In my many years working in real estate and meeting buyers and sellers from all walks of life, I’ve come across a particular group I like to call The Ego Investors.
Who are these people you might ask?
Well firstly, I’ve grouped these types because of one distinct characteristic that shines through bright and clear when I’ve met them – they’re all about the Prestige of calling themselves Property Investors.
Rather than actually doing the work to secure the best investment properties and make sure their investment portfolio is setup for growth and high solid returns, they are more pre-occupied with telling people they are investors and just buying any old property to add to the portfolio.
You might even know one yourself.
It could be a friend or even a family member, but the one thing you will notice about these types is they put more of a focus on being “known” as a property investor rather than actually being a successful one.
They are the ones who talk about how many properties they own and will likely be the first to give “advice” if anyone around them begins to ask questions about investing in real estate.
This guy or gal will lead your down the wrong garden path quick smart, because often, they haven’t a clue about what is involved in building a high performing property portfolio, and are just wingeing it.
They might own 5 or 10 properties or more, but many (if not all) of these will be duds.
Underperforming properties that have gained little equity and be causing a host of problems for the so called investor, such as constant repairs and maintenance, tenant problems and likeminded headaches associated with poor property choice.
At worst, the owner will owe more to the bank than what the property is now worth!
Otherwise known as negative equity.
My tip to you – DO NOT be an Ego Investor.
Repeat… DO NOT be an Ego Investor.
You will lose money and property will eventually become your biggest burden rather than your ticket to financial freedom.
Here’s 4 signs you could be one and need to change your game quick smart…
- You skite to others about owning property, even multiple properties, but you secretly know that none of these have grown in value or performed the way they were promised to.
- You are taking advice from a known property spruiker.
- You’re easily talked into buying any old property without doing property due diligence and research, because you just want to add “another one” to your portfolio.
- You’d much prefer to own more properties, rather than focus on just having a few, strategically selected, “great” properties in your portfolio.
If this sounds like you, you need to do a U-turn quick smart!
Instead, devote your energy to becoming an educated investor, and don’t rush the process or any decision making when it comes to buying.
As I like to say to my investors, lets not be in a hurry to spend $500,000 or more on any old porperty.
Lets take our time to get it right and wait for the very best opportunity rather than the quick deal or the dodgy bargain buy!
You see, the truth is, building a high performance property portfolio is not an easy task, as much as some “professionals” out there might like to claim it
Buying any old property is easy.
Buying the RIGHT property that is going to show you great returns is a lot more strategic.
It requires a thorough understanding of the market and an intimate knowledge of how capital growth works, and how factors in a particular market impact on certain properties.
Not only this, but the right property for YOU may also be the WRONG property for someone else.
This is why you need to be clear on your goals and exactly what you want to achieve from investing in real estate.
In other words, what’s your end game?
Why are you investing in the first place, and is property really the right type of investment for you?
Education and common sense are both key to investing in property amongst other things, but so is being connected to the right people who can guide you in the right direction and offer sound, unbiased advice.
So if you’ve decided that property is your investment ticket, please, I beg of you, leave your Ego at the front door and remember, it’s purely a numbers game at the end of the day. You don’t need to be in love with the house, or even like it for that matter for it to be the right one.
It just needs to stack up when it comes to your overall investment strategy.
This is what I say to my investor clients when I’m helping them understand what the right property is for them.
Keeping your ego in check is not always easy, and when you’re the front-runner in the property game and don’t have a sounding board or middle man (or woman) you can bounce ideas off, it can be challenging to hold yourself in check to secure the right property.