Success in real estate investing depends on three things: first on leadership, then on people, and finally on location. The ability to direct realtors to find the correct property, mortgage brokers to finance, lawyers to close, contractors to fix and buyers to buy requires leadership. Leadership is possible only when you have a strong understanding of the components that make each strategy work.
I have found that most professionals, even after years of experience, veer little from the beaten path. They see the world through their perspective and not as the world really is. The lawyer looks at a property from a liability standpoint, the mortgage broker from an equity angle and the accountant from the tax perspective. When the deal is viewed from different vantage points, different conclusions are drawn, yet the deal still must be assembled in a unified manner. This is dangerous and requires strong leadership to guide each team member to your desired goal. The other major problem is that each professional is working with 30 other clients simultaneously while closing your deal. Your leadership abilities will move your deal to the top of the pile. Your deal deserves the highest standard of attention and quality.
The majority of self-made millionaires have leadership skills. The ability to lead comes from self-confidence which is a result of a healthy self-image combined with expert knowledge. Someone with a healthy self-image accepts responsibility and realizes that results follow effort. Understanding the complete game allows a leader to direct the events that foster accomplishment. Having expert knowledge also applies to wealth building behaviors that play over and over again in the leader's mind to form habits. Leaders know that their power team members work for them and that they alone carry the burden of failure. Advisors like lawyers, inspectors, and contractors are paid regardless, even when you lose money on a deal.
Always be wary about following the path that many are traveling. Herds are slaughtered and they usually do not realize it until the very last second. At slaughter houses, cattle travel down a path with many corners, unable to see what is happening ahead. Today, we see the attempts of big business to corral Generation Next. Cards that record purchase points are used to determine their individual needs and build a customer profile. These points are awarded for purchases of food, clothing, goods, etc. The redeemable gift reward points motivate the customer to use the card consistently. This tracking system creates a customer profile and helps corporations determine customer needs and personalize advertising to match. Leaders must be conscious of this profiling to avoid being manipulated by marketing systems.
Leadership requires greater awareness and high standards. Being more aware of your surroundings and having higher standards is worth more than gold. Both keep you from being caught up in corrupt activities. There are people who cannot sleep unless they feed on someone's finances. Give them a wide berth. Good people are beacons to guide your ship by. I mention this because leaders attract like minded people as well as crooks. Your ethics set the tone for all future business with the other leaders that you attract. A strong leader understands that wealth is a magnifier and can increase freedom or addiction. Therefore self control is paramount.
A leader must have self control and maintain professional composure even when dealing with foolish people. You cannot pound foolishness out of a fool so don't spend time responding to their warped logic, or else you may look foolish also. Instead, answer in simple terms or you will fan the flames. I was surprised when a successful, well-known investor went on the attack after his character was belittled by a comedian making foolish statements. Keep foolish people out of your advisor team, rental property, and partnerships. Take the high ground and be a leader. |
