Before she co-starred on the show “Shark Tank,” Barbara Corcoran was a highly successful real estate investor. In the years since, his net worth has grown to more than $100 million. So when she gives investment advice, people start listening.
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With that in mind, here are Corcoran’s 10 top tips for getting rich investment.
1. Making everyone else work
Corcoran says she struggled in school as a child, saying, “I couldn’t learn to write letters and numbers my entire life.” She says that it was difficult to see her classmates easily completing the work for which she had to struggle for hours.
However, the experience taught Corcoran how to overcome obstacles. She learned from a young age to work twice as hard as anyone else and considers this to be the main reason for being financially successful.
The lesson is that sometimes becoming rich means working harder than everyone else. This could mean doing more research on investment opportunities or working harder as an entrepreneur.
For example, finding the best real estate deals in your area will probably take more effort than a quick online search. Similarly, if you want to beat the stock market, you will need to develop enough skills to outperform the experts.
2. Invest in real estate
Corcoran made his first millions in profits by selling his highly successful New York real estate business. She reached that position by demonstrating a consistent track record of success, which Corcoran attributes to her golden rule of real estate investing.
The rule of thumb is to purchase a multi-unit property with at least a 20% discount. This lets you live for free while your tenants pay your mortgage, she says. If you can do this in an emerging sector, you will be free and may eventually be able to sell for huge profits.
3. Be great at failure
Corcoran also says it’s important to learn how to recover quickly from setbacks. She says the most successful entrepreneurs she’s worked with have this trait. People who do generally focus on maintaining a positive, can-do mentality in the face of challenges.
For example, before the Internet, Corcoran thought she could do better with her real estate investments by putting her properties on tape and sharing videos. Although it was unsuccessful, he bounced back quickly and took full advantage of online property listings before many of his peers. Had she let her previous investment failure stop her from trying again, she would have missed that opportunity.
4. Take advantage of bad times
Corcoran believes in Warren Buffett’s famous advice: “Be fearful when others are greedy and greedy when others are fearful.” She says it’s important to stay active during quieter times and it can be your best opportunity to lay the foundation for future success.
Consider, for example, the housing collapse of 2008–09. Housing prices declined due to bad mortgages, but the market has rebounded somewhat since then. If you bought during the dip, you’ll probably be very happy with your investment. Those who waited too long to re-enter the market missed out on the best prices.
5. Don’t worry too much about diversification
Some financial experts recommend diversifying your portfolio to protect yourself from market downturns. Corcoran disagrees. She says she’s built a lot of wealth by investing carefully, but hasn’t bothered to diversify just to do so.
It’s hard to argue with his results. Corcoran’s keen attention to the real estate market helped him turn a small loan into a multi-million dollar estate. Warren Buffett also follows the same approach.
6. Set huge goals
Corcoran emphasizes the importance of setting high expectations for yourself. She says that if you can create an image of yourself that is bigger and better than reality, “you’ll have to run like hell to keep up…”
The idea is that when you have high expectations for yourself, you begin to see how hard you need to work to achieve your goals. Even if you don’t reach those goals, the effort you put into doing so will likely put you in a good position financially.
This may mean setting a retirement goal for yourself that you may or may not be able to meet. Or maybe you want to increase your monthly income with stock market gains that are beyond your wildest dreams. The higher you aim, the further you will move forward even if you fail.
7. Consider partnering with family
Corcoran acquired his wealth by investing in real estate. But she admits that many of the opportunities she enjoyed are not as affordable today as they were in her time. That’s why she says partnering with family can be a smart move for young people who want to move toward increasing their net worth.
You may not be able to purchase an investment property on your own. But maybe you can take some partners with you and divide the ownership percentage accordingly. Doing this can help you find your footing, which may help you eventually get the money you need to purchase investment properties of your own.
8. Take big risks
Corcoran says that if you are extremely risk averse, it is not even worth investing in real estate (6). He believes that taking risks and being aggressive in your property purchases is a non-negotiable step to success in the industry.
You can use the same logic for other investments as well. The only way to achieve massive upside potential is to take risks that others are often unwilling to take themselves. This could mean buying a stock after it drops 50% when others won’t touch it or investing in an asset that others in your sector warn you against.
However, you still need to be smart. Taking risks just for the sake of doing so is hardly a good move.
9. Don’t be afraid to pay more
Corcoran says you shouldn’t be afraid to pay more for the deal you want. Their experience is that the extra upfront cost comes back to you in profit over time. This could mean buying a stock that is at its all-time high or purchasing an asset above market value with great income-generating potential.
10. Make your investment last for years
Finally, Corcoran has always been a big believer in keeping your investments long-term. She says this practice helped her achieve massive gains in her real estate investments. If she had sold as soon as she made a good profit, she would not have been as rich as she is today.
This article was provided by MoneyLion.com For informational purposes only and should not be construed as financial, legal or tax advice.
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