How to Create the Right Real Estate Investment Mindset

In the middle of 2023, Canadians are asking very serious financial questions. Will the Bank of Canada continue to raise benchmark interest rates? How high will the inflation rate rise in the coming weeks or months ahead? How much will the cost of living continue to impact people?

Against the backdrop of so much economic uncertainty, one thing is certain: the only way to accumulate wealth is to take control of your own future. When you invest time and energy into achieving personal financial freedom, you lay the foundation and the building blocks to create generational wealth for yourself and for your family.

So how do you get started on this transformative journey? It all begins with creating the right mindset, an inherent belief within yourself that you will become financially successful.

How real estate investing builds generational wealth

To get into the right mindset, you need to start at the beginning. When making any decision about your life, one of the most fundamental questions you need to both ask and answer is why. Why are you making this decision, and what will you get out of the decision?

When you invest in real estate, you’re choosing to buy, lease, rent, and/or sell pieces of property to make a profit. Real estate investments deliver healthy cash flow, tax breaks, equity, competitive risk-adjusted returns, and a means of withstanding rising costs of inflation.

As you become more savvy, you learn how to negotiate acquisition deals at low prices. You’ll also learn how to flip those purchases and re-sell them on the open market for higher valuations than what you paid for the initial deed for the property. You can earn value in both buildings and the land they dwell upon by making the right moves with your investments.

What is a real estate investing mindset? 

When we talk about creating the right mindset, a lot of the work is about letting go of old ways of thinking. Many people consider getting involved in real estate investing, but they succumb to reasons not to move forward with those plans. These reasons can range from:

• Concerns about property values
• Panic over rental tenant issues
• Taking on too much mortgage debt
• Lack of time to learn about real estate
• Self-doubts that real estate investing can’t work for you

By shifting your mindset and believing in your own abilities, you can learn how to let go of those self-doubts. When you internally believe that you can make money from real estate investing, you’re able to embrace new ways that help you generate life-changing wealth.

Part of building the right mindset is doing the right research

The best decisions one can make in their life are the ones that have been vetted through detailed rigorous research. Real estate investing is no different; the most successful real estate investors have done their research, which informs the mindset they need to achieve success.

Research begins with understanding the fundamentals of the Canadian housing market. You want to know things like average list prices, average selling prices, how prices vary from region to region, province to province, etc. Once you have an idea of how the market conducts itself, you can figure out the best way to enter the market and grow your own real estate portfolio.

Once you’ve identified the fundamentals of the housing market, you’ll next want to look into the investment options you have on the table. This can include things like:

• Real estate investing theories and concepts
• Differences between residential, commercial, and industrial investments
• How to select the right market to make an investment
• How to profit from single detached, duplex, triplex, multi-family, and other properties
• Ways to qualify for mortgages or other home financing plans
• Tips on how to use other people’s money (OPM) to grow your investments
• What do you need to know about site plan approvals (SPAs)
• What is the value in development land wholesaling
• And so forth

When you do the research, you expand your mind with new helpful knowledge. Those new insights will help you develop a game plan for how to apply the knowledge and use it to purchase the right properties that will yield the greatest returns in your real estate portfolio.

Mindset + knowledge = action!

Once you’ve shifted your mindset, you learn how to embrace opportunities. When you have that mental fortitude, an inherent belief that you can be successful at anything, you develop an inner drive to transform that mindset into reality.

Upon acquiring real estate investment knowledge, you acquire everything you need to become a successful real estate investor. You can take those theoretical concepts and develop the skills that are necessary to negotiate large portfolio deals that will build your real estate empire.

These two approaches are the foundational pieces to become a successful real estate investor. Mindset, paired with knowledgeable research, equals an untapped opportunity to master the art of real estate investing, and build your personal empire that will accumulate generational wealth for you and the people you love.

Training you to develop the right mindset is what you can expect by working with WealthGenius. Contact us today to shift your own mindset and start developing your own real estate investment empire.