Predicting a Real Estate Investors' Success...

There was a post the other day here on Bigger Pockets by Edward Pluchar inquiring about finding mentors.  You can read his post and some of the responses here... -

As you read through the thread, Edward asked me directly the one question that to me is critical... how did I select a person that I would allow into my mentoring program?

I will not consume your valuable time with what might sound like a sales pitch... so I will get directly into my thoughts on "predicting a real estate investor's success."

First, I have to caution that I have discovered that some new investors take to this stuff like ducks to water.  Others struggle and many times drop out because investing just wasn't for them.  Regrettably, this usually happens after much damage has been done to those who drop out.

The challenge is to determine up front who the successes will be.  A difficult task indeed.

Here are a few things that I have learned to look for that have more or less validated my decision to help others... and many times, but not always, those decisions have been proven correct.

1.  Every successful investor I have ever known does not allow themselves to be a victim to their circumstances.  They accept responsibility for where they are in their life, their decisions and the results they are creating.

2.  Those individuals who have been in the professional business world have an easier time succeeding in real estate.  I believe this is true because many business professionals have learned to work in teams, have been required to be self-starters, many are used to performance based compensation, and for more then a few they have learned how to manage things.  All of these skills translate directly to building a real estate investing business.  Does this mean everyone in this group succeeds?  No!

3.  I have found that for those investors who have not had the benefit of working in a professional environment that they know if they stay where they are the prosperity they are seeking will not be forthcoming.  In fact, they most likely will be stuck in a dead end job with no way out.  And what a tremendous motivator for these individuals.

4.  Successful investors are motivated by more then just money.  This is an extension of number 3 above... yet I believe this is the number one issue which separates the men from the boys.  These successful investors know the money will come, and it has the potential to come in big chunks, often with little effort... especially when compared to the number of hours required to generate that "big chunk" in the working world.  But to get that money moving towards them... they have to work at it.  Fix problems.  In essence. execute item number 1.

5.  The most successful investors get rid of their egos and allow themselves to be taught.  Like a sponge on a mission, those who are willing to learn as much as they can, seek out the advice of experts and then actually take the advice and use it... step-by-step are hands down the ones that succeed almost with ease and are fun to coach.

Now for a real life example...

I get a lot of new investors approach me after they have spent thousands of dollars on other programs.  I am always leery of these investors because I am concerned that they have been taught things that just don't work... and that they can't be untrained.

In late October of this year I was approached by a new investor who fit everyone of the criteria above and had just spent a ton of money on another program.

During the interview I could tell that this investor was one focused and motivated person.  The level of clarity and enthusiam could not be missed... and everything about this persons' background shouted success!

After she was accepted into the program I knew that my instincts were dead on, because she completed the 30 day "introduction" program in less then a week.  And then she spent the next week developing her "farm" area.  Getting out of her car... yes actually getting out of her car, to walk the neighborhood and get a feel for why this would make a great place to get started.

And then she started mining the MLS for properties in that area.  Of course she found several and made offers.  This lady is all action.  Point her in the right direction, let her know what to do, and then stand back.

Within four weeks of getting started she had offers in.  Within 6 weeks she had her first offer accepted and she is now in the process of getting it purchased.  Her goal is to close by the end of the year.  Why?  Simple... Because that was her goal!

So... what does this mean to each of you reading this post?

Here is the take away...

Ask yourself... How do I measure up to the criteria above?  Do I display the characteristics of a successful investor?  If not, what changes do I need to make to achieve my success? 

Figure out what needs to change, make those changes and then continue on to your much deserved success.