Real estate investing can be an incredibly lucrative way to build wealth, but it requires the right mindset to be successful.
Having the right mindset means being able to identify opportunities, take calculated risks, and persist through setbacks. There are several key components I've relied on to create a successful real estate investing mindset, here are some practical tips to help you develop yours.
Believe in Yourself
The first step to developing a successful real estate investing mindset is to believe in yourself.
This means having confidence in your abilities to learn, grow, and succeed. Many people who fail in real estate investing do so because they lack confidence in their own abilities. They are afraid to take risks and hesitant to make decisions because they don't believe in themselves.
To build your confidence, start by educating yourself about real estate investing. Read books, listen to podcasts (like our own REady2Scale), attend seminars, and talk to successful real estate investors. Surround yourself with people who have a positive mindset and can provide support and guidance.
Another way to build confidence is to partner with experienced operators. Jumping into investments on your own is one of the most common mistakes first time investors can make. Especially when you're just starting out, partner with someone you trust. n experienced sponsors can act as a mentor and guide you through the unknown.
This will help you gain experience and build confidence in your abilities.
Be Willing to Take Risks
Real estate investing involves taking calculated risks. While it's important to be cautious and do your due diligence, you also need to be willing to take risks if you want to succeed. This means being open to new ideas and opportunities, and not being afraid to try something new.
One of the keys to taking risks is to have a plan in place. Before making any investment, have a clear understanding of your goals, your strategy, what markets you're targeting and your exit plan. This will help you make informed decisions and minimize your risks.
Another way to manage risks is to diversify your investments. Instead of putting all your money into one property, consider investing in multiple properties, or invest through real estate syndication. This can help spread out your risks and protect your investments. (Shameless plug - to inquire about investing with Blue Lake Capital, just click here to fill our our new investor form & our Investor Relations team will be in touch.)
Real estate investing is not a get-rich-quick scheme. It takes time, effort, and persistence to build wealth through real estate investing. You will encounter setbacks and obstacles along the way, but it's important to stay focused and keep moving forward.
One way to stay persistent is to set clear goals for yourself. Write down your goals and create a plan to achieve them. Break your goals down into smaller, manageable steps and track your progress along the way. Celebrate your successes and learn from your failures.
Another way to stay persistent is to surround yourself with like-minded people. Join a real estate investing club or attend networking events to meet other investors who share your goals and mindset. These people can provide support and motivation when you need it most.
Real estate investing can be overwhelming, with countless options and strategies to choose from. It's important to stay focused on your goals and your strategy to avoid getting distracted or overwhelmed.
One way to stay focused is to create a checklist or a set of criteria for evaluating potential investments. This can help you stay objective and avoid making emotional decisions. Stick to your criteria and don't deviate from your strategy unless you have a good reason to do so.
Another way to stay focused is to prioritize your time and energy. Real estate investing can be time-consuming, so it's important to be efficient with your time. Focus on the tasks that are most important and delegate or outsource tasks that are less critical. This can help you stay on track and avoid burnout.
Real estate investing, like any other business venture, involves risk and uncertainty. You'll encounter failures and setbacks along the way, but it's important to embrace these experiences as opportunities for growth and learning.
One way to embrace failure is to reframe how you think about it. Many people view failure as a negative thing but, if you're setting big enough goals for yourself, it will be an inevitable (and valuable) part of the learning process. Failure can be an opportunity to learn from your mistakes, adjust your strategy, and come back stronger.
One of the biggest reasons for failure that we see, especially with newer investors, is due the lack of due diligence. This involves doing your homework and thoroughly researching a property before making an investment. By using failure as an opportunity to improve your due diligence, you can avoid making costly mistakes in the future.
Stay Positive & Don't Give Up
It’s easy to get discouraged and lose motivation when you experience a failure. However, it’s important to stay positive and keep a growth mindset. Focus on the things you’ve learned from the failure and how you can use that knowledge to improve your future investments. Stay optimistic and believe in yourself and your ability to succeed.
One of the biggest mistakes you can make as a real estate investor is to give up after experiencing a failure. Instead, you should use the experience as motivation to keep going. Remember that many successful real estate investors have experienced failures along the way. The key is to learn from those failures and use that knowledge to make better decisions in the future.
Develop a long-term mindset and focus on building sustainable wealth through real estate investing.
Continuously educate yourself and stay up-to-date with the latest trends and best practices in the real estate industry.
Partner with an experienced sponsor you can trust.
Embrace a growth mindset and view failure as an opportunity to learn and improve.
Real estate investing is a risky business. It can be full of challenges, uncertainties, and setbacks, but if you can create the right mindset and develop strong relationships you'll also experience incredible success. It will help you build wealth, create passive income and give you the freedom to live the life you want.
The best time to develop that mindset is now. There is so much negative news it's hard to stay positive, but these conditions won't last forever and these are the kind of environments where generational wealth is made. (That's why we're keeping our deal flow active.)
If you have a strong plan and confidence you can move and take advantage of opportunities while others are sitting on the sideline.
As always, Be Bold, Be Great and Keep Pushing Forward!
Invest with Blue Lake Capital
If you are an accredited investor interested in learning more about passively investing in multifamily properties, click here to complete our investor form and schedule a call with our Investor Relations team.
About Ellie Perlman
Ellie Perlman is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.
A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence throughout the course of all acquisitions and asset management. This advanced technology enables the company to produce accurate and data-driven forecasting for all assets on a market, property, and even tenant basis. In doing so, Blue Lake is able to lead commercial investments with the full capabilities of today’s technology.
Ellie is the founding host of REady2Scale, a podcast that highlights the assets, processes, and strategies for the multiple approaches to successful real estate investing.
She started her career as a commercial real estate lawyer, leading real estate transactions for one of Israel’s leading development companies. Later, as a property manager for Israel’s largest energy company, she oversaw properties worth over $100MM. Additionally, Ellie is an experienced entrepreneur who helped build and scale companies by improving their business operations.
Ellie holds a Masters in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can read more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.