Billionaire Mindset When Investing In Real Estate

The stock market is filled with winners and losers. In fact, the stock market would not exist if it only had one or the other. The brightest stock traders often make their biggest wins on buying losers (stocks) and selling them as winners. Have you ever received a stock tip or been tipped on an acquisition that is going to happen? If you are a regular trader I am sure you have received a tip or two and have probably been on the receiving end of a win and or lose depending on the quality of the tip. I personally haven’t traded enough stocks to have established a relationship where I received tips. By the way, I believe that is called insider-trading, which is illegal, just ask Martha Stewart. She spent 5 months in jail back in 2004 for lying about a tip she received to dump a stock that she was heavily leveraged in before it crashed.

But, just for fun, let’s say I was given a tip on an up and coming acquisition from a source that was 100% reliable and it involved two prominent companies, RE/MAX and Google. Remember, my source is 100% legitimate and it is essentially a done deal. Google is going to buy RE/MAX for a premium price! How much money should I put into RE/MAX shares? Every last cent I have! It is a guaranteed win, an absolute no brainer!

Ok, let’s change the scenario. I have hunch that RE/MAX stock is going up. I don’t have a reliable source but I feel in my gut it is a good call. After all, I am a RE/MAX agent; I have met the founder of RE/MAX David Liniger, and it is the mandate of RE/MAX International to continue to grow the global brand. Is my purchase of RE/MAX stock a guarantee win? No! If I had $100,000 to invest, how much should I invest? 50%, 25%, 10%?  Probably 10% or less. For most investors this is the case. Spreading risk over many stocks makes it feels safer and it is also what many are told to do. It is called…diversification.

Screw diversification! Billionaires don’t become billionaires because they are only committed to 10% of their idea or company. Their entire portfolio is in what they believe in. They are 100% committed to ONE stock-their OWN. They didn’t become billionaires because they invested only 10% into their idea or company. Two thirds of the 1300 billionaires in the world are self-made and most are over 60 years of age, hmmm, still time for me… A survey by Forbes of billionaires found 3 common traits. They were optimistic about risk, curious but focused, and highly resilient, hardworking, and have a strong perseverance to win.

Do you have a billionaire mindset when investing in Real Estate? Are you 100% committed to your personal real estate stock? The successful real estate investors that I know have the “billionaire mindset”. They are 100% committed to their stock! Their real estate stocks are called fix and flip, RTO, buy and hold, multifamily, commercial, development property, MIC’s, and land assemblies are a few of the stocks. However, remember, screw diversification! Yes, billionaires are curious, but focused. I caution you against filling your stock portfolio with too many different stocks, be focused. It is never too late to become a “billionaire minded” real estate investor, two thirds of the world’s billionaires got to be billionaires by starting their own companies and working extremely hard to growing them. Who wants to be a billionaire?

Fall is here, and with fall comes change. The days become short, leaves turn a beautiful color of red, yellow, and orange, and the air becomes cool. Summer holidays are over, children are back to school, and the real estate market swings back into gear. This September was different with many of the sub-markets experiencing a strong sellers’ market. Again, Langley is the strongest sub-market in the Valley, with low inventory and strong sales. Townhomes throughout the Fraser Valley showed the most strength with 8 of the 9 areas experiencing increase in the sell through rate over the previous month, followed single family homes, and condos bring up the rear.

If you would like to receive a copy of the statistical market report contact us here. Looking to tour cash flowing properties?  Click here to sign up for our next Investment Bus Tour!

By Randy Dyck
Personal Real Estate Corporation
604-807-4366 or randy@eximus.com

STR (Sell Through Rate) Formula = Sales ÷ Active Listings + Failed Listings + Sales  ​