Every few months I reflect on what did and did NOT bring the hoped- for results. It’s a helpful exercise, that reminds me of Tolstoy’s line that opens Anna Karenina.
“All happy families are alike; each unhappy family is unhappy in its own way.”
Successful Apartment Investors Do the Same Things Well
Successful apartment investors do a few of the same things well. Here are two examples
Successful investors pounce. When next year’s interest rate is likely to be higher and in a rising market this year’s “pretty good” will be better than next year’s great opportunity.
Successful investors pay attention to the market and their professional advisors. They will ask questions and do their own research. But they work hard to figure out what reality is
Unsuccessful Apartment Investors Do Many Different Things
Unsuccessful investors do a wide array of things that lower their odds of success. Here are some recent examples.
Unsuccessful investors have an unreasonably high opinion of their thinking. They seem to think that only a fool would perceive the world differently. Regardless of how many decades of service, professional designation or awards granted to their expert advisor, they think their opinion is better than any expert.
Unsuccessful investors prefer their valuation model to local feedback about what property is selling for. Often, they base their valuation on another investment type and another geography. They know what property should be worth. One family missed three superior options. They were not so presumptuous to say out loud that hundreds of local were overpaying for years. But that appears to be their thinking.
Unsuccessful investors don’t trust their professional advisors. Some think that their advisor cares more about their compensation than about them. Instead of finding an advisor they trust, they discount the advice of the advisor they have.
Unsuccessful investors engage in magical thinking. They think other people need to be awake, alert, bold, careful, diligent, patient, and show initiative. They’re different and special. They think they only need to be open to success. The universe owes them.
Unsuccessful investors are sure their used building is worth more than most similar used buildings in the same zip code. Routinely, owners seriously assert that their building is special. They mean the building is special because they own it.
What have you witnessed that characterizes either successful or unsuccessful investors?
Please tell me; I need all the help I can get.
Terry Moore, CCIM, is the author of Building Legacy Wealth: How to Build Wealth and Live a Life Worth Imitating. Read his “Welcome to My Blog.”