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190: Leaders and Managers the psychology of investing


04-18-2008

PropertyInvesting.net team

 

There are two key threads of making money out of property. One is to buy and sell sometimes quickly doing up in the process. The other is to manage properties or a portfolio in the longer term. They require different skills and different psychological traits. If you do an analysis of which type of traits you have, this can help steer you towards the line of property investment business that maximize your value and skills you will find you enjoy the work more if you are in a domain where you maximize your traits.

 

We have split them into two key categories. Please be aware, anyone that makes serious money from property investment is either a manager or a leader if you are not, you will not even start property investing! If you have a full time job as well and are neither called a manager or leader please ignore this. Practically all people who make money from property are doing this because they manage or lead!

 

Leaders

 

Traits

          Impulsive - liable to jump in lower analysis and fast decision making

          Focus on big picture trends

          Seizes opportunities

          Tends to be trusting and not very skeptical  

          Does not like detail

          Independent minded leading from the front

          Likes starting things, does not like finishing

          Often extrovert

          Often warm character

          Good at quick high level analysis and numbers often bi-sects processes and systems

          Challenging

          Will tend to go it alone

          Liberal, adventurous

           

 

Traits most suitable for the following  in property investment

          Land acquisition and sale

          Development ideas, opportunities, planning phase

          New business opportunity identification and generation

          Buying properties quickly building a portfolio

          Ideas generation

          Flipping property and quick-fixes

          Delivering high capital gains in short period of time

          Thrives on taking risks

         Likes to avoid tenant issues believe more important things to work on

         Likes to avoid maintenance issues believe more important things to work on

 

 

Managers

Traits

          Not impulsive rationalizes things before decisions high degree of analysis and slow decision making

          Focus on details and skeptical of the value of longer term trends

          When seeing an opportunity, thoroughly analyzes before pursing not scared to walk away

          Tends to be distrusting and skeptical  

          Likes detail

          Can be independent or relying on teams a follower

          Likes finishing things, not so keen on starting things

          Often introvert

          Often cool character

          Good with analysis, numbers, rationalizing, economics, processes, systems

          Likes to build aligned view

          Conservative, cautious

 

 

Traits most suitable for the following  in property investment

          Development execution, building, finishing projects

          Existing business maintenance

          Due diligence

          Buying properties quickly building a portfolio

          Ideas review and rationalization

          Maintenance of property

          Management of property

          Managing tenants

          Delivering high positive cashflow in longer term

          Like to avoid taking risks

          Good at being firm with tenants proactive in managing tenants

         Proactive with managing maintenance issues and putting systems and processes on place to execute a maintenance schedule and plan

 

We hope this analysis has stimulated your thinking to consider which traits you have and thence which part of the property investment business you're most likely to succeed in.

 

 

 

 

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