Most people do not have the right mindset to invest in commercial real estate and that’s why they don’t own any. In fact, of all the difficulties with becoming a commercial real estate investor, arguably the most challenging is the replacing of the wrong mindset with the right one. In this post we’ll discuss what the wrong mindset is and what the correct mindset is when it comes to investing in commercial real estate.
What is the Wrong Mindset for Investing in Commercial Real Estate?
Before we share what the right mindset for investing in commercial real estate is, we would like to share what the wrong mindset looks like. This incorrect mindset is focused on the cost of something instead of the benefit. People with this mindset focus on the affordability of an asset rather than on the benefits investing in commercial real estate can bring. They believe that spending money will result in less money. This results in a belief system that only the rich can afford commercial real estate.
This negative mindset, often called the customer mindset, prevents people from taking the opportunity to invest in tangible, high return yield investments. A person with the customer mindset almost immediately counts themselves out of a potential deal, and is intimidated by the cost of investing in commercial real estate. In order to reap the benefits of commercial real estate investing, we have to breakthrough this customer mindset.
Where does the wrong mindset come from?
Several factors can play into why potential investors have this customer mindset. The first source is likely from their upbringing, and has been ingrained since youth. Another source of this customer mindset is society in general. Society, and companies, spend billions of dollars to tell us that we need them for society to continue advancing, thus creating reliance, or the belief, that only major companies have the power for change and investing. The final source is personal thought process. A person with a customer mindset will discount themselves because they are conformers, believe in the status quo, and disqualify themselves from becoming commercial real estate investors.
Do You Have the Right Mindset to Invest in Commercial Real Estate?
For most people, the answer to this question is no, which is exactly why they do not own commercial real estate. There are many challenges involved in purchasing your first commercial property, but the biggest obstacle you must overcome is the aforementioned customer mindset. The right mindset to have in commercial real estate investing is generally referred to as the Entrepreneur Mindset. This mindset is focus on return on investment (ROI).
A person with an entrepreneur mindset will ask themselves four questions whenever an opportunity for investment presents itself. They are:
- How can I acquire that property?
- What funding sources would love to be part of my deal?
- What benefit would I get out of buying this property? Will it get you closer to retirement or the ability to leave your job? There should always be some sort of benefit with any deal you do.
- What actions do I need to take to meet my investment objectives? Whether your objective is to leave your job, build a retirement plan, or even ministry or charity work, there always needs to be massive action taken to meet your goals.
People with this entrepreneur mindset believe in themselves, see themselves as qualified investors, and are willing to take calculated risks when it comes to commercial real estate. They also know when to partner with other commercial real estate investors in order to find, buy into, and develop commercial properties.
Casey Development, Ltd: Commercial Real Estate Developers in San Antonio
Casey Development, Ltd. are the commercial real estate developers San Antonio, Austin, and New Braunfels commercial real estate investors turn to for guidance and expertise in commercial real estate. If you are considering purchasing a commercial real estate property in Central Texas, then contact Casey Development, Ltd. immediately to learn more about our commercial real estate development services.