Real estate investing is a fantastic path to generate long-term wealth if your head is in the right place to tackle all the obstacles along the way. Success is never easy but is always possible with the right real estate investing mindset.
Find your way to wealth with the help of these four tips that will shape your real estate investing mindset:
The Most Successful Have Partners – When getting into real estate, especially as an investor putting your money on the line for the first time, there is no shame in taking advice from people who’ve been there before. Do your research, seek out networking events and other similar groups of like-minded people and pick their brains. Entering into a partnership may not be a bad idea either, wherein the more experienced players provide the bulk of capital and expertise whereas you aid in completing a lot of the grunt work. It isn’t necessarily glamorous, but it can provide an excellent opportunity to learn and gain experience while making money at the same time when the profits finally come. Long story short – you can always learn from someone wise than yourself in the beginning, especially if they’ve already weathered hardships you aren’t even aware of yet.
Building Wealth Takes Time – There are many ways to generate wealth in real estate, whether you choose to act as an investor or become an agent. No matter the pathway, it takes time to accumulate real wealth in this business. Don’t approach it as a get rich quick scheme or else you will indeed get burned with nothing to show for your efforts. Most investors need to spend months conducting research and additional tasks – understanding their market(s) of interest and related variables, establishing clientele where necessary, overseeing renovations on existing properties, etc., before the money begins flowing in. You will also make mistakes along the way; this fact is entirely natural, even if it costs you money. However, over time you will master the specific important areas and develop the patience required to see real wealth develop and grow. Remember that this is a process and, above all else, processes take time.
Approach Real Estate as a Startup – Many novice investors begin their journey while still keeping a day job at first. As a result, investing is often viewed as more of a side project or hobby than a full-on enterprise. However, once you begin to see it generate income, the equation changes dramatically. That is why it is best to shape your mindset in the very beginning properly; don’t think of your investing as a hobby but rather a startup, not unlike Apple or Facebook in their inceptions. What this means is thinking through a realistic business plan, looking into the tax ramifications, conducting research based on how you wish to invest, generating ideas to keep pushing forward, and countless hours of work. If you think of your new venture as a startup rather than a hobby, then naturally you will attack it with the focus necessary to make it work as you wish.
Make Sure Your Business is Properly Structured – The difference between being good and great often lies in how you handle the details; this concept directly translates to how you handle your real estate business when it comes to legal and tax matters. Two questions to ask are 1. What are my goals for this business? and 2. How do I set it up to achieve those goals to the best possible degree? If making as much money as possible while paying the least possible tax is a goal, then you need to make sure your business is legally structured to do that.
Thankfully, Anderson Advisors’ team of lawyers, CPAs, and advisors understand exactly how to approach this task because we have within our ranks many dedicated real estate investors. We know the ins and outs of this area of law because we engage in it every single day, and can bring that knowledge to bear for your ventures. Everyone’s business goals are different as are the means to achieve them; that is why we can help you figure out the best pathway for your goals and put it into action. All you need to do is schedule a FREE 30-minute strategy session with one of our team members today.
By reading this article, you have already demonstrated your serious interest in becoming financially successful through real estate. Let us help you complete the next steps and celebrate with you when you’ve achieved your goals and dreams.