There are so many reasons to love a routine. Routines are comfortable. Routines are safe. Routines give us a sense of control in this ever-changing world. However, relying too heavily on a routine can come at a cost.
While routines can streamline our busy schedules —from our personal lives, businesses, or investment strategies—they rarely account for setbacks and don’t always leave room for adaptability. The world, and particularly the world of real estate investing, is turbulent. New challenges and opportunities arise every day. Learning to adapt to these challenges, to be flexible, and to break our routines is a crucial step to living, working, and investing successfully.
We need to adopt a growth mindset.
A growth mindset can lead to improved relationships, better business practices, and even help lead to better decision-making for investors. Let’s explore how adopting a growth mindset can lead to long-term success in multifamily investing.
Understanding the Growth Mindset
What is a growth mindset? The concept of a growth mindset is based on the studies of Stanford University professor Carol Dweck. Instead of the idea that people are born with certain talents, a growth mindset is the belief that a person’s abilities are improved through effort, learning, and persistence. In short, hard work pays out. Dweck’s studies illustrated that people who believed their abilities, talents, and intelligence could be improved with hard work – i.e. people with a growth mindset – often achieved more and outperformed those who believed their abilities were more or less set (a fixed mindset).
Beyond that, an individual with a growth mindset acts differently when confronted with adversity. They tend to attack challenges, embrace defeat, and adapt to change. Adopting this mindset means taking a more positive and mindful approach to challenges: unexpected changes are opportunities to shift tactics; setbacks are opportunities to grow. To quote Professor Dweck, those with a growth mindset should, “Love challenges, be intrigued by mistakes, enjoy effort, and keep on learning.”
5 Key Elements of Developing a Growth Mindset
Those who wish to develop a growth mindset should start with understanding the 5 key elements:
- Intelligence can be developed
- Embrace Challenges
- Persist in the face of setbacks
- Effort is a path to mastery
- Learn from criticism
The Intersection of Growth Mindset and Multifamily Investing
What does having a growth mindset have to do with multifamily real estate investments? Let’s dig in.
A growth mindset encourages continued learning and growth. The economy is in a constant state of flux, which means that to invest successfully, be it in multifamily real estate, the stock market, or any other avenue, investors need to continually build on their knowledge of the economic landscape and keep up with changing news and trends. In this sense, having a growth mindset is crucial to investing money successfully.
Let’s take each of the 5 key elements to develop a growth mindset and apply them to multifamily investments:
- Intelligence can be developed
- A growth mindset encourages investors to seek knowledge and continuously educate themselves about the state of multifamily investing, from understanding local market conditions to finance to rental incomes and so on. This continuous learning can lead to better investment decisions and risk management. If you’re ready to learn more about the ins and outs of multifamily investing, contact us today.
- Embrace challenges
- In the multifamily real estate landscape, challenges are inevitable. A growth mindset allows investors to view setbacks and failures as opportunities for learning and improvement rather than insurmountable obstacles. This resilience can be crucial during market downturns.
- Persist in the face of setbacks
- Whether you invest in cash, the stock market, real estate, or crypto, setbacks are more or less guaranteed. This year has been particularly challenging across investment arenas, thanks to inflation, cost of living increases, and variable interest rates. By adopting a growth mindset, investors are more adaptable and willing to pivot their strategies, change tactics, and explore new opportunities. This adaptability in the face of uncertainty can lead to better long-term results and sustainability.
- Effort is a path to mastery
- No one is born a “great” investor – that skill takes time, research, consistency, and often mistake after mistake. A lot of energy is required to undergo due diligence and grasp the ins and outs of the ever-changing markets, but those willing to put in the work are often rewarded for their efforts.
- Learn from criticism
- Investing in multifamily real estate puts investors in contact with a diverse group of individuals, including tenants, contractors, and, in the case of multifamily syndication, other real estate investors. This network can provide ample learning opportunities for those investors who can push their pride aside and learn from criticism.
Conclusion
Adopting a growth mindset fosters continuous learning, resilience, adaptability, and innovation – in day-to-day life as well as in multifamily investing. This positive mindset can help investors navigate challenges, capitalize on opportunities, and achieve long-term success in the dynamic realm of multifamily real estate investing.
If you’re ready to start your journey in multifamily investment, contact us to get started.
