Mindset Shift for Real Estate Investors

Mindset Shift for Real Estate Investors

We need a big mindset shift as Airbnb investors. Because with this mindset I’m about to share with you, you risk losing tens of thousands (if not millions) of dollars across your investing career.

Too many investors are coming in with the idea and goal of wealth. Of cash flow. Of building a legacy and an amazing portfolio.

But when things go south, they justify it with “well, at least I’m getting a vacation home for free.”

I’m here to say not to do that. Don’t do that to yourself, and here’s why.

Because that’s not the real worst case. If we accept breaking even, the worst case is much worse.

We cannot accept breaking even. 

In the video, I share the various flaws with this line of thinking.

A big problem I see is that most people don’t value their time like they should.

Investing takes a LOT of time and you should be compensated for it.

But there’s more to it. In the video, I share a thought experiment of where this type of thinking leads.

And I share two ways for you to break out of this thinking and create the wealth and cash flow you’re really after.


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Expand Transcript

Attention real estate investors, I cannot tell you the number of times that I’ve heard someone tell me that it’d be okay if they broke even on their property that they use his short term rental, because at least now they get to use it and they have a free vacation home. Yeah, that’s true, it is pretty awesome to have that side effect when you’re investing in short term rental properties, that worst case scenario for breaks even you have a free vacation home, but you’re not really thinking about your time. The problem I see with this is that so many investors go out and buy short term rental properties with the intention of using their money to build wealth, build cash flow, to succeed long term financially, they’re not looking to just get a free vacation home, they want to build for their future. And they go in with that as their intention. And then they justify poor performance by saying, well, worst case scenario, I’ll get a free vacation, I’ll not have it wrong. Worst case scenario, instead of paying with money for your vacation home, that you could just rent for a couple of weeks out of the year, when you want to use it, you’re now paying with all kinds of time, think about it, you had to put time into finding the right deal. And analysing all kinds of deals into putting in offers into closing on the property furnishing the property, setting it up managing it, well, that time is valuable, your time is worth something, try to calculate it figure out how much you actually make per hour at your job and figure out how much your time is worth. Well, do you really want to be investing that much time into just getting some free vacation? Well, no, probably not. And yeah, sure, you’re also going to be making a return on your investment through the principal pay down the mortgage building equity over time and the appreciation of the property? Yeah, absolutely. But you can’t access that money. It’s not cash that you have in your hand in your pocket right now, you really want to be focused on the cash flow that your property is generating, because that’s the money that you can actually go in and reinvest and get compound growth out of you can go and buy more properties, keep on growing things, or just use it to supplement your income. If you want to retire early. If you want to just increase your income and increase the amount that you earn. Well, cash flow is the way to do that. And so you want to try as much as possible to avoid being overly positive about things. Yes, the worst case scenario is certainly not that bad. And I think that perspective is super, super helpful to have. But at the same time, you also want to make sure that you properly identify issues that are causing you to perform poorly, and that you don’t go and get yourself into bad deals, just because you’re justifying the worst case scenario isn’t that bad. The reality is that the difference between a property that generates no money and just breaks even every year, and a property that generates $60,000 A year is going to be massive, long term. Think about that over 10 years that $600,000 That that property generated, the you can go and spend on other things, or that you can be reinvesting that’s probably a property every two years that you can go and get with this property that sharing 60,000 as opposed to it’s breaking even. And so there’s two things you really want to do to make sure that you don’t fall victim to this flawed mentality, this flawed way of thinking. First off, you want to make sure that you’re disciplined about finding a really great deer deal, don’t get emotionally invested into properties. I see you’ll make this mistake all the time when they come across a property that they absolutely fall in love with. And they get really emotional about it. And they end up making emotional rather than analytical and data driven decisions to purchase that property. Then of getting swept up paying too much for the property overlooking some red flags with the inspector going by that says, hey, there’s structural issues here. And they just kind of ignore it because they love the property. You really want to make sure when you’re buying the deal, that’s when you’re making all your money. So you really want to make sure that you buy right, be disciplined, don’t buy anything emotionally, buy it analytically buy it as an investment. Look at it, like buying a business buying a stock. You don’t want to buy that with your emotion, you want to do your due diligence, you want to do your research and buy the right property. Next, you want to make sure that you’re aggressive about making sure you perform really well. If your property isn’t performing well. Make sure you troubleshoot, don’t get lazy and justify and say well, it’s not that bad doesn’t matter that much. Spend the time because here is where your time is really going to be valuable. With just 30 minutes a week of pricing optimization and making some small tweaks right here, you’ve got a lot of leverage. So you’ll be able to make a really great return on your time with just 30 minutes a week invested into optimising performance, you want to make sure that you take the time to do that and get aggressive, don’t accept bare minimum don’t accept breaking even as an acceptable standard. That should be your worst case scenario. If everything goes terribly without everything really just hits the wall. That’s your backup plan out your worst case scenario. But you shouldn’t just accept that worst case scenario because it’s not that bad. It’s amazing that you can protect your downside with short term rental investing so much so that the worst case scenario really isn’t that bad. But that doesn’t need to be an excuse to just allow that for performance. If you’re not performing well. Reach out, get in touch with us check out our trainings, make sure that you take the necessary steps to get out property performing as well as it could be, if you’re not sure whether your property could be performing better or not, go check out air DNA, check out all the rooms go and actually look at how other properties in your area are performing. And if there are other properties nearby you that are performing way better than yours is, and you’re not at least in the top 25th percentile of properties, then you know, there’s ample room for improvement, there’s something that you’re not doing that other hosts in your area are. So you need to take the action spend the time to actually get that performance boosted. Again, for most property owners, this is going to equate to 30 minutes a week, and the payoff is going to be literally 1000s of dollars every single year. So it’s really going to be well worth your time. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training linked in the description down below as well, there’ll be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, it’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. I hope this has been helpful to you. This is just a mistake and a flawed mentality. They see investors having all the time with short term rentals because hey, let’s face it, it’s an awesome asset class to invest in. And it’s really easy to justify why the worst case scenario really isn’t that bad. But you don’t want to use that as a cop out and as an excuse to just accept that poor performance and justify it over and over again, especially because the one thing I didn’t mention here is that as you start to grow your portfolio, that gives you a lot more risk exposure, if you adopt this mentality, when you’re growing your portfolio, initially, you may only have one or two properties. And so you know, if you have a couple that just aren’t performing that well, and they’re just breaking even, it’s really not the end of the world. But then what happens if things take a turn for the worst in the economy or the market that you’re in? Well, suddenly, those things are going to be actually costing you some money to carry on. And so you don’t have a buffer set up and they’re not really making any money. Now they’re actually losing a bit, well, still probably not that big of a deal, because you can afford to keep them and justify it that, hey, I’m just paying to have a vacation home. But what happens if you’ve got five of them, or 10 of them, that can start to really be stressful for you financially and potentially just wipe you out completely. Whereas if you have five or 10 properties, or even one or two, and they’re generating $60,000 a year and then things take a turn for the worst, and now you’re making only $30,000 a year per property, well, heck, that’s still a really good place to be, there’s not going to be additional financial burden or stress associated with that, you’re not going to be at risk of having to be forced to sell the property. So you really do mitigate a lot of risk long term by making sure you’ve got room margin for error. If you’re already at the minimum acceptable standard. Then if things drop any lower, you don’t have room to move. So make sure that you adopt this mentality you get aggressive make sure that you’re being disciplined, getting the right properties and making sure they perform as well as possible, not just letting yourself justify that the worst case scenario isn’t that bad. If you have any thoughts about this video, let me know in the comment section down below any questions anything you want to share. Also, if you liked this video, please consider giving it a thumbs up it really does help me out tremendously with growing this channel and getting these videos in front of more people. So if you did like the video, make sure you drop a thumbs up, hit the subscribe button as well. If you’re new here and you haven’t subscribed to the channel, or you’re old here you watch a whole bunch of videos and you’re not subscribed, which I know a lot of you guys are because I look at my analytics and I know that a lot of you guys that watch these videos are not yet subscribed. So my question to you is, what the heck are you doing? We post two new videos every single week talking about everything you need in order to succeed with Airbnb, whether you want to manage properties on Airbnb for other people. You want to host your own space where you want to invest in properties and build wealth and cash flow investing and actually purchasing Airbnbs so if you want to learn more about that, make sure you hit that subscribe button, check out our videos every week. Thanks for checking out this one and I’ll see you in the next

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