Welcome to the 138th episode of the Alternative Investing Podcast!
In today's episode, I'll share the three biggest lessons you need to learn if you want to model how successful investors think and act.
If you're a business owner or an investor who wants to learn how to increase your odds of achieving your financial goals faster, then make sure to listen to this episode!
Do you know what’s one of the biggest challenges most investors face?
It’s the fact that they can’t win unless the market is rising. In other words, they lose money when the market goes down.
As investors who want to build wealth better, how do we avoid making the same mistake, whatever the market condition?
My Alternative Investment Journey
Let me tell you a quick story about my journey.
In 2009, I had amassed a reasonably good property portfolio but struggled to decide what to buy next and who to trust for advice. All the advisors I talked to seemed to want to help me, but I noticed that they were being paid for the referrals they made.
I was starting to lose confidence in them and wasn't sure what to do next because I was close to reaching my borrowing limit.
Then, I discovered the world of alternative investments backed by real property, which changed everything for me. I saw that if you had access to the right investments and networks, it could be life-changing.
But, like everyone, I made mistakes and had some setbacks at first.
As I gained experience, my success rate improved, and I haven't looked back since. I shortened the time it would take me to achieve financial freedom from 25 years to just a few short years.
Back in the day, when I was at home with my young boys, I wanted to find a better way to invest. Like everyone else, I was searching for a reliable source of passive income to give me the financial freedom I desired.
I’m sharing this with you because my results improved significantly when I stopped investing on my own and instead worked collaboratively with others. When I connected with people who had the results I wanted and were willing to share their strategies with me, it greatly shortened the time it took to achieve my goals.
Three Options That People Have Right Now
In the current situation, there are three options that I see people having:
Option 1: Ignore the potential problems and hope for the best, wishing not to lose too much wealth if things go wrong.
Option 2: Keep doing what has worked in the past and hope that any problems will be minor.
Option 3: Upgrade your skills, thinking, and connections to find opportunities to protect you from volatility and help you grow your wealth.
Here's my thesis: There has never been a better time in history to collaborate with the experts, level up your investing game, and control your decision-making.
I'm fed up with hearing about people who worked hard to earn their wealth but then lost a significant portion because they trusted someone else to make investment decisions for them. These people had no control over the decisions and were at the mercy of the markets.
They just hoped that the person they entrusted with their money would make good decisions for them.
Now, I want to emphasise that we need to find better quality investments that generate strong, predictable cash flow. The traditional idea that we work for 45 years and then retire is no longer realistic for many people.
Instead, we should work to create financial stability and independence so that we can live the lives we want and positively impact the world.
Another thing to note is we should also consider investments that are not solely dependent on economic booms.
Even if these investments don't offer extremely high returns, like 8–12%, they can provide consistent and reliable income, ultimately allowing you to achieve financial freedom.
The Three Lessons to Learn If You Want to Be Rich
So the most important lessons to remember are this.
First, if you want to build wealth, it's important to start making your own investment decisions and finding people who can help you.
Look for experts with a strong track record, good ethics, and a willingness to share their knowledge. Because by working with these people, you can learn how successful investors think and act.
Second, invest in education.
Unfortunately, many people are looking for a quick solution and don't want to put in the effort to learn and make informed decisions.
They just want to hand over their money and hope it increases in value without putting in any effort.
By all means, there are better approaches than this. As an investor, the most valuable thing you can do is invest in knowledge first.
Most individuals are too eager to make investments without fully understanding what they're doing, especially when it comes to real estate.
They may be in a hurry to start and not fully consider their options.
This can lead to poor investment decisions, such as giving money to a buyer's agent or investing in something without fully understanding it. By investing in education and learning more about investing, you can improve your decision-making skills and make better investment choices.
For example, a young woman I knew came to me wanting to buy her first investment property, but she only had a small amount of capital.
I showed her that if she waited a little longer and saved up more money, she could buy a higher-quality property that was more likely to increase in value rapidly.
This would give her a better overall return on her investment, even if it meant waiting an additional year to make the purchase.
She followed the advice, and as we later compared the outcomes of her two potential investment decisions, we saw that investing in education and waiting to make a better-informed decision paid off.
So if you want to improve your knowledge of investing in 2023, consider learning more about different investment strategies, especially alternative investing.
Third, remember the difference between being a healthy sceptic and being cynical.
My rule is to trust but verify. It takes time to get to know and trust people, and it's important to do everything you can to increase the likelihood of a positive outcome.
Let me share with you some definitions I came across.
A cynic is a negative person who distrusts others, while a sceptic questions or doubts all accepted opinions.
Healthy scepticism is a balance between trusting people and thoroughly evaluating opportunities.
It involves asking questions and doing the work to determine if an investment meets your criteria and aligns with your goals and risk tolerance.
Healthy scepticism helps keep you safe and prevents you from making impulsive investment decisions based on emotions.
Recap of Three Lessons
So, here are three key takeaways from today's discussion:
To conclude, you have to ask yourself, "Do I want my money to grow in the next five years?"
If yes, then it's important to take action now.
Now is a great time to seek out experienced dealmakers and trusted advisors who can help you make smart financial decisions and guide you towards financial success.