Characteristic's of a good investor (what are they)

General Real Estate Investing
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Characteristic's of a good investor (what are they)

Quentin Mitchell
Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes

They are a lot of reasons some people have success in real estate while other's don't have as much or any at all, what are some things you think make some investors successful?

Here are my few feel free to add more.

Flexible (this game is unpredictable so you have to be willing to adjust accordingly).

Patience (Especially in the beginning it takes time to get systems in place and people in place). 

Risk-taker (You got to be willing to take chances when opportunities present themselves).

Personality (in less you have a ton of money already, people will not enjoy working with an a**hole)

Outside the box thinker (got to be able to see things that others don't see or not willing to try)

Willing to learn (the ability to take good advice as well as seek information to advance your business)

Committed (everything isn't going to work as planned so you got to be willing to continue to try)

Know when you say no (you got to say no to bad deals and/or partnerships)

Please fill free to add or critic my list as you see fit.

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Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
6y

Real estate, more than anything else I've done, demands that you make quick high-stakes decisions on the basis of information that is always incomplete.

You've got to be able to pull the trigger. If you're the kind of person who can't (and that's many, many people out there), no amount of learning and education is really going to help. The world is very much FILLED with those who would rather do anything than confront uncertainty.

Now I'm not saying that this means you have to dive headlong into obviously suicidal risk, screaming "YOLO" all the way. But you do have to be able to take a mostly calculated risk that you can never be fully sure of, and do it quickly when the opportunity comes up.

In another sense, this hits on another point that I constantly bring up in these forums. You have to have the mental resources to accept that you are not always going to be a winner in life. That you are going to fail, and be damaged and changed by your failure. If you can't bear to think of yourself and accept yourself as someone who isn't a magical, special rainmaker in all ways (and there are many, many people who absolutely NEED to believe this about themselves), you're simply never going to get anything done in real estate over the long haul.

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  • Scott Mac
    Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y

    Know yourself.

    Know what you want.

    Know how to get it.

    Go after it and make it work.

    Put the money in your pocket!

    1Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    6y

    Commitment is the most important on your list (call it grit, perseverance, commitment, tenacity, resolve...it's all the same...and all that matters).

    6Reply
  • Mike CumbieBusiness Member
    REALTOR® · Brockport, NY · Member since 2015 · 3k+ posts · 4k+ votes
    6y

    Seeing things at a high level and not getting bogged into all the little details.

    1Reply
  • Bjorn AhlbladPro Member
    Investor · Shelton, WA · Member since 2017 · 6k+ posts · 6k+ votes
    6y

    Know the difference between a bad deal and a good deal.

    Learn to underwrite

    What can be repositioned and what can't. Repositioning a building in a bad neighborhood just does not pay.

    1Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y

    Real estate, more than anything else I've done, demands that you make quick high-stakes decisions on the basis of information that is always incomplete.

    You've got to be able to pull the trigger. If you're the kind of person who can't (and that's many, many people out there), no amount of learning and education is really going to help. The world is very much FILLED with those who would rather do anything than confront uncertainty.

    Now I'm not saying that this means you have to dive headlong into obviously suicidal risk, screaming "YOLO" all the way. But you do have to be able to take a mostly calculated risk that you can never be fully sure of, and do it quickly when the opportunity comes up.

    In another sense, this hits on another point that I constantly bring up in these forums. You have to have the mental resources to accept that you are not always going to be a winner in life. That you are going to fail, and be damaged and changed by your failure. If you can't bear to think of yourself and accept yourself as someone who isn't a magical, special rainmaker in all ways (and there are many, many people who absolutely NEED to believe this about themselves), you're simply never going to get anything done in real estate over the long haul.

    6Reply
  • William Allen
    Investor / Wholesaler · Nashville, TN · Member since 2014 · 1k+ posts · 667 votes
    6y

    Gino Wickman just came out with another book called Entrepreneurial Leap and he mentions 6 essential habits.  What do you guys think?

    1. Visionary

    2. Passionate 

    3. Problems Solver

    4. Driven

    5. Risk Taker

    6. Responsible (blame no one)

    1Reply
  • Quentin Mitchell
    OP
    Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
    6y

    @Jim K. That was very well put I agree 100% with all that you said the ones that don't get it are the ones that are afraid to make a mistake or be wrong it can happen but it also can not happen.

    0Reply
  • Bill F.
    Investor · Boston, MA · Member since 2015 · 1k+ posts · 3k+ votes
    6y

    @Jim K.'s point is excellent: Life is an incomplete information game. It is poker, not chess. 

    Here is a quote that I believe sums up investing very well: 

    "Investing is the intersection of economics and psychology. The analysis is actually the easy part. The economics, the valuation of the business isn't that hard. The psychology - how much do you buy, do you buy it at this price, do you wait for a lower price, what do you do when it looks like the world might end - those things are harder. Knowing whether you stand there, buy more, or whether something has legitimately gone wrong and you need to sell, those are harder things. That you learn with experience, by having the right psychological makeup." Seth Klarman. 

    To answer the question, I think recognizing where your knowledge, skills, and abilities best align and focusing your efforts there is the lynch pin of being a successful investor. It is a hard pill to swallow, but the fact is that not everyone has the right psychological makeup to be a successful investor; recognizing that and NOT investing can lead to riches or really prevent massive losses. 

    0Reply
  • Jim K.
    Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    6y
    Originally posted by @William Allen:

    Gino Wickman just came out with another book called Entrepreneurial Leap and he mentions 6 essential habits.  What do you guys think?

    1. Visionary

    2. Passionate 

    3. Problems Solver

    4. Driven

    5. Risk Taker

    6. Responsible (blame no one)

    Is it just me, or do other people wince at "driven" and "passionate" being listed as separate characteristics in lists like these? Would anyone else then wince again because the term "passionate" here is being applied to how you feel about a business?

    "Passionate," at least for me, is not a word that springs to my mind when I think of entrepreneurship. "Passionate" carries overtones of, um, different kinds of activities. This is just too freaky-freaky for the likes of me.

    0Reply
  • Account Closed
    Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    @Quentin Mitchell

    I'll add to everyone's already thorough lists.

    - Taking emotion out of decisions

    2Reply
  • Timothy Lewis
    Banker · Bowie, MD · Member since 2015 · 57 posts · 16 votes
    6y

    @Quentin Mitchell I would also add consistent. I believe successful investors practice their craft regularly allowing them to gain more experience, confidence, and opportunities as a result.

    0Reply
  • Quentin Mitchell
    OP
    Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
    6y

    @Timothy Lewis I agree the more you do anything the better you get at it, so consistency is definitely a needed trait.

    0Reply
  • Quentin Mitchell
    OP
    Investor · Chicago, IL · Member since 2016 · 197 posts · 105 votes
    6y
    Originally posted by @Scott Mac:

    Know yourself.

    Know what you want.

    Know how to get it.

    Go after it and make it work.

    Put the money in your pocket!

    I like the put money in your pocket part.

    1Reply
  • Kata Walters
    Rental Property Investor · Palm Desert ca · Member since 2016 · 101 posts · 72 votes
    6y

    @Quentin Mitchell dedication , motivation , good morals , reliable , responsible, professional , passionate and accountable . All these come to mind especially when dealing with other people’s money , investors , tenants. Investing is a great way to build wealth but a good investor must also keep their moral compass pointed in the right direction . Being an honest dependable business partner in all aspects of your investing business is in my opinion key to long term success.

    0Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    Perseverance + Patience = WINNING FORMULA

    In a world of Social Media & Amazon Prime, delayed gratification is just too long and most people want it NOW! 

    But there is a reason why mortgages last for 30 years!

    0Reply
  • Calvin OzanickBusiness Member
    Property Manager · Janesville, WI · Member since 2017 · 708 posts · 297 votes
    6y

    A big one that I feel most investors struggle with is making a plan and sticking to it. Many investors set a goal for cash flow or units, but do not stay on that path. Once you make a plan, you will be most successful by sticking to it and not changing your process. 

    Wisconsin Property Managers4.8411 Reviews
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    0Reply
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