Over the years, having worked with hundreds of people looking for properties, I have come to understand what makes a successful investor. I’ve found that there are common characteristics that you find in most investors who have put together profitable property portfolios and reaped generous rewards.
1. THEY ARE TEAM PLAYERS
First and foremost, successful investors realise that two (or three or four) heads are better than one. They are keen to enlist professional help to utilise specialist skills that they themselves lack. Many investors are busy professionals who are highly skilled at their profession but not qualified in the wide range of knowledge necessary to build and manage a property portfolio. They are also often time-poor, and it makes sense to seek someone else’s help to complete tasks quickly and efficiently rather than struggle through, learning as you go. Smart investors pick their team carefully and allow each member to support them on their investment journey.
2. THEY MAKE A DECISION AND THEY MOVE ON
In property investing, it’s easy to spend a lot of time and research finding a suitable investment. After all, it is an exciting part of property investment! However, there is a time when a decision needs to be made, and successful investors know when that time is. They are confident in their actions and don’t entertain any doubt in their decisions. Once the deal is done, they move on to the next phase of their investment journey.
3. THEY HAVE A VISION AND GOALS THAT GUIDE THEM
Successful investors will have set a strategy at the outset of their property journey. They have a long-term vision and their goals are stepping stones to get them to this destination. They review their goals regularly and re-set them when necessary, but they never lose sight of the plan. They also do what they say they will, and when they say they will do it. When I see my most successful clients setting a goal to buy, say, two investment properties in a 12-month period, I know they will do it within this timeframe. They don’t procrastinate or allow excuses to get in the way.
4. MONEY ISN’T EVERYTHING
I’ve never met a successful investor for whom money was the only thing. They invest in property for financial security, sure, but also for lifestyle and the freedom that this brings. The whole idea is to eventually replace active income with passive income, and this takes time. They know how to pace themselves and strike a good balance between investing and still enjoying life in the meantime! This is also why striking the right balance between capital growth and cash flow is key to a long-term plan.
5. THEY ARE COMFORTABLE WITH NUMBERS
Finally, successful investors go by the ‘numbers’. This covers a couple of things. Firstly, they are good financial managers in all aspects of their life (business, investing and personal). They understand the difference between good debt and bad debt, discretionary spending from essential spending, etc. They can budget, forecast cash flow and will have a buffer in case things don’t go according to plan.
Secondly, successful investors run the numbers before they make a decision, leaving emotion out of it. If the numbers don’t stack up and the investment does not make good business sense, then they pass on it. Even if it really is a 'cute' property.
These traits that I’ve discussed above can be learned and developed. If you don’t ‘naturally’ think and act in these ways, then a good property investment adviser and support network will keep you on track!
Come see Philippe and his team at the biggest property event of the year: The Property Buyer Expo in Sydney 30th October to 1st November. Click here to claim your free ticket to the event, and be sure not to miss Philippe's daily seminar, "How to set up a strategy that works for you!"
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property