Where do I even start? Real Estate Investor MINDSET! Part I

Your first steps on your real estate investing journey are going to depend heavily on where you're at in life right now. Decisions are going to have a very different effect for a single parent with 2 kids, than they will for a single college graduate with no responsibilities yet, am I right??

So with that said, there are a few things you have to take stock of from the outset. I'm sure you've heard it all before, but I'm going to say it again (even LOUDER for the people in the back!) Your MINDSET IS EVERYTHING in this game. If you can't get over certain mental blocks, success is always going to be on the other side of that wall.

So think for a second if you're really ready for what lies ahead? The short answer is yes! Otherwise you wouldn't be reading this. The long answer, and the truth is, you'll probably need to make some changes to really get started though. Successful investing in real estate is a commitment. A time commitment, a financial commitment, and overall a life-changing commitment. But once you commit, and really drive at your goals, the win will be well worth the effort.

CHANGING YOUR MINDSET

So how does one actually effectively change their mindset? That's no easy task, but I can tell you how I did it, and give you some simple ways to change the way you look at things. First and foremost, you need to determine how important your real estate dreams are. How important is your financial freedom to you? How important is it that you have assets that support your lifestyle so you don't have to continuously punch a clock?? It's going to come down to making the decision that your future and your freedom are some of the more important things in your life.

Let me give you a term that has had a profound impact on me: "Opportunity Cost"

By definition, opportunity cost is "the loss of potential gain from other alternatives when one alternative is chosen"

To put it very simply, and how I applied it to my life, when you choose to do one thing over something else, you lose the benefit of the thing not chosen. So you need to ask yourself, does the benefit of the thing I'm choosing outweigh the benefit of the other? More often than not, if you ask yourself that question before you make a decision, you'll likely rethink the decision.

I'll give you an example. I'm a huge traveler, love it, feels like I can't live without being out of the country a few times a year, BUT! every time I booked a flight and hotel, I was giving up funds that I could have used toward an investment. So the opportunity cost of paying for a trip out of the country for the family, is not being able to use that money toward acquiring another asset.

Now don't get me wrong, I'm not saying don't live your life and don't do the things you enjoy. You gotta live your life! You also need to make the less fun decision sometimes, so you can set yourself up to enjoy your freedom later.

Another theme that really helped me in changing my mindset over the years came from a quote that I read. The quote said,

"Every decision you make is either building an empire... or destroying it"

Let that sink in for a minute, and really comprehend what's being said here. This applies to your life at almost any phase, and ties into the concept of opportunity cost as well. Every decision comes with a choice, and that choice has lasting effects in your life, whether you realize it in that moment or not. Sometimes even the smallest, apparently insignificant, decisions end up having the most effect.

Applying this to real life, let's consider my travel issue, since that's the easiest thing for me to pick at. I was faced with this very dilemma not too long ago. I was planning a quick weekend trip to Mexico, just to get away for a few days. In the midst of planning the trip, I was invited to a real estate networking conference in Palm Springs. At that point I was faced with a decision. Granted this is one of those more obvious empire building or breaking scenarios, but stick with me.

I was faced with a choice, continue booking Mexico and go on living my best life, with every intention of drinking and laying out on the beach for a few days. Or take my behind to the event in Palm Springs and seek out some connections that could potentially be beneficial to my real estate aspirations and my business.

... I won't lie to you...

... I went to Mexico...

But I went on the leisure trip over the business trip knowing full well what the cost was. I know for a fact I destroyed several potential connections and likely burned a bridge for a future invitation to that event, and the opportunity to meet people that cold have been key contributors to my brand. So in essence, I potentially destroyed what could have been that portion of my empire.

But let's take a minute and look at it from another perspective.

I absolutely destroyed a portion of my empire by making that decision, but I built on another portion of it by doing what I did. My family is my support system, and by going to Mexico, I was fostering the connection with my wife and daughter, who are primary members in my empire. That was justification enough for me.

Apply that same thought process to something more simple, and the decisions take a whole different turn. Let's say you were in the process of looking to buy your first property and there is an open house at a property that you're considering. At the same time of the open house, your friends reach out and tell you they're going to an event that's supposed to be a great time. There is a blatant opportunity to build or destroy here, and this is the type of decision you'll be faced with many times.

Let's say you choose to bypass the event, you go to the open house and you end up hitting it off with the agent. You get pre-qualified and before you know it you're in escrow on the place and your just a few weeks away from owning it; Empire building.

Now let's say you go to the event instead of checking out the house, you have a great time with your friends, and you come home that evening in a great mood. The next day you check on the house and there's been an offer accepted on it, and you're out; Empire damaging. (And yes it can happen that fast)

Now, these are extreme cases, and I'm using them to illustrate a point. The point is, you need to change the way you view scenarios like this if you're going to be successful. If you don't put your aspirations at the front of your mind then they'll always take a back seat to your leisure activities. You let that happen enough and suddenly you've lost several years and haven't accomplished anything on your investment plan.

The fact of the matter is, every time you choose something else over your real estate goals, you push your real estate dreams further away. So fixing your mindset and really focusing on getting your goals top of mind is your first step.