Every investor gets “stuck” at some point in his or her investment journey. Experienced investors may get frustrated if their portfolios aren’t growing as quickly as they’d like because they can’t seem to find the investors or properties that fit their systems. Newer investors may be derailed by frustration after they complete several deals—and then hit a few speed bumps that leave them feeling like they’ll never do another one!
When investors come to me with similar tales of woe, I challenge them to look at what’s really going on. Regardless of their level of experience, I would argue that most investors who feel “stuck” have lost track of the big picture. They know they need more money to buy the property they need to buy to achieve their Personal Belize. What they don’t seem to know is that their frustration is not induced by market changes or problems finding or keeping money partners.
The problem comes from not being honest about what’s really holding them back!
What’s really holding them back is an unwillingness, hopefully temporary, to get themselves unstuck and moving forward. That’s right. The real problem is probably looking you in the face every time you pass a mirror!
When I feel stuck, I take a tough look at what’s going on—and I’m honest about the things I can change.
- Am I unable to find co-venturers or am I looking in the wrong places?
- Is it impossible to find a property that suits my portfolios specs (cash-flowing buy-and-hold, lease-to-own or fix-up-and-resell) or do I need to update my geographic requirements or switch-up my real estate team members?
- Am I choosing to be angry at market fundamentals I didn’t anticipate—or am I willing to adopt smarter exit strategies based on what those fundamentals tell me about the future?
For me, the bottom line is simple: if I choose to define myself as a sophisticated real estate investor, I must also choose the actions that merit that designation. In many cases, the best action one can take to get “unstuck” is to facilitate the kind of attitude adjustment that comes from a little education.
To get myself unstuck, I make it my business to review the fundamentals of the investment system I follow—and to look for specific ideas about what I could do better. If I haven’t found a new partner I can work with, maybe it’s time I did lunch with some long-time partners. If I want to expand my reach, maybe that lunch invitation should include a request to bring a friend.
I also seek regular interaction with other sophisticated investors. That interaction expands my understanding of current and future market realities. You can do this by attending one of the upcoming Real Estate Investment Networks ACRE™ (Authentic Canadian Real Estate) Programs coming soon to a city near you. If your frustration stems from getting JV deals done, your attitude adjustment could begin with reading Real Estate Joint Ventures: The Canadian Investor’s Guide to Raising Money and Getting Deals Done .
That’s it for now, leave your comments below—and remember to always stick to the fundamentals of sound investment! For tips on what to do if a partner wants to leave early, tune into my next entry.
About the Author
Russell Westcott: Canadian Real Estate Investor, Educator, Researcher, & Best-Selling Author. He is the Vice President for the Real Estate Investment Network™ (REIN™), Canada's leading Real Estate Education program. Visit www.jvsectets.ca for more information