There are many different traits which make up the mentality of successful property investors. It is not just the ability to research and find the best properties, there is so much more to property investment. So, do your personal traits bode well for your future as a property investor? Are you flexible when looking at ideas, comments and suggestions from others?
Focus is vital
You will find some successful property investors are able to juggle many different deals at the same time but behind the scenes you may find they have a team of people helping them. One of the best traits for any investor is to remain focused with a specific target in mind. Those who take on far too many potential opportunities are likely to miss out on some potentially lucrative investments or simply make mistakes. Stay focused on individual deals, keep a target in mind and do not let your thoughts wander onto the next deal until the current one is finished.
Leaders and followers
On the surface you may expect successful property investors to be leaders 100% of the time but this is not the case. Sometimes it can be difficult if an investor has a large ego and wants to lead all of the time because the truth is that sometimes it is good to follow ideas and suggestions from others – who may have specific knowledge or expertise in areas where you are lacking. Don’t forget, it is still possible to make good money in property investment by following others!
Are you the type of investor who will admit defeat if you got an investment wrong or the underlying situation changed for the worse? Or are you one of the stubborn property investors who find it difficult to admit defeat instead ploughing on relentlessly while their losses mount up?
There is nothing wrong with cutting your losses, indeed cutting your losses is a vital part of any investor psyche, because at the end of the day you will make mistakes, you will call markets incorrectly but cutting your losses allows you to live to fight another day.
Run your winners
While cutting your losses is a vital part of any investor psyche the ability to run your winners is just as important. While you obviously need to look at your finances on a cumulative basis you also need to consider individual property assets in their own right. The problem is when times get hard it is tempting to cut your winners and those with an inability to admit defeat may end up running their losers.
They will never be a situation where it is wrong to take a profit but do not take a profit to offset losses in other parts of your portfolio. Consider this, looking at individual property assets would you buy them today if you did not already hold them? If the answer is yes, or on the flipside you would not sell them, then why would you consider cutting your winners? It is just as difficult to run your winners as it is to cut your losers but if you want to be successful in the world of property investment you need to learn these particular traits as soon as possible.