The “Billionaire Tax” Won’t Save You
Most people want to be financially free. Most people would love to have financial security. Most people would love to have money coming in regardless of whether they worked or not.
You can stop working and do something you really want to do.
To me, real estate represents that freedom. Real estate means control over my life and my future. I’m not depending upon a retirement plan filled with stocks, bonds, and mutual funds — investments that someone else manages. I want control of my financial destiny.
When I hear such excuses as “I don’t have any money” or “I don’t want to fix toilets.” I know these excuses are just that. I know people are looking at the journey, not the destination.
A friend of mine has a saying about this: “Many people will not start the journey until all the lights are green.”
Unfortunately, too many people allow their excuses to get between them and the life they’d love to live. Rather than look beyond real estate, looking at what becoming a real estate investor can do for their lives, most people are blinded by their excuses.
You Must Have an Entrepreneur Mindset
A real estate investor must have the same mindset as an entrepreneur. The transition, or metamorphosis to an entrepreneur, requires a change to the following traits.
Today, if you’re running into a wall and not experiencing the success you were hoping to, I ask you to take a look at your mindset. How are you viewing the world? Are you falling into old habits and ways of doing things that resulted in the same lack of success in the past?
If so, it’s time to stop being the same person and doing the same things. It’s time to change.
- A mindset of freedom instead of security.
- The ability to operate without money.
- The ability to operate without security.
- A focus on opportunity rather than resources.
- Different management styles to manage different people.
- The ability to manage people and resources they do not control.
- A focus on team and value rather than pay or promotion.
- An active learner — no graduation day.
- Generalized education rather than specialized.
- The courage to be responsible for the entire business.
You may notice that farmers, possibly our earliest entrepreneurs, have had to develop most of these traits to survive as farmers. Most had to plant in the spring to harvest in the fall. Most had to pray that the weather was in their favor and that pests, diseases, and insects left enough for their family to live on through a long hard winter. Rich dad said, “If you have the mindset and toughness of a farmer, you will be a great entrepreneur.”
Characteristics of an entrepreneur
If you want to become a successful real estate investor, the question is: Do you have what it takes? After spending decades working with countless business moguls and investors, I’ve come to identify certain characteristics of entrepreneurship that most often lead to success.
#1 Bravery. When you announce that you are going to start investing in real estate, people will think you’re crazy and judge you—partly because they do not understand your motives and, let’s face it, partly because they are jealous you’re making your daydream a reality. You’ll need to have the courage to go your own way, even when everyone around you thinks differently or voices their objections. Being an investor can be a lonely road because your challenges and successes are unique and many people simply cannot relate.
#2 Fortitude. Every entrepreneur and investor must have the fortitude to continue moving forward even in the face of failure. Otherwise, you’ll quit at the first sign of trouble or the first embarrassing mistake. Those who demonstrate the strength of character always get stronger in the face of failure.
#3 Integrity. An investor must honor their commitments, act with integrity, and be honest at all times. If you operate with integrity more people will want to work with you. Remember, investing is a team sport. If you lose your integrity, deals will be harder to find.
#4 Self-motivation. When you’re out on your own, nobody is going to give you a mid-year review to let you know how you’re doing or put together a plan for the next quarter. Nobody is watching you punch in and out, counting your sick days, or micro-managing your tasks. That’s right: You’re accountable for yourself. If you’re self-motivated, then that becomes much easier—you stay focused on what needs to get done and you don’t allow the lack of structure to negatively impact you.
#5 Passion. If you don’t love what you’re doing, why are you doing it? Plus, passion is downright contagious—it’s how you get others to buy into your vision, how you sell your product/service, how you connect with your customers, and how you get others to invest in your ideas.
Improve your vision
Great investments are seen in your mind’s eye, and nowhere else. I learned this lesson from rich dad when he wrote out in big words on his yellow tablet:
SIGHT is what you see with your eyes.
VISION is what you see with your mind.
By investing the time to analyze thousands of investments, my vision slowly improved. Each time I made an offer to buy a property, I learned something, even if the offers were laughed at or flatly rejected. Each time I arranged the financing with a banker, I learned something. Each time I bought a property, I learned something new and valuable, even if I lost money on the property. Today, the accumulation of all those lessons, good and bad, is the education and experience that make me rich and allow my wife and me to make more and more money in real estate.
In the real world, there aren’t “For Sale” signs that say, “Here is a great deal.” All the signs say is, “For Sale.” It is your job to train your brain to see a great deal and to also negotiate a great deal. That takes dedication and practice.
A pot of gold at the end of the rainbow
The process of becoming an entrepreneur is painful and time-consuming, but I also want to let you know that there is a pot of gold at the end of the rainbow. As with any learning process, even learning to walk or ride a bicycle, the start of the process is always the hardest.
If you stick with the learning process, your world will change, just as your world changed when you finally learned to walk or ride a bike.
For me, the pot of gold at the end of the rainbow has been greater than my wildest dreams. The process of becoming an investor has made me far richer than I could have become as an employee.
Play it smart,
Editor, Rich Dad Poor Dad Daily