Mark Homer is a financially-free multi-millionaire property investor and entrepreneur, and below details the kind of mind to adopt when investing, when to cut your losses and how to manage losses.
Some people delude themselves that something is working to save face (or hard work), or because they don’t want to feel (especially publicly) that they made a mistake.
A mature investor will quickly accept his mistake(s), & often see it as a relevant lesson in the pursuit of success.
This process of honesty (to yourself and others around you) is an essential trait of a wise, profitable investor.
How quickly you recover from your mistakes & stop the losses measures your success and bank balance as much as your victories.
If you kid yourself, it will cost you in the long run, people will trust you less and you’ll have no ‘room,’ for investments that really work.
Once you’re sure an investment is a lemon, cut your losses quickly & move on, taking the important lessons and the opportunity to make a sound investment replacement.
Although at the time painful, people will respect you for this honesty and are more likely to warm to or partner with you.
These investors/partners on the side-lines will be watching you on your investment journey, silently judging your actions remotely and seeing how you react to them.
You’ll be surprised how your mistakes (and how you deal with them) attract partners as much as your victories.
Many investors are afraid or closed with their knowledge, but as long as an investor isn’t local to you and buying exactly the same property/investment types, this caution is usually misplaced; very much an old school psychology of lack/not enough to go around.
People often don’t appreciate that being open with critical and valuable investment knowledge specific to your niche pays huge dividends, because people will want to reciprocate.
You’ll end up with a much larger collective knowledge base and value any information given in a very high regard.
I find it useful to watch what people do – not listen to what they say they are doing, as you get the greatest insight into the reality of what is working (and what is not).
Mark Homer is a financially-free multi-millionaire property investor and entrepreneur, whose contrarian, detailed understanding of the UK property market is unrivalled. Mark co-founded the UK’s largest property education company, Progressive Property, has bought and sold over 550 properties since the business began in 2006, and has co-authored four bestselling books during that time. Mark loves to uncover the investing strategies that 95% of the others fail to find, and takes pride in having thrived during some of the toughest economic years Britain has faced in the last century.