investor and make his money work for him. The trouble was, the property he purchased was a losing deal for him. He didn't see this at first, thanks to a smooth-talking real estate...

Real Estate Investing The Pipeline To Your Financial Freedom
If you need to get water from one place to another, it seems to be common sense that you would build a pipeline to get the most water for the least amount of work, using technology. But the reality is, most people are taught to overlook the obvious in favor of the most familiar approach. Consider this story, told by Robert Kiyosaki in his book, “Cash Flow Quadrant.” There once was a village that had to wait for the rain in order to have water. This was a major problem for the village, and so...

Buying Real Estate Investments Myths Exploded
Myth 1: It Is Too Late To Invest. I’m Too Old To Wait For An Income. Fact: It is never too late. The focus should be on positive cash flow and not on the mortgage pay off date. It is easy to own several rental properties that will pay you enough to not only pay the mortgage, but also give you a nice income. Myth 2: I Can’t Afford To Buy Property Now. I’ll Wait Until My House Is Paid For, Then I’ll Look Into It. Fact: Your house has equity in it already. You can use that equity as a down...

When You Think Real Estate Think Rich
What is the difference between people who get rich and people who don't? It is a very simple question that many people simply forget to ask. The first time you are truly confronted with this question, you will probably reach for an easy answer, such as, “Being born into a rich family” or “Getting lucky with the lotto” or even “Having a good career that pays a lot of money.” And you might indeed be considered lucky if any of those things had happened to you. The bad news for those lucky...

Investment Property Is Good Debt
There is a lot of buzz on the web about Good Debt vs Bad Debt. The fact is, most of the baby boomers learned money matters from parents who grew up during the Great Depression. Since that time, many things have changed such as the Federal Reserve Board, insurance for deposits, checks and balances on banking procedures and since the 80s, checks and balances on Savings and Loans businesses. If you talk to a banker, you will hear one side, if you talk to a real estate investor, you will hear...

Publishers / Webmasters
Article ID: 60884
DELINK URL from Authors Bio
REMOVE Article
Tell A Friend
Leave A Comment!
Download this article in PDF
Report Article!
Search through all the articles:

264 Users Online!!
Related Articles:
Latest Articles:
Real Estate >> Top 50 Articles on Real Estate
Category - >
Advertising Advice Affiliate Programs Automobiles
Be Your Own Mentor Careers Communication Consumers
CopyWriting Crime Domain Names DoT com Entrepreneur Corner
Ebooks Ecommerce Education Email
Entertainment Environment Family Finance And Business
Food & Drink Gardening Health & Fitness Hobbies
Home Business Home Improvement Humour House Holds
Internet And Computers Kiddos and Teens Legal Matters Mail Order
Management Marketing Marriage MetaPhysical
Motivational MultiMedia Multi Level Marketing NewsLetters
Pets Psychology Religion Parenting
Politics Sales Science Search Engine Optimization
Site Promotion Sports Technology Travel
Web Development Web Hosting WeightLoss Women's Corner
Writing Miscellaneous Articles Real Estate Arts And Crafts

Disclaimer: The information presented and opinions expressed in the articles are those of the authors
and do not necessarily represent the views of and/or its owners.

Copyright © AwareINDIA. All rights reserved || Privacy Policy || Terms Of Use || Author Guidelines || Free Articles
FAQs Link To Us || Submit An Article || Free Downloads|| Contact Us || Site Map  || Advertise with Us ||
Click here for Special webhosting packages for visitors of this website only!
Vastu Shastra

Business eMail Hosting Provided By AwareIndia

Company IDS