Shark Tank’s Barbara Corcoran was a very successful real estate investor before appearing on the show. Since then, her net worth has increased to over $100 million. So when she offers her investment advice, people tend to listen.
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Here are Corcoran’s top 10 tips for becoming wealthy.
1. Don’t lose to everyone else
Corcoran said she struggled in school as a child, saying, “I could never do letters or numbers.” She says it was hard for her to watch her classmates struggle for hours to complete her assignments.
But the experience taught Corcoran how to bounce back from obstacles. She learned from her youth to work twice as hard as others and believes that this is the main reason for her financial success.
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The lesson is that getting rich may require you to work more than others. That might mean researching more investment opportunities or trying harder as an entrepreneur.
For example, finding the best real estate deals in your area will probably take more effort than a quick search online. Similarly, if you want to beat the stock market, you need to be skilled enough to outperform the experts.
2. Investing in real estate
Mr. Corcoran made his first millions by selling his highly successful New York real estate business. She reached that point by showing her consistent track record of success. Corcoran attributes that to her golden rule of real estate investing.
The rule is to buy multi-unit properties at least 20% down. She says this allows you to live for free while the tenant pays the mortgage. If you can do this in an emerging area, you may be able to live there for free and eventually sell it for a huge profit.
3. Become resilient to failure
Corcoran also says it’s important to learn how to bounce back quickly from failure. She says the most successful entrepreneurs she’s ever worked with have this trait. These people typically focus on maintaining a positive, “can-do” mindset even in the face of challenges.
For example, before the Internet, Corcoran thought he could become a better real estate investor by tape-recording his properties and sharing the videos. This failed, but she quickly bounced back and took full advantage of online real estate listings faster than many of her colleagues. If the failure of her previous investment prevented her from trying again, she would have missed out on the opportunity.
4. Take advantage of bad times
Corcoran believes in Warren Buffett’s famous advice: “Be fearful when others are greedy, and be greedy when others are fearful.” She says it’s important to stay active during quiet times, which can be your best opportunity to lay the foundation for future success.
For example, consider the housing collapse of 2008-2009. Home prices plummeted due to bad mortgages, but the market has since recovered and some have recovered. If you bought during the crash, you’re probably very happy with your investment. Those who waited too long to re-enter the market missed out on the lowest prices.
5. Don’t worry too much about diversification
Some financial experts recommend diversifying your portfolio to protect yourself from market downturns. Mr. Corcoran disagrees. Although she has built up a lot of wealth by investing carefully, she says she never worried about diversifying just to invest.
It’s hard to argue with her results. Mr. Corcoran was so focused on the real estate market that he was able to turn small loans into multi-million dollar properties. Warren Buffett takes a similar approach.
6. Set big goals
Corcoran emphasizes the importance of having high expectations for yourself. Once she is able to create an image of herself that is bigger and better than her real-life self, she says, “I have to run like hell to catch up with her…”
The idea is that when you set high expectations for yourself, you begin to see how hard you need to work to achieve your goals. Even if you don’t achieve those goals, the effort you put into it could put you in a great financial position.
This means setting retirement goals for yourself, but wondering if you can achieve them. Or maybe you want your stock market profits to increase your monthly income to a point that feels beyond your wildest dreams. The higher you aim, the farther you can reach even if you fail.
7. Consider working with your family.
Mr. Corcoran made his fortune by investing in real estate. However, she recognizes that many of the opportunities she enjoyed are not as affordable as they were back then. That’s why working with her family can be a smart move for young people looking to get a head start on building their net worth, she says.
You may not be able to purchase investment property on your own. However, you could also hire several partners and divide the ownership percentage accordingly. Doing so can help you get your foot in the door and ultimately get the funds you need to purchase your own investment property outright.
8. Take big risks
Corcoran says real estate isn’t even worth investing in if you’re extremely risk-averse. [6]. She believes that taking risks and being proactive in purchasing real estate is a non-negotiable step to success in the industry.
You can use the same logic for other investments. The only way to have great upside potential is to take risks that others are unwilling to take. That might mean buying a stock after it’s down 50% when others don’t, or investing in real estate that others in your area warn about.
However, you still need to be smart. Taking risks just for the sake of doing so is rarely a good move.
9. Don’t be afraid to overpay
Corcoran says people shouldn’t be afraid to overpay for deals they like [6]. In her experience, extra upfront costs tend to pay back in profits over time. That could mean buying stocks at all-time highs or buying real estate that has the potential to generate income above market value.
10. Hold your investment for years
Finally, Corcoran has always been a strong believer in holding investments for the long term. She says this practice has helped her make great profits in real estate investments. If she had sold it as soon as she made a decent profit, she wouldn’t be as wealthy as she is today.
final take
Barbara Corcoran’s wealth tips focus on mindset and philosophy rather than specific assets. This is a reminder that factors such as work ethic, perseverance, and willingness to bounce back from failure are often more important in the long run than whether you currently have the ideal investment allocation. .
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This article originally appeared on GOBankingRates.com: Barbara Corcoran’s 10 Best Investing Tips to Get Rich
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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