Posted by Theresa Bradley-Banta
Something I heard the other day…
“You can get committed to your beliefs because you want to believe.”
OK – as you know, I like to get inside the mindset of entrepreneurs.
Here’s what this means to me.
You can get committed to your beliefs — even though they’re wrong, or may lose you time & money — because you want to believe.
I see this with real estate investors all the time.
“My sister lives in San Francisco and I’m thinking about investing in real estate there… even though, all the numbers, market data, and research tell me this would be a poorly timed market right now.”
Yep. They did the research. They have the numbers right in front of them. Logic and the facts tell them it is not a good investment.
Yet, they want to believe.
They have some other, not so logical reason, for wanting to invest in a particular area. It’s really close to home. Or, they visit occasionally (Oh, really? Are you ready to visit two, three times a month?). It used to be a hot market, etc.
But, they say,
“This market may turn around some time!”
“My realtor says this is a perfect market for investment properties!”
Are they nuts?
Or, do they just feel like throwing away some money today?
Here’s another example.
“I’ve found a great price on a duplex and the price is just too good to pass up.”
Then, they tell me, their property manager says the only properties that are renting right now are 3 and 4 bedroom single-family homes.
No one is renting duplexes.
Here’s the belief this person is committed to; finding a great price on an investment property is the only factor that matters.
They believe.
They will be killed financially when the property sits empty.
It’s tempting to hear what you want to hear; to believe, in spite of the data.
I do it. Everyone does it.
You can avoid this trap by doing your research carefully. When in doubt, go to the numbers. Be honest with yourself about your motivations. Listen to and consult experts. Be willing to be flexible.
Lesson:
Be very careful about being committed to your beliefs because you want to believe.
Successful entrepreneurs surround themselves with people who have the skills they lack, or could improve on, by choosing the perfect team and knowing their own personal limitations or beliefs.
Theresa Bradley-Banta, co-creator of www.bigfishtopdogs.com, is a musician, award winning graphic artist, blogger, chief figure outer and owner of multiple businesses. You can follow her on twitter @bigfishtopdogs.
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