The real estate investing business is filled with personalities. As you spend time at meetings, clubs and closings you will come across several different types of investors. Each of them has their own unique characteristics that separate them from the pack. What you will see is that oftentimes the ones with the best personalities are also the best investors. It is no secret that your attitude directly influences your actions. By being around positive people with the right mindset it will help you achieve your goals. Conversely being around people with the wrong personality will sink your business quicker than almost anything else you can do. Here are the top five personality types you need to avoid.
- Overconfident. Being confident in anything is a good thing. However there is a fine line between confidence and arrogance. Confidence is knowing you are good without having to tell everyone. Arrogance is letting the world know your ability, even if it may not be as good as you think. In the real estate world nobody wants to hear how many deals you closed and all the great connections you have. Even if you are trying to gain favor with a potential contact this isn’t the best approach to have. People want to work with others that they have a personal connection with. There are a lot of investors who can get the job done. What often separates investors is the manner in which they present themselves. If you surround yourself with people who are constantly touting their abilities eventually this will wear off on you. Without even knowing it you will develop an overconfident personality that people will run away from. A little confidence is fine but you never want to take it too far.
- Fear. There will always be a segment of people that will tell you what you shouldn’t do. They may have had a bad experience years ago and are forever scarred. Every investor they talk to they let them know just how bad their plan is or the worst case scenario with what they are trying to do. While it is smart to recognize the downside with every action you also can’t be consumed by it. There are risks with every type of marketing or property you plan to buy. You can’t let a fear of action take over your business. Even if you fail or if something doesn’t work you will learn more from that than anything else. How you face fear will shape your business and often determine which path you take. It isn’t always easy taking a leap of faith but it is important. Don’t listen to people who never took a chance and run their business based on fear.
- Over Thinker. Most investors recognize the importance of due diligence. It is the determining factor is deciding which deals to take and which to avoid. The more properties you look at the more you realize that there is no such thing as a perfect deal. The ones that appear great always have some underlying issue with them that could potentially become a problem if things don’t break right. This doesn’t mean you should harp on them. As long as you recognize the potential issues and understand the downside you should be confident moving forward. There will always be potential partners or contacts that are in search for a flawless, perfect deal. They will try to talk you out of deals that have little to no issues. They will delay making decisions and try to get you to see things your way. This doesn’t mean you should jump blindly into new deals but you shouldn’t overthink everything either. Sometimes a seller is simply selling at a discount because they want to get out of the house quickly. Sometimes a fellow investor really has too much on their plate and wants to pass a deal along to you. Always consider every scenario but don’t overthink it either.
- Easily Agitated. Real estate investing can be very intense. There are times you need to get things done to secure a deal or push it to closing. What works for a fellow investor may not work for you. Not everyone can, or should, be the aggressive type. How you act during the pressure situations in a deal will help build your reputation. If word gets out that you yelled at a paralegal or were demeaning to a mortgage broker people won’t want to work with you. The same is the case with the people on your team. If your contractor or attorney is aggressive and loud this is a direct reflection of you. There is always to a way to balance out getting what you need done and doing it in a respectful, courteous tone. Stay away from people whose conduct you wouldn’t stand for in a non-business setting.
- Know It All. For every investor who will tell you what you shouldn’t do there are three more who will tell you what you should do. There are many people in your network who know a little bit about the real estate investing business. This doesn’t mean that they have the best strategy for you. You should listen to as many opinions as you can but only act on the ones you are comfortable with. There are people who are only armed with a little bit of information. Most people acknowledge that a little information is often the most dangerous. There are no two ways of doing real estate just like what works for someone else may not work for you.
You are a byproduct of the people you surround yourself with. Taking it one step further the personalities of these people are a direct influence on you. Avoid as many negative people in your business as possible.
