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10 CHARACTERISTICS THAT MAKE UP A GOOD AND BAD INVESTOR
I’ve worked with so many investors on an individual basis and I’ve noticed that there are a few characteristics that successful investors have in common with each other. There are other characteristics, but these seem to be the most common. Here they are:
1. A Positive, Can Do Attitude. Successful investors tend to focus on the positive things along with seeming to find the ability to constantly change lemons into lemonade. They don’t seem to allow simple hurdles (not having the cash, credit, or experience) to stop them or delay them from successfully buying properties.
2. Solution Oriented. Winners don’t focus on the problems. They focus on finding a solution that can solve their or other’s problems. They are often considered to be "Outside of the Box" thinkers.
3. Not Afraid to Talk to People. Every successful investor realizes that they are only as good as their team or their ability to network with other successful investors.
4. Very Coachible. Being able to be mentored and coached is a critical element in successful investors growing and taking their business to the next level.
5. Constantly Marketing. You are only as good as your last closed deal. To ensure that their business always has a steady stream of business, good investors never stop marketing, no matter what kind of deals they are working on.
6. Takes Responsibility For Business. Great investors realize that they are ultimately responsible for what and where their business is at currently and for how successful they are personally.
7. Willing to adapt to market changes. The market is ever changing and good investors are changing the way that they do business on a regular basis to keep up with current market trends, to maximize their profits and to minimize losses.
8. Constantly Learning. Investors realize that not only do they have to adapt to the changing market, but that they can always learn and master new techniques to help them master their craft.
9. Looks for a win-win. Good investors are always looking to accomplish a win-win situation when they are either working with other investors or home owners. They realize that pigs stay lean, and that hogs get slaughtered.
10. Helps Other Investors. Successful investors understand the fact that there are plenty of good deals out there for every investor and that by helping greener investors succeed, they will also succeed in developing a relationship of mutual respect and success that will often bloom into other deals.
10 CHARACTERISTICS THAT MAKE UP A BAD INVESTOR
I’ve also worked with a lot of bad investors who also seem to share a lot of the same characteristics. Isn’t there a saying that "we are our own worst enemy?" That is definitely the truth for those investors that share these traits. Here they are as well:
1. A Negative, Can’t Do Attitude. Bad investors focus on how or why they can’t do something or succeed. "I can’t do it because of…" is something that is all too common in their vocabulary.
2. Looks for ways not to succeed. "You can’t find deals, you can’t find buyers, I can’t do it because I am to busy…I don’t know how to do that" are ways that they look to fail. I can’t do this as I’m not prepared….People don’t realize that they have the time right now to start changing the way that they live their life to start succeeding in whatever they set their mind to, including real estate!
3. Afraid to talk with people. While it is possible to occasionally do a deal on your own, bad investors constantly struggle with trying to do everything themselves and the conventional way. When they run out of contacts or money, or credit, they shut down and don’t take the time to get out and network and talk to people who can help them find funding, deals, and buyers. "Only the lonely…" are bad, short lived, investors that don’t realize the need to talk with others and network.
4. Has to do things "their" way. Investors that are unable to adjust or utilize other techniques are dinosaurs that haven’t died off yet. So many investors are still doing business as usual the same as they did it a year ago and they are wondering why they are having a hard time making money. Quit doing it "your" way and start learning how to do it the right way.
5. Stops Marketing. Unfortunately I see this with investors of all types. Investors get busy and excited about a large deal and spend all their time and energy focusing on how to make that deal work without spending any time to focus on other monetary producing marketing. Often, these deals don’t go through and they are left holding the bag with an empty pipeline and no income. Not a good scenario!
6. Blames Others For Their Failures. This is probably more frustrating than anything else being in the business that I am in. Investors that can’t take accountability for where they are and who point fingers as the cause for their short comings is the sure sign that the investor isn’t going to last long. We are all personally responsible for where we are and how successful we are.
7. Don’t Adjust Business To Market Trends. This is very similar to #4. Education is very critical in this business as there are literally a million ways to skin a cat and make a deal work and with all the new federal and state legislation changing, it’s important to know what is going on in your local and nationwide markets. Three things are constant: taxes,
8. Cheap. Some people are so busy trying to save every possible penny that they are jumping over dollars to pick up pick up nickels. Successful investors realize that you have to spend money to make money and that to be truly successful, you have to spend some money and delegate the small rocks. I’ve been around investors who were trying to save every dime. They don’t realize that their time is better spent tackling the big rocks!
9. Greedy. Bad investors try to squeeze as much possible money out of each deal which often leads to them holding on to deals much longer than they possibly should and often leads to them losing money on property that they end up holding for a lot longer than they should have.
10. Selfish. Bad investors are those that are not willing to share resources, leads, or techniques on how they were able to find property. There are so many deals out there right now with this current market that it is very rare that investors bump heads on deals unless they are getting their info from the same exact source or wholesaler. Little do they realize that if they were help or share their information that it would often lead to more deals for them to close.