Ever heard of a youngster who just graduated from college who owns a few properties that gives him good rental and generated him a passive income? OR a single mum who struggled financially to care for her children but created her own wealth and property portfolio worth more than RM10 million in less than 5 years?
Both of them probably had certain unfair advantages compared to most of the people out there, but if they can be successful investor, so can you! The question is, what is the secret they have that made them successful?
Let me reveal some of the secrets by looking into these 5 key points that made them a successful investor:
1. The burning desire
Let’s recall the last time you won in a competition, whether it’s a game or sport. How did you win it? Is it because you are good at it naturally or you trained hard day and night? For most of the winners out there, I believe it’s the latter. I bet it was your passion towards the game that made you train tirelessly, knowing that you will be the top of everyone else! There was this burning desire, and it gave you that drive and determination telling yourself “I WILL WIN THIS”. It was that particular state that brought most winners, champions of a particular sport or a successful investor to be where they are. Having the burning desire plays an important role towards success, and when the desire is strong enough, anything is possible.
2. Have an exit plan
Many investors usually have great entry plans before buying into a property. They can calculate the figures, get the right people to leverage on, know the exact profit they will get when they buy the property. But what separates successful investors from normal investors is, their exit plan.
Sure it feels great to get huge discounts or cash backs from new development properties but sometimes we are overshadowed by it and do not look deeper into what will the effect be in the long run. Sometimes no matter how great the discounts or cash backs may be, we need to ask ourselves these question:
- Can I cover the monthly repayment due to higher purchasing price with the cash back?
- How long can I hold on to the new property before selling it off?
- If I am buying the property for rental returns, can it cover my monthly loans?
Many normal investors miss asking these questions, resulting in negative cashflow properties. Successful investors will never let this happen; they plan all their strategies before investing, during investment, and when disposing off their investment.
3. Your relationship with money
What is your relationship with money? I’m not talking about girlfriend/boyfriend/husband/wife kind of relationship. What I meant is, how do you react to money, what are your feelings towards it? Many people have had unhealthy relationships with money, which most of the time it is not their fault!
It could be because of bad experiences they’ve had at some point of their lives such as being cheated, which in turn, they tend to be more protective over the money they earned. It also may be due to the industry they are in, for example education, where people often think that teachers will not be wealthy. So many people are emotionally attached to money in the wrong way!
What you need to do is understand, think, feel, and act about money. You have to stop believing that you never have enough money. It is the law of attraction. What you focus on most will always gives you the result you are focusing on most.
4. Leverage
When we talk about leverage, many people will immediately think of loans from the banks and it’s not a good thing to have loans with banks because you owe the bank! NO! This is not entirely true and people need to stop having that mindset! The reason why many people think loans are bad is because of this thing called the bad debt, which also translates to having depreciating assets such as cars, high interest rate of credit cards or personal loans.
How about letting me shift your mindset a little by giving you a good debt example. Say, you are able to take a loan for a property you invested in and you took a maximum tenure loan. You managed to rent it out with good rental rates that cover your monthly instalment and also provides you with positive cashflow. Now, how would you look at leveraging from banks? Is it always as bad as what most people think?
5. Take Action
Stop being the by-stander or side-liner who always has something to say about the property market like “property market now not good la”, “nowadays so hard to get loans”, “stock is easier la, property so many things and paperwork” and blame on everything but themselves and never take action!
Your success will never come to you if you just sit there and let those excuses convince you. Successful investors never stop working their way, more especially during down time in the property market, or any other challenges that come in their way.
We are working together with FREEMEN and I’ve talked to them to sponsor you guys to one of their event called Mastering Your Wealth this coming 29th & 30th July 2017 to learn more about right mindset to create your wealth through property investment.
You will get a chance to learn from Asia’s #1 Millionaire Maker, Michael Tan, about property investment knowledge and also developing greater mindset as a property investor.
To attend this event, register your entry here
