Think Like Minnesota Real Estate Investors Do

Back in the nineteen eighties, if you were going to go on a diet, magazines would suggest that you “think thin.” The magazine articles never actually explained how exactly this was done, but everyone knew that was what they should do. Internalize the mindset of the thin, whatever that was supposed to be. It follows that, if you want to make money, you should be able to accomplish that goal by adopting the psychology of the wealthy, right? As a matter of fact, this is true. In particular, you should adopt the attitude of the successful property investor.

Successful real estate investors are opportunists. They always have their feelers out for new moneymaking opportunities. They position themselves in the way of information. They “walk the walk” of the real estate investor, in a manner of speaking. And because of this behavior, they notice things.

Ken McElroy, writer of The ABCs of Real Estate Investing, which is part of the Rich Dad series, says it's all about seeing patterns. If you look at enough pieces of property, explore enough areas, speak with enough people, McElroy said, you will start to notice these patterns. Then things will start to happen. You may begin to seem lucky. And, McElroy says, this may be luck, but it is a kind of luck that comes from being prepared.

Remember: fortune favors the prepared mind. Opportunities for profit are all around us, but if we are blind to it, it will seem as though it doesn't exist. The prepared mind recognizes opportunity.

McElroy emphasizes repeatedly that being successful in real estate is a process. It isn't just an event that happens one day, as in one day we're suddenly successful. It's something that you do each day. Eventually things will start happening for you.

Someone who is successful concentrates on doing things step by step, on learning one subject or another, or closing this particular deal. It is a “walk before you can crawl” proposition.

For example, McElroy says that if you've located a good deal, you can obtain the necessary funds because others will want a share of the eventual profits. This is not about negotiation skills necessarily, he said. Clearly, skillful negotiation can get you an even better deal at times, but you don't need to fret over whether you can hold your own at the negotiation table. Focus on looking for good deals.

Although they are always considering risk, always cognizant of it, successful investors aren't scared away by it. They figure out whether a risk seems reasonable. If the numbers work out correctly, says McElroy, then it is a good deal. If it is a good deal, the smart real estate investor goes ahead with it.

Piece of cake.

People who do not understand how to properly evaluate risk may think that everything is too risky. They make the assumption, for instance, that a bigger deal may be too risky for a novice to deal with. They make that assumption because they have the misconception that the investor is investing a prodigious amount of his own money into it when, in reality, a bigger deal has the potential to make greater profit for those involved. For this reason, it may not be as hard as you think to find backers for a deal like that. In the end, not need to put up as much of your own funds as you would have on a smaller transaction.

Real estate investment is similar to anything else you want to learn how to do. Well, for one thing, you have to learn the ropes. And you learn by doing. Go out and examine pieces of property. Take trips to cities as though you intended to buy. Go online and read about areas. Check out what others have to say about the real estate climate an area. Get to know people. Before long, you will have learned enough to begin thinking about making a deal. You don't need to have a pile of money in hand prior to entering the game. Just get out there and enjoy yourself. Everything else will come eventually, and in the meantime - you can search the Minnesota MLS for real estate listings and investment opportunities.