Are Great Property Investors Born or Made??

Read this article, thought it was timely and pretty much spot on, could always add to this, but its a great start IMO (extracts from M. Yardley)

Successful property investors are not born with a “How to” manual and they certainly don’t rely on luck.

Consistency is key

No matter which investment strategy you select, capital growth or cash flow, renovations or property development; you’re likely to find that a small group of investors, say 10% do really well and the rest struggle.

This is in part because they have never refined their real estate strategy and taken the time to learn the rules of the game, so they inevitably fall at the first hurdle and more often than not, call it quits before they make any progress at all.

Practice makes perfect, which means that rather than looking for the “one big deal that will make you rich quickly”, you should start your investment journey gently, knowing that you’ll make mistakes along the way and learning from these will make you a better investor.

The main thing that separates the successful investor from the wannabe’s is an ability to consistently outperform the averages.




MTR
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Not sure I'd agree with this part. With average returns and focus over the long term an investor would have been very successful over the past 10 years. The secret is to not get distracted an stop at two properties but to keep going and have the patience, hold and let compounding returns do their thing.

Getting average returns over the next 10 to 15 years will see me very happily retired, infact I work my numbers on been below average returns to allow for my incompetence.

 

I guess it depends what you term as average, I think most people would prefer to consistently outperform averages regardless of asset class.

I get your point though, but it would take longer and some investors may find it harder to stay in the game.

MTR

 

Here is hoping I do the right things and don't become a statistic.

 

I think the article was maybe meaning out perform the average investor who has a couple prop max and sells up within 5 years, rather than build a substantial portfolio over the long term to create huge wealth.

 

In my reading "consistently outperform the averages" makes it sound like successful investors always manage higher returns and doesn't point to the real problem which is selling out/giving up. The paragraph above that point rings true with me.

Sure everyone would. I don't believe that's the main thing which separates successful and wannabe investors as the article states in that last sentence however. It is the earlier point of them selling out and not thinking long term. Overall I like the article.

Having said all that I'm fairly new to all this and can still become a 5 year wannabe

 

10% of investors do well above the other 90% average investors, is how I'm reading it.

 

Actually I think that would be correct.

 

Personally, I think great property investors are made. Yes, some have a naturally better sense of business than others, but I've seen many average people become exceptional property investors through much hard work, a strong commitment to continually study and develop their craft and consciously developing a sophisticated mindset.

 

Good post.
Persistence is key.

Interesting, I have also seen opposite, people losing money because they don't learn from their mistakes and they repeat the same mistakes.

Common mistake taking too much risk, and not timing the market, jumping in at peak.

MTR

 

Well said @MTR!

I have seen that so many times. It's like you can see a train wreck about to happen to someone..yet there's nothing you can do to stop it. Personally, I feel most people only learn from their errors when those errors become too painful to ignore/trivialise.

 

Like with most things in life, I don't think that being his at property investing is due to nurture or nature, I think it's due to nurture AND nature.

 

"Consistently out performing market average"

Is a small sentence but significant one.

It requires;

Sets of skills (ppl,business, time and money management)
Commitment
Hard work
Right team
Mindset.

You get this right and you won't have to chase success, it will chase you!

 

+1

 

I was born this way, an aberration or black sheep of the family. Generations of my family only ever owned the house they lived in, the word debt was blasphemy. I knew from an early age I was different and I found my first mentors at the local library, a collection of books most of us have read describing the basics for building a property portfolio. To rub salt into my parents wounds I became an accountant rather than a tradie. I also don't drive a Holden... the horror!

 

Good for you, when did you start?

 

I truly believe that property investors are not made but cultivated.

I always had an interest in property...I read but did not act. I bought my first place in 1994...and then waited 5 years before I bought another...but then I kept buying. As you buy more it is like going grocery shopping...you start to know all the prices and locations and what is good value!

 

Sash you are a collector, same as Karina...

MTR

 

It must be a throw back from my past life as head hunter in Borneo.

 

There is hope for me yet