If you’re interested in investing in commercial real estate, you might assume that the most important thing you should to do to get started is dig down and start learning everything you can about commercial real estate.
Unfortunately, it’s not true.
That’s because while it is essential you know as much as you can about commercial real estate, there is something even more important: your mindset.
The right mindset will help you achieve success by encouraging you to tackle commercial real estate with zest and a positive outlook… while the wrong mindset will keep you trapped in a poverty mentality.
The Poverty Mentality
People who have a poverty mindset don’t think about the benefits they gain by owning commercial real estate. Instead, they focus on the cost, and imagine that by spending the money to buy a property – which they assume only the rich can afford – they will end up with less money.
In fact, they are so intimidated that they don’t allow themselves to consider how they can acquire a property- for example, using tried and true techniques like seller financing, master leases, or other creative financing strategies.
Where does this poverty mentality come from?
Sometimes this mindset is caused by experience, family or cultural beliefs, society, or a past failure.
While this mentality might feel comfortable, it is a dangerous feeling that keeps you from stretching yourself to achieve more. Instead of taking risks in order to make their investment dreams come through, they stay in the zone they are familiar with.
The Abundance Mindset
The commercial real estate investor will focus all their energy on how they can acquire a property. Instead of looking at the cost of the property, they first try and find the financial and other benefits gained by purchasing the property.
For example, if buying the property would help them achieve their investment goal of retiring by a certain age, and the numbers work out, then even if they don’t have enough money in their bank account, they will find a way to make the deal happen.
They realize that there are numerous options they can take advantage of to help them acquire the property, and they are willing to take the chance of hearing “no” in order to get to a “yes.”
How can you cultivate an abundance mindset?
First of all, don’t allow yourself to be defined by failure. Failure isn’t bad… it simply means you need to try a different method to get what you want.
When you begin to look at problems as necessary steps on the way to success, then instead of feeling frustrated and powerless when things don’t go your way, you will realize that you are that much closer to success.
Second, no one can go it alone. Although you can and should read, watch and listen to as many sources of information possible, ultimately if you want to be truly knowledgeable in commercial real estate (or any field) you need to find a mentor.
An experienced mentor will save you time and effort by allowing you to learn from their mistakes. They can help guide you when you start to feel like you’re losing, and remind you how far you’ve come, and of the reasons why you started out on this journey.
And lastly, you need to embrace your fear, and plunge right back into commercial real estate. Yes, you might fail, but now you know that failure is a good thing. No one will judge you – every experienced commercial real estate investor has been where you are. You have every opportunity to achieve your goals and live the life you’ve been dreaming of.
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