In a previous article I revealed the biggest killer of wealth and how it hinders the investing process. I also featured a real life example which ultimately explained what not to do and how to avoid falling into the same trap.
To follow up and go one further, I thought it’d be helpful to unleash the killer combination of the three qualities that make a successful investor.
Funnily enough, the same day I met with my client featured in my previous article, I also met with Peter and his wife whose investment situation I’ll feature below.
It couldn’t have been more of a juxtaposition.
Real life example
Peter and his wife have been clients of mine since 2010 and during the past four years they’ve built up a healthy property portfolio. That day, we assessed the great cash-flow and capital growth they’d achieved in those four short years and discussed plans to add more properties into their portfolio.
After having no investing experience or owning any type of real estate, they now have a portfolio worth $1.2 million and a net position of half a million dollars.
They are very modest income earners with a combined income of only $80,000 yet due to three essential qualities, they’re now also receiving $74,000 in passive income per year and are in a position to continue on their investing journey.
The killer combination
These qualities are not front page news, nor are they anything new, they’re simply common sense. But if that’s the case, why do so people many lack them?
Below, in no particular order of importance, are the three essential qualities I see successful clients commonly possessing.Good financial management
This can be in the form of savings, weekly budgeting, mortgage repayments or awareness of spending. Possessing good financial management will enable you to get ahead regardless of your income, as can be seen in the example above. All it takes is putting away $300 a week for one – two years depending on your starting point and there’s your deposit. Self-discipline and holding yourself accountable for reaching your financial goals is what makes the difference between a successful and unsuccessful investor.
There are two kinds of people in this world – those who have a plan and those who don’t. Yes, life doesn’t always go as planned, but then again, planning for the worst case scenario is better than not planning at all. This directly applies to investing. You need to plan your search criteria, your entry and exit strategy and your portfolio goals. Without direction, your efforts may be wasted in large proportions. Just having the right intentions will not enable you to reach your goals. You need to plan a clear direction and the specific action you need to take in what time frame for you to hit the mark. So this leads into my final one.Taking action
Your property portfolio is never going to grow if you don’t take action – it’s as simple as that. You are responsible for your success. This is definitely an essential quality in the way of moving forward, and is crucial to the momentum of your property investment journey.
If you already possess these qualities, I commend you and hope that you use them to your advantage. If you’re lacking in these areas, I urge you to make some changes so that you can start laying the foundations for a successful property investment portfolio.
Click here to read my previous article where I uncovered the biggest killer of wealth and feature a real life example.