The economy of 2020 was driven largely by emotions, namely hysteria and irrational exuberance. The year 2021 shall undoubtedly be just as emotional based, with higher doses of exasperation as the calendar flip does not magically make man-made problems go away. The key to real estate success is to first ensure that the business frame of mind is fortified, then positive intentions set to take advantage of cascading crises, turning lemons into lemonade.

Someone who is financially rich is an owner, not just a consumer. They always pay attention to ROI return on investment, not just personal utility and enjoyment. Business sense, work ethic, mission, propose and goals are the foundation of real estate success. Long terms results come from long-term thinking. Mindset makes wealth, and the wrong mindset can keep us from wealth.

The biggest mistakes come from being desperate, scared, rushing toward something out of fear. Virtuous ambition is a huge positive, while base greed is a move towards major mistakes — panic and mindless actions lead to huge mistakes, such as buying into con artists and fraudsters. Be extra cautious when the prospect of quick money rears its greedy head. Trusting a friend of a friend to find lucrative deals is best viewed with skepticism. The majority of super successful people have made it incrementally, because one’s character must be built while the fortune is built. A lack of character and wisdom causes the wealth to be lost. A house of cards built overnight collapses quickly, but a real estate empire built slowly on a strong foundation can last for centuries. 

Trading time for money is OK for those just getting started, but much greater wealth comes from being focused on growing ownership of productive assets that provide income for a lifetime. Savings accounts, investment accounts lead to compounding interest, a magical function of wealth creation, an income for life without working.

Putting all eggs in one basket is too risky for most of us. Losses are a necessary part of learning, part of the success process, but most people need diversification to prevent massive, unacceptable losses.

Creativity and resourcefulness can make up for a lack of initial investment funds. Provide innovative solutions to those who have money. Execute on ideas. Adjust and improvise while on the path of success. 

Market crashes offer some of the greatest opportunities to get into great deals and to create massive wealth. Nearly 100% of bear markets lead nearly 100% of the time to huge bull markets. Because public attitudes and discourse are not on the right track for success, the real estate markets takes years to unwind, and we’ve not yet seen any substantial capitulation in the stock markets, we can expect mostly increasing bear markets in 2021, to be slowly replaced by growing patches of bull market booms. Success in 2021 requires a mindset like a calm island in a stormy sea. Foresight of exploding technologies can be a great pairing with real estate. Bitcoin shall continue to be a better pure investment move than real estate for many more years. Enjoy the process. No matter what, it really is about the journey. 

Check out 15 things that poor people do that rich people don’t.

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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Realty Source Inc, BRE 01889449, MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LAcondoInfo.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.