Understand the golden rules of success
December is a time for reflection on the year that has passed. Also take time to reflect on this: real estate is your answer to acquire the wealth you’ve always dreamed of. Just ask Warren Buffett. Earlier this year, Buffett said on CNBC that real estate is the best investment of all at the moment. This statement holds true, particularly now in the US, and also right here in South Africa.
Buffett said: “Single family houses bought on a distressed basis now, and financed over a long term at current interest rates, may be the best investment of all. I mean if I knew anything about real estate and I was just working with a relatively small amount of money and I was seeing distressed houses around me that I could rent out, I would buy them and put on a 4 percent mortgage for 30 years and in three or four or five years, I’d probably sell it at a very substantial profit relative to my equity.”
So, the question is this: Why have most of us not gone out and followed Buffets advice? After all, he has the reputation of being one of the most successful investors to walk this planet. When the world’s current No.1 investor says "invest in real estate", why do people start finding excuses why they cannot invest, instead of jumping at the opportunity?
Too good to be true
Most people who read about real estate investment don’t believe it is possible. Even some of our readers still believe it is too good to be true. This is despite the fact that many of our readers also read success books, attend events and seminars and educate themselves about improving their lives, whether from a financial or personal perspective. So why have not all our readers achieved the success and wealth they want?
Only 2% of people will become successful
The great Napoleon Hill, author of “Think and Grow Rich”, once said that only 2% of those who learned his now-legendary success principles actually used them to become successful.
Here's why: even when you know what to do, and even if you really want success, there are many ways you may unconsciously sabotage yourself. You may procrastinate. You may quit if you experience a setback. You may unconsciously make bad decisions, or attract people who take you off-track; instead of attracting those who can help you achieve what you want. You may believe things about success, about yourself, about other people or about money that causes you to get in your own way. As long as your behaviour is generated by an unconscious part of your mind, you may have trouble taking the successful actions you need to take, even if you know what they are, and want to take them. Sadly, 98% of people still do this.
What can you do?
What is the most potent, most effective way to get rid of these unconscious, self-sabotaging demons? Meditation can help you become aware of how you sabotage yourself mentally. Don't be afraid to learn. Knowledge is weightless, a treasure that you can carry easily. Read our cover story on page 12 and discover what you can do as an investor to use your knowledge for the best results.
Should we be looking elsewhere?
The negative publicity generated by the regular strikes protests in South Africa, as well as the issue of land redistribution, continues to have a negative impact on our economy. Many investors feel uneasy about the unrest and are seriously starting to look abroad for investment opportunities. Investing in certain areas offshore seems to offer more stability. Some South African investors are also considering a Plan B and are investigating residency options in other countries.
Whichever way you believe is the way forward, these 7 Golden Rules for Success will help you gain more knowledge and become more successful.
7 Golden Rules for Success
Mentor with the wealthy
Develop empowering beliefs
Find your passion so that you can add more value
Set goals – think big but underestimate your result in 10 years
Work smart not hard – do things that make an immediate impact
Tithe - giving back is better than taking
Have fun along the way
Real Estate Investor