Do You Treat Real Estate Investment As A Business?
“Investment is most intelligent when it is most business like,” said Benjamin Graham in his 1949 now-classic ‘The Intelligent Investor.
Coming from someone who’s recognized as the father of value investing, the idea is definitely something that every real estate investor must ponder on harder.
Yes, you like real estate investments. BUT do you treat it as a business?
The Shift In Mindset
It’s not as much about “calling it” just to add to your resume. When you treat your property investment gig as a business, it brings a significant shift in mindset – a shift that’s often essential on the way to build a high-value portfolio.
Instead of assuming it to be just like a hobby, you take it much more seriously. You get more perceptive of market movements, your profits, and losses. And this eventually navigates you in making much more informed decisions.
What Many New Investors Do
Among many silly and critical mistakes, what many new real estate investors do is treat their investments as pass-time that doesn’t even make it to their priority list.
Not only do they not spend time in consuming relevant content and understanding market trends, but they also often – following the crowd – take decisions rather recklessly.
Needless to say, when treating real estate investment passively, the outcome fails to match the expectations, usually leading to significant losses.
How To Treat It Like A Business?
This shift in approach FROM “pass time” OR “hobby” TO “business” demands time. You must dedicate a small amount of time every day in consuming news, reading charts, analyzing the market and communicating with other real estate investors.
Small daily habits like this, over a stretched period, will help you grow as an investor.
Time commitment will also make your investment decisions more business-oriented where each of your action will be focused entirely on maximizing the returns.
In addition, hiring one of the best real estate companies in the world can further push you to take investment much more seriously.
A Big Difference Maker
Just like any “real business” that strives for optimum profit, once you start treating real estate investment as a business, you would dramatically find yourself in-line making rewarding, risk-averse decisions.
Remember, investing in commercial property, as well as residential properties, won’t deliver you good returns unless you are really calculative, educated and serious about your decisions.
So, if you don’t take your investment as a business, start today. A basic shift in mindset can be the biggest difference-maker for your portfolio.