Getting involved in real estate investing is a rollercoaster by its very nature. Your emotions can rise to their best and sink to their lowest each and every time you bid on a property. It can be discouraging, feeling like you are always on one end or the other of that spectrum, depending upon whether you lost out on a great property, or whether you get the deal you have been waiting for. Sometimes you may experience that “blessing and a curse” sensation when a huge problem crops up in the property you just purchased, or when you narrowly avoid getting sucked into a money pit. There may be times when you won’t really know the full extent of the situation until you get into the nitty gritty of the property.
All of these ups and downs can leave you exhausted and feeling stressed. Use these three principles to keep your investing woes to a minimum.
1) Don’t take it personally, don’t get attached
This can be harder than it sounds, when it is so easy to get caught up in that winning or losing dichotomy of each real estate deal. But each potential purchase or sale has many factors that are out of your control. Do your best to make your offer reflect your best effort, and put your energy into the details that you can control. If you try not to get too involved in what may be, you can walk away more easily when things don’t go your away.
2) Diversify your portfolio
As you build your wealth, it’s a good idea to add to your portfolio in a diverse way. That way, your entire business is not depending upon one building, one specific economic development project, one type of tenant, or even a single part of town. You cannot predict everything, so don’t let one lone outside factor dictate your real estate success.
3) Celebrate the victories
Don’t forget to celebrate the wins as they come. While you may come to a verbal agreement quickly, ironing out all of the details takes a while in real estate investing. Take the time to pat yourself on the back for hard work that is completed, before you rush off to your next goal.
Hopefully keeping these ideas in mind will allow you to keep the stressors that you can control in check, as you move through the volatile and finicky real estate investment market.