Jason Hartman and the AIPIS team have always encouraged real estate professionals to inculcate a mentorship relationship with clients. They should consider you a trusted voice of reason when it comes to income property investing. At the same time, investors must develop a sense of rational thinking, one that stands apart from anyone else. This is pretty important when it comes to making sound income property buying decisions.

Jason’s 19th Commandment of successful investing says, “Thou shalt make rational decisions.” A great example of failing to heed this advice can be seen any time the housing market takes a dip. Newbie, and even seasoned investors, see a wondrous buying opportunity, which it is. The trouble is when you begin buying properties indiscriminately, like they’re packs of bubblegum cards, and you can’t wait to rip them open and see if you got something good.

Here’s the problem. Just because a property is cheap doesn’t automatically make it a profitable addition to your portfolio. Let’s linger on that idea for emphasis. Cheap and good aren’t necessarily the same thing. They might be, but don’t be the sap who makes the assumption that is always the case. You still need to think through every single deal that crosses your path.

Does it make financial sense the moment you sign on the dotted line? If not, why the heck are you even wasting your time thinking about it? Do you have an investment death wish? Do you want to lose money and become a frustrated investor? Don’t get greedy. Don’t run out and buy a bunch of junk properties just because they’re on sale.

As a native of southern California, Jason likes to remind his clients not to take their California brains to other areas of the country. Compared to west coast prices, almost anything looks cheap, but that way of thinking is a trap! Our greatest motivators as human beings are to gain pleasure and avoid pain. In other words, fear and greed.

Don’t let fear and greed into your decision-making process because they will screw you into a knot so tight you’ll never get out. (Image: Flickr | karola riegler photography)

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