Wealth Creation is all about mindset.
Dovid Preil has worked in all different aspects of real estate, from mortgage brokering to multifamily syndication. The through line he has found in all successful real estate investors is mindset.
Importance of Mindset
Mindset is based in knowledge and experience. Without either, you are left with fear. The fear is a recognition of the risk, and risk is rooted in the probability of loss. Fear of loss is powerful. It will keep you from the ability to take action.
That’s risky! Investing in something you do not understand, is very risky. Real Estate is not rocket science, but if you do not understand it and how you can lose, your likelihood of success is low. When you don’t know what you are doing, and you follow the herd, you are waiting to lose. The solution is get educated.
The investor mindset is focused on how to invest and create wealth rather than spend an increase in income. This is not limited only to people with a large salary. If your focus is to make more so you can spend more, your mindset is not focused on wealth creation, rather you are focused on consumption.
Investors take the time to study a market so that they understand the market and the risk. No asset is immune from loss, but real estate has historically been a great hedge against inflation. Over time, it trends up, and unlike the stock market, it is not easy to push a button and sell. If you have a long enough runway, real estate will work out.
Wealth creation starts with a plan. This plan has goals and with each goal accomplished, a new goal is set.
Keys to Wealth Creation
- Budget: When you live within your means and your budget, you create habits. Habits become discipline. When you create a habit of saving, you can set goals, and save so that you have the ability to invest. Once you have $10 to $20k, you can invest. But if you never have the savings, you will never have the resources needed to invest.
- Focus: Learn one asset at a time. There are an unlimited number of options to invest in; Stocks, Bonds, Currency, Real Estate, Precious Metals, etc. To experience the upside of any market, you have to focus and learn the asset, and how you can make money without a high degree of risk. Budget your time to learn the asset.
- Action: In order to gain experience, you have to take action. Once you have learned the asset, built a plan that you can execute easily, you have to take action. Without action, all of the efforts are for not.
Each week I ask my guest, “What is the Biggest Risk Real Estate Investors face?”
BIGGEST RISK: Investing with the wrong people. If you work with good honest people, you have the best chance of coming out ahead.
Technology is changing real estate. Amazon has totally changed the retail real market. 3-D printing is changing construction. How will it change the cost and opportunity to build a building? What about the goods that are currently manufactured, and warehoused waiting for you to order? Will the demand for warehouse space decrease due to the use of 3-D printing?
For more go to:
Linkedin: Dovid Preil