Abundance Mentality
Why an Abundance Mentality in Real Estate Investing Yields Greater Profits for the Real Estate Investor
by Greg Wilson, February 4th, 2010
According to Wikipedia, “Abundance economics deals with situations where there are more than enough resources for everyone (i.e. an abundance).”
If you will deeply consider how this statement applies to you as a real estate investor, you will quickly realize it is one of the most important aspects of your personal and business development.
By definition, if an investor believes in and adopts an abundance mentality toward real estate investing, the result is that your competitors are transformed into friends. Most investors who manage to survive in the REI business for any significant length of time come to realize there is no meaningful, finite limit on the number of “deals” out there.
If we consider the problem logically, each investor only has access to a limited amount of time and funding. In my experience that amount of time is usually equivalent to a part-time job, say about 20 hours per week. And the average investor usually only has enough funding to buy one, or maybe two, investment properties at any given time. Take that and compare it to the flood of investment-grade properties on the market at any given time, and you quickly see that every legitimate investor (meaning the ones who can actually buy property, and are not just acting as unlicensed Realtors) could exercise all the time and funding they have access to, and the market would still be saturated with un-purchased investment properties.
As an investor, once you realize this, you will quickly understand there are no external, market-scarcity limiting factors to your personal income potential. The only ones that really exist are those you impose upon yourself. And once you “train your brain” to think in this new positive manner, you will be amazed at the results. Almost immediately you will begin having more fun, experiencing less stress, and receiving greater benefits from the REI business, and your life in general.
However, the opposite of the abundance mentality is the scarcity mentality. I have often seen the scarcity mentality breed fear, jealousy, spite, and selfishness among some of my REI competitors. Sadly, this usually lead to insecurity, mistrust, a feeling of low self esteem on their part, and ultimately their failure. I truly believe these negative thought patterns are due to their fundamental belief that good, meaning profitable, real estate investment opportunities are scarce. Usually these beliefs lead to the incorrect conclusion that in order to become a successful investor, you have to become an aggressive investor, living every moment as if it were a “battle” and viewing every competitor as “The Enemy”. I believe the eventual failure of investors embracing the scarcity mentality is a direct result of their mindset. It appears adherents to the scarcity mentality see only obstacles and problems, instead of the huge opportunities that lay before them.
Ultimately, the abundance mentality proves to be the superior world-view choice for investors. Once you begin believing opportunity is everywhere, it rapidly begins manifesting itself. Everywhere. Wealth begins to materialize because you believe there is an abundance to go around, and then suddenly there actually is an abundance of wealth for everyone. The same is true about the enjoyment and satisfaction you gain from being in the REI business. And all of this ultimately helps you learn to truly celebrate your competitors’ accomplishments, instead of loathing them for stealing “your piece of the pie”.
Frankly, once you understand the abundance mentality and how it relates to real estate investing, you quickly see there is no pie. The reality is, there are enough deals out there everyday for every one of us to buy all the properties we can afford. And once you realize this, there is no more need for jealousy, selfishness or insecurity. And when you eliminate those negative stressors from your life, you become a more generous, giving, and well rounded individual. And then, everyone in your circle of influence (see Covey’s The 7 Habits of Highly Effective People), yourself included, makes more money. And after all, isn’t this why we all got into real estate investing in the first place? To better our lives and increase our income?
Greg Wilson is the CEO of Ridglea Holdings, Inc., a Fort Worth,