Calmness: An Invaluable Trait for a Real Estate Investor

The Investor Must Be Like A Pendulum
One of the unique aspects of real estate investing is the wide range of activities that are required.  It is necessary to be like a pendulum, ready to swing into action at any moment to handle a new incoming issue, and then return to the center, ready to proceed toward the overall goal.  Circumstances may arise that change the direction of an existing investment, or a new opportunity may come along that requires a shift of energy and resources on-the-fly.  Sometimes it feels like the whole world has come to a halt and hinges on the result of one factor.  Other times the investor is pelted from all sides by a range of tasks, duties, emails, texts/calls, and traffic, each one acting like a small pickax which erodes peace of mind and produces a state of agitation.

A Calm Mind Sees the Practical Next-Step
When the mind is irritated or anxious, our behavior becomes less intelligent, we act impulsively, and we may block out creative solutions to our problems.  Calmness has the opposite effect.  Calmness is like a sword that pierces the veil of disturbing circumstances and perceives a path of action that overcomes challenges.  Even when the final outcome is unknown, a calm mind can find the intuitive next-step that will lead to success.

Potential Sources of Anxiety in Real Estate
In my real estate investing experience, I have found anxieties or mental disturbances can generally be categorized as one of three types:

1. Somebody didn't do what we wanted them to.

This could be a contractor falling behind schedule, a mortgage broker coming up with terms differently than initially promised, or a tenant who promised to pay and then didn't.  This category of event is stressful because we don't have control over others' behavior. When we realize that this category of event is a recurring theme in real estate investing, we can learn to be calm when it happens and think clearly about how to respond.

2. We want more in, less out.

When it comes to income, we want more.  When it comes to expenses, we want less.  This in an obvious theme, and once we get used to it, we can become more calm and relaxed when issues in this domain arise.  For example, when our contractor gives us an invoice, or the utility bill comes, we want it to cost less than it does.  When we receive the income check from our property manager, or the final proceeds from our sale, we want it to be more. Rather than get uptight in these "more in is better, less out is better" scenarios, we can simply notice the pattern and learn to relax before responding impulsively. The successful investor is one who can deal constructively with reality.

3. Not wanting problems to occur.

Being a real estate investor or property owner means facing a steady stream of problems.  Things are installed incorrectly, the wrong thing is ordered, the guy doesn't show up,  appliances fail, pipes leak, buyers fall out of contract, rodents get in, tenants don't cooperate, and some people behave unethically.  If, when problems arise, we immediately get into a mode of "this shouldn't be happening" we will lose our mental equilibrium.  The solution is to see the big picture: "By handling this small task now, I am contributing to my long-term large-scale success as an investor."  Or: "My job as an investor is to calmly assess this situation, and come up with a solution."

False Thoughts About Money
Dealing with challenges in the financial realm can bring up a variety of lack-based thoughts, which are sometimes subtle and creep into our minds virtually undetected.  They can be made known by a feeling of being tense and uptight.  These are examples of such negative thoughts:

1) It might not work out.
2) I'm going to run out of money.
3) There aren't enough deals for me to get one.
4) I don't have access to enough resources to move forward.
5) Something bad could happen to me.

It is certainly beneficial to be aware of potential failures and to avoid unwise financial moves, and it is healthy to think ahead of why a deal might fail before initiating an investment.  But, it is unproductive to constantly entertain negative thoughts, especially once a deal has already been purchased and the project is midstream.

In such a case, it is advisable to immediately replace stressful thoughts with equally-true positive thoughts (correlating to the opposite of the 5 thoughts above:)

1) I will calmly find a solution.
2) I will evaluate the numbers and clearly determine a next-step.
3) There are enough deals for me to find one.
4) There are resources all around me, waiting to be discovered.
5) Something good could happen.

A Technique
Anytime anxiety comes, take a moment to sit quietly and take a few slow, deep breaths.  Introspect and observe the knot-point in the mind that is causing the anxiety.  Instead of focusing on the frustrating aspect of the problem, shift to finding a positive, practical solution.  Sometimes action is needed, other times patience is needed.  Calmness shows the way!