Recently, a number of studies have surfaced showing that women have an advantage in managing finances and investments. A study by Rothstein Kass found that in the last six and half years, hedge funds managed by women outperformed similar funds managed by men. Whatever the reasons may be, women make great investors; particularly in real estate. Featured below are some of the most probable reasons that make women naturally rockstar investors.
When you build up your portfolio, and manage multiple properties, there will be occasional major bills such as cutting trees, or replacing furnaces and roofs, which cost thousands of dollars. Several tenants could give notice to leave at the same time, and other tenants you may wish would leave because they’re so much trouble: all of which makes your life miserable and stressful in a short span of time. It’s very tempting to throw in the towel, become impulsive and sell your property in desperation. Hence, why self control is very important. Situations like these could push you out of your comfort zone, but if managed accordingly, you will evolve and become a better investor. With bodies built to bear babies, we are naturally built to be out of our comfort zones, i.e. as we learn to accept and deal with the consequences of pregnancy. This is very similar to real estate investing, having more self-control leads to less impulsive, desperate decisions when times are tough.
Real estate investing is a waiting game, you buy decent investment properties, stumble a few times during the journey, dust yourself off and watch your wealth grow.
2. Willingness to Learn & Share
It is not surprising to see that women investment groups are starting to become popular. Women like to see other women become successful in their real estate investments and are willing to share their techniques with others to be successful rather than competing with each other. This leads to a more collaborative environment, where we share lessons from the trenches, and learn from each other. Real estate investing is a continuous learning process, especially if you want to excel at it.
3. Research, Research, Research
Entering motherhood is an eye opening experience and one that re-emphasizes our natural ability to make an informed decisions. There are so many options and so much to buy when bringing a baby home, such as baby cribs, carseats, strollers, and minivans; amounting to mega dollars. We naturally do a lot of research to self educate and to make an informed decision before making large purchases.
Successful real estate investing requires significant due diligence, comprehensive number crunching, and thorough research before a decision can be made to go or not go with a property. Like preparing for a child, women prepare for their real estate purchases with research, rather than relying on a tip from a friend. They will take their time and analyze everything before making any decisions.
Going into motherhood and taking care of twins uncovered a new ability for me. It was almost like a superpower ability that I thought I never had: patience. Before I had kids, I had very little patience, but now I have insane amounts of it and it almost scares me how much I’ve changed. Imagine when your child is screaming in your ears because she doesn’t want to brush her teeth, or throwing a tantrum before going to sleep, or shutting her mouth and refusing to eat during meal times. You learn to become patient with these crazy behaviours because you know with time, they will grow out of it, and that the journey of having kids is rewarding.
Patience is an invaluable skill set when it comes to real estate investing. Real estate investing is a slow process to wealth that requires significant patience. It also takes time to find the right team to support you on your investments, and sometimes weeks turning to months, if not years, before this happens. However, with decent investment purchases come decent, if not awesome, financial rewards if you patiently wait.
To Be Continued - Part II Coming Soon