Over the last week I have talked to a lot of real estate investors or people thinking about investing in real estate. I am starting up a new coaching program and part of the vetting process is a quick call. While talking to people I have learned that most of you have no idea what you want or what it would mean to be a successful real estate investor. I love to ask people what they would want their life to look like in one year and most people have a really hard time answering. Their answers are so vague that I can tell they have not thought through what they really want to happen to them. If you want to be successful you have to know what success is to you.
Why is it important to know what you want in life?
If you are someone who does not think about the future in great detail, do not feel bad. Most people do not give the future much thought, except for broad general ideas about success and money. For example:
- I want to be a successful real estate investor
- I want to own properties
- I want to have financial freedom
- I want to be able to retire early
- I want to have the lifestyle I always wanted
On the surface these look like some great aspirations to have, but they really mean nothing. Broad, general statements like these can mean much different things to different people. A successful real estate investor to one person might mean owning a house you live in that goes up in value over 30 years and eventually the mortgage gets paid off. Being a success could also could mean you want to buy 100 rentals in the next ten years like me. If you want to own an investment property do you want a flip or a rental? Do you want to own a 50 unit apartment building or a mobile home? What does financial freedom mean? What does retire early mean? What does your perfect lifestyle entail? If you can’t answer these questions with detail, you have not thought about your future enough.
Most have people do not think about their future in detail and that is why most people are not that successful. If you want to be different, to be better than average, you will have to do things different from most people.
To learn how to use mindset and attitude to make yourself more successful, check out: How to Change Your Mindset to Achieve Huge Success: Why your attitude and daily habits have more to do with making more money and having more freedom than anything else. A 200 page book available as an eBook or paperback on Amazon.
Why do you need to know what you want your future to be like to be successful?
When you think about success what does it mean to you? Is it having a Lamborghini or having any kind of new car some day? Is success making $100,000 a year or making one million dollars a year? Is success being able to travel anywhere in the world at anytime without your lifestyle or work being affected or is it being able to pay for your kids college one day?
Everyone has a different idea of what success is. Somebody might think living off $10,000 a year without debt is successful, but many would not. You have to make sure you know what success means to you, because you don’t want to find yourself with a $10,000 a year job if your idea of success is owning a beach house free and clear.
If you know exactly what you want in life, it gives you a much better chance to get it. Our subconscious works in amazing ways and I talk much more about that here. When you know what you want you can plan how to get it and your subconscious will help you along the way. If you know exactly what success means to you, you can work backwards to discover how to be that success.
What would your life be like in one year?
If you want to help yourself succeed you need a clear picture of success, but you also need to know how you will be a success. Making one million dollars a year is a great goal and idea of what success would mean. You also must have some kind of idea of how you would reach that goal. Would you do for work? Would you own a business? Would you be a real estate agent? Would you flip houses?
Once you figure out what you will do, you need to know how much of what you need to do. If you want to be a real estate agent making $100,000 a year, you need to know how many houses you have to sell and at what price they would have to sell at to reach that goal. How many flips would you have to sell to make $200,000 a year? How many rental properties would you need to own to reach your cash flow goals?
If one year from now you can’t imagine hitting your idea of what success is, figure out when you could be a success. If it is five years from now, then what do you must have accomplished in one year to be on track to be a success in five years. Do you have to own one property that cash flow $400 a month and was bought 20 percent below market? What about your work situation and your family situation? You need to create the entire picture of what your life will be like in your head.
How do you become a success after you define success?
One of the hardest parts about being successful is knowing what success means to you. Most people don’t want to define it, because they are scared they won’t achieve it. Once you can get past your fears and define what you want, you have to remind yourself what you want. Almost everyone sets goals when they make new years resolutions and almost everyone forgets about those goals a couple of weeks later. If you think about your goals or what success means to you once, it does no good. You have to think about what success would mean to you all the time. Every day you should be reminding yourself what you want and how you are going to get it.
After you get it in your head what success would be for you, write it down. Better yet write a story about how your life would be and read that story every day. Imagine it being real and how you are going to get it.
What if you want to take things slow and just educate yourself?
Education is extremely important in everything that you do. Education teaches us the right way to do things and the wrong way to do things, but education is not a goal. I don’t know of anyone who would think being educated is a success. being educated is a means to become a success, but using that education is what will make you successful.
If you have goal to learn about rental properties change it. Make your goal something substantial and measurable, because you can’t measure how educated you are. Maybe the reason you are looking at rental properties is you want to build $10,000 a month in passive income. Your goal should not be to educate yourself about rentals, your goal should be to decide if rental properties are the right way to build cash flow in the next month. You have given yourself time to learn about rentals and a timeline to decide if they are the right avenue or not.
Maybe you know you want to invest in rental properties, but you don’t think you know enough yet. Again your goal should not be to learn about rentals. Your goal should be to buy one rental property in the next year or six months. You know you want to buy a rental, you know you need to learn about them. Give yourself a deadline and a specific goal and the education part will work itself out.
If you are interested in rental property investment: The Complete Blueprint to Successful Real Estate Investing is a great program.
Too many people are afraid to define success or don’t want to take the time to define it. If you don’t know what you want, it will be virtually impossible to get it. Think about what you want your life to look like in one year, be specific and write it down. Next figure out how you are going to get there and then remind yourself every day of what you want and how you will do it.