The Mark of Success: 50 Common Traits of Prosperous People

Bill Gates, Warren Buffet, Jeff Bezos, Richard Branson, Mark Zuckerberg, Oprah, Elon Musk; these are some of the most successful people alive today, creating a legacy of contributions to society that also come with unprecedented wealth. But apart from being ultra accomplished, rich, and powerful, they have far more in common than you might think.

In fact, just about every person who is successful at their chosen vocation, whether it’s founding a world-changing charity, being the G.O.A.T. at their professional sport, or building a business empire, has the same traits in common.

Robert Kiyosaki, Warren Buffet, Donald Bren, Donald Trump and others may have built their success based on real estate and shrewd investments, but these traits will apply to the average person, too, helping anyone achieve great things.

Here are our first 25 common traits of prosperous people, and look for 25 more in part two:

1.         They aren't afraid to put in extra work.

People who achieve big things in life invest extra effort, thought, and creativity into everything they do, no matter how big or small.

2.         Sacrifice. 

When you look at those who achieve excellence in any walk of life, the common pattern is that that had to forgo other fun, comfortable, and even profitable activities in order to focus on a much larger goal. However, this sacrifice is always worth it.

3.         They put in long hours doing what they love.

Successful people got the hard work out of the way early, not looking for shortcuts or get-rich-quick schemes. By doing, they learned to refine their work, maximizing the outcome and minimizing the effort so they grow incredibly efficient.

4.         Problem-solving.

Instead of getting derailed by distractions and day-to-day obstacles, they're always focused on the target, asking questions like: how can I improve?  What is lacking or holding me back?  There is a built-in evaluation of every project they undertake.

5.         Self-awareness.

People who accomplish great things in life hold a deep-seeded confidence in their abilities, but also have an honest and accurate sense of their own strengths and weaknesses. 

6.         Curiosity.

Some of the most unlikely experience gives rise to the best ideas.  Great thinkers get outside their bubble, and open themselves up with a relentless curiosity about the world.

7.         Specialization.

They have become better and better at one thing instead of trying to be proficient in many things. They are specialists; not generalists.

8.         Literacy.

There is no substitute for reading and learning, and ultra-achievers read non-stop. Studies show that 88% of wealthy read 30 minutes or more every day. Reading is part of that core skill set, no matter the discipline.

9.         Organization and goal setting.

 81% of wealthy and successful people scratch things off a daily To Do list, compared to only 19% of working class people. Just the act of writing down goals is very powerful, allowing the mind to prioritize and receive a jolt of satisfaction from completing even simple tasks.

10.       Wise use of time.

Successful people use their downtime to inspire their projects and explore other ways of thinking.  Since time is our greatest asset, successful people don't spend theirs on empty entertainment. In fact, 67% of wealthy people watch one hour or less of TV every day, while 23% of poor people do, and only 6% of wealthy watch reality TV shows vs. 78% of poor.

11.       Milestones.

Setting tangible goals with concrete timetables and planning the action steps to achieve them is crucial to success.  Being able to break down big goals into smaller milestones is key, along with constant reevaluation of their plan as circumstances shift. If we don't, then we aren't experiencing progress and our projects quickly lose momentum.

12.       They understand that failure is not the enemy.

They aren't afraid of making mistakes and even failing because they know it leads to growth.  In fact, if they don't go through enough failure in their lives they understand they're not taking enough risks.

13.       Optimism bias.

Successful people don't wait around to get lucky; they create their own opportunities with hard work, smart planning, and confidence in their efforts. In fact, 84% of wealthy believe good habits create opportunity instead of luck, while only 4% of poor believe the same. Furthermore, 76% of wealthy attribute bad habits to bad "luck" vs. 9% of poor.

14.       They take responsibility.

People who own their actions - good and bad - exhibit supreme accountability. By taking responsibility for the outcomes in their life, they are automatically empowered to change and grow.

15.       Flexible thinking.

Mental agility takes practice, but it’s a necessary skill. Successful people have firm moral and ethical values but flexible thinking based on new information, adjusting their sails depending on how they wind blows. 

16.       Create vs. consume.

Instead of just building wealth and acquiring material comforts, they focus on providing value and building something of worth, whether it's a new business, building a house, or forming a non-profit.

17.       Presence of mind.

The single most important step to happiness is focusing on being fully present and immersed in the moment. This, combined with incessant gratitude, is the mark of super successful people.

18.       Motivation.

Mega high achievers dare to dream about the unattainable...then they attain it!  In fact, 80% of wealthy and successful people are focused on a singular goal – and never take their eye off the ball.

19.       Persistence.

They just don't quit, because it's not even an option. You hear great minds talk about setbacks and disappointments, but they understand that their success is earned by bouncing back.

20.       Dissatisfaction with the status quo.

It’s really about developing a vision rather than accepting mediocrity. 

21.       They lock in and focus – not multi-task.

Multi-tasking is a myth that amounts to “do everything badly.” The human brain can only fully focus on one thing at a time.  Successful people know this and don’t try to juggle – work in immersed short bursts of concerted effort.

22.       Tireless ambition.

Achievers don’t compromise, soften, or quit on their goals. They forgo the safety of too much routine and instead push toward larger self-directed achievements.

23.       They seek out positive learning relationships. 

No one gets great in isolation, and any genius will tell you that they had tons of mentors and also taught themselves.  Exchanging ideas with people who are not like you but may have complementary skills can push you from being very good to excellent.

24.       They surround themselves with people they emulate.

Understand that whoever you spend the most time with is going to determine what you do yourself. Therefore, seek out positive, inspiring, energetic, kind, and dynamic people as friends, co-workers, and collaborators.

25.       They’re consummate networkers.

As the saying goes: your network is your net worth.  We have to talk about our projects in the same energizing way that successful people do to draw in support and create partnerships. In fact, 79% of wealthy people network five hours or more each month to move their projects forward.

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Flipping homes isn't easy but can be very rewarding with these strategies.

It’s true – flipping houses certainly is not easy. Though the practice was popular in the real estate boom, we could argue that people who tried to buy homes, fix them up, and resell them immediately for a profit were more speculators than sharpened flippers, riding the easy wave of rampant appreciation and no-risk financing. And while the real estate bust did litter the market with rock bottom priced foreclosures and short sales, many of the true bargains were had by cash buyers and institutional investors, not the average Joe.

But these days, even with our modest or leveled appreciation and common sense financing, it’s still possible to flip a home for profit. Flipped homes accounted for 4.6 percent of all U.S. single-family home sales in 2013 according to RealtyTrac, up from 4.2 percent in 2012 and only 2.6 percent in 2011. But caveat emptor – buyer beware – fixing and flipping correctly are functions of market research, competitive advantage, realistic goals, and patient strategy, not glamorous deal-making (like on the real estate TV shows) and quick $100,000 profits. So if you are going to undertake a “flip” the right way, here are some points to consider:

What’s your competitive advantage?

It’s tough to go into a home purchase with the intent to flip it without some sort of advantage that will make the numbers work in your favor. Do you have cash – or access to it – so you can close quickly and make offers on homes that are impossible to get loans against? Are you a contractor who can do the fixing work yourself? Without something in your favor, you may have a tough time.

If not, partner up.

If you don’t have that advantage don’t despair; you can partner up with someone who does have cash or is a contractor. In fact, having a partner for the first couple of flips you do is a great way to defer risk. Your contribution will most likely be the time and management it takes to make the whole thing happen.

What to look for in a house.

There are different strategies of course, but when starting out, I recommend looking for location, location, location…and square footage when identifying a property to flip. Find a big house in a desirable neighborhood that needs a lot of cosmetic work – like paint, carpet, tile, landscaping, etc. Once you do the work modernizing it, your value will be virtually guaranteed because of its size and neighborhood.

The right contractor is everything.

It’s extremely difficult to pay top-dollar retail prices on construction work and still pencil out a flip, especially if you get into big items like the roof, heat and AC systems, etc. But there are plenty of smaller contractors hungry for work who will do a great job. Have your team in place well ahead of closing on the purchase of the home and have all the work, materials, and timelines coordinated so you hit the ground running. Build performance or late clauses into their contracts so if they don’t perform, they’re not getting paid.

Of course you’ll want a great home inspection done before you commit to the property, and have your construction team with you to walk through and start planning at that time.

Timelines.

As a general rule, things always take longer than expected with a flip. There are always sneaky little unforeseen problems that pop up, so just to be safe, whatever your timeline for completion is, build in a 30-40% buffer when running numbers.

Be super conservative with costs.

Likewise, it always costs more than anticipated – almost never less. So budget for the unexpected and you’ll still be able to turn a profit even with obstacles.

Offer, then negotiate.

Remember that an offer to buy a property is really just the start of the negotiation, not the end. Of course you don’t want to waste anyone’s time, but if there is anything you see in the appraisal, roof inspection, home inspection, or seller disclosures that hints of diminished value, have your realtor renegotiate the price. Be aggressive and fair, and only remove contingencies and continue with the deal if you it pencils out as a great flip.

Avoid the “funky” spaces.

If a home has a garage conversion, an addition that looks anything short of perfect, or a sun porch built to be square footage, skip it. You won’t be able to solve those problems easily and the potential buyers will see them as negatives, not positives.

You want to put “lipstick on a pig.”

That’s flipper-speak for a cosmetic fixer, like we talked about. Paint, lighting fixtures, flooring, tile, countertops, landscaping, a few new appliances, etc. are the best ways to fix up a home inexpensively and efficiently and make a profit on the flip. Meanwhile, a new roof, new cabinets, plumbing problems, and installing heat and AC units will put a big dent in your budget. Of course, if you know these problems exist going in and you budget for them and your purchase price is reduced accordingly, then they could be just what you’re looking for.

Have a realistic exit strategy.

You’re always looking to pay less and get a great deal and guess what? So will the new buyer. So don’t expect to get the tip top of the market when you sell. Instead, set an aggressive sales price to attract lots of buyers and create a bidding war so you’ll sell the home quickly.

What’s your plan B?

We all plan to succeed, but with flipping houses it’s a good idea to formulate a plan B. So if the budget gets out of control so you can’t break even at a realistic price or it won’t sell soon enough, have a plan to put some renters in there for 6 months or a year until you can sell it – without losing your money.

Don’t count on appreciation.

I don’t recommend factoring any appreciation into your projected profits for a flip, especially if it’s a short term 3-6 month project. If the market goes up a little in that time, then it will be a bonus.

Be careful of financing.

If you get financing on your purchase and then try to flip it, talk to your lender and read the fine print, first. Many loans had prepayment penalties (less prevalent now) or 90-day flip restrictions (like FHA loans) that threw a monkey wrench in the plans to unload the house quickly.

Time into summer.

One way to maximize buying at the right time (low) and selling at the right time (high) is to buy a home in the winter, fix it up, and then put it back on the market in the spring or summer when there are generally more buyers and interest in moving.

Research.

Know everything about the neighborhood you’re buying in. Study many detailed market analysis and track what properties are for sale, pending, and closed as you’re undertaking your flip. There should be no surprises that you’re in a special flood zone, you can hear the train from the house, or prices are dropping.

Pre-market.

It doesn’t hurt to have a “Coming Soon” sign on the property while you work or flyers showing the projected before and after photos. That will generate interest from passerby’s and those who live in the neighborhood, and you might even have a few people making offers the first day it’s on the market. 

Get ready for lots of work.

Buying, fixing, and flipping is an arduous process, with many early morning meetings with contractors and late nights at Home Depot. Remember that most of your important work is done before you even make an offer, when you’re identifying properties. A good realtor who understands your strategy and price points is invaluable, but you’ll have to do lots of legwork, too, to make sure it’s the right deal.

12 Real estate investment tip for great renters and landlord-friendly leases.

Owning rental property is one of the best investments you can ever make. In fact, 94% of millionaires surveyed say they have significant real estate holdings in their portfolio. Yet many people with the means to buy rental homes are intimidated by the prospect of dealing with tenants. But with a little strategizing, you’ll attract great tenants who pay on time every month, putting plenty of money in your pocket as rents and home values go up. Many people chose to enlist a property management company to have them handle it all, like Vienna Property Management. But whether you outsource a property manager to eliminate all your renter headaches or chose to take it on yourself, you should understand these strategies to get the best renters and earn the highest rents.

1. Put a big sign in the front yard advertising the rental, listing the features (2 bedroom/2 bath, big garage, fireplace, new carpet, back patio, etc.) but not the price. You’d be surprised how many people find rentals through signage, and will be intrigued to find out how much you’re charging. You can even put a few directional signs at nearby busy cross streets to pull in traffic.

2. The phone number on the sign should ring to a voicemail that details all the specifics about the property – including price, credit requirements, whether you allow pets, the deposit amount, and when it will be available to show. The voice message can also offer your email address so they can contact you that way – which is far more efficient than phone calls.

3. Very soon, your phone will be ringing. But instead of driving out to the property every time someone says they’re interested (and hoping they show up,) host two scheduled open houses every week. That way, whenever a potential renter calls, you can tell them that there will be an open house on Wednesday night between 5-8pm, or Saturday between 10am and 2pm, etc. 

4. When you call these potential renters back, get their email address and send them plenty of photos of the inside of the home, a detailed “spec sheet” that lists the features, average utility costs, and rental requirements. Also, you can email them an application to be completed and brought to the open house – or emailed back to you ahead of time. 

5. Advise potential renters that there’s a fee for submitting an application – about $15 to cover the cost of pulling their credit history. This will weed out all the applicants who aren’t serious or motivated enough to put a little bit of “skin in the game. “

6. I suggest you avoid renting to friends or working out special deals, trades for work performed, etc. Those almost never work out! Keep it simple and clear and do not deviate from a smart business arrangement. 

7. Talk to your neighbors, letting them know the property is for rent and give them one of those spec sheets you emailed out. People love to get their friends, coworkers, or family members as neighbors instead of some random person, so they’ll be happy to spread the word.

8. Once you have your open houses and have a few great renters who are interested, you (or your property manager) will pull their credit. But don’t forget to do a criminal background check on them and call their employer and references to verify everything. If you’re ready to offer the property to someone, give them a small window (maybe 48 hours) to sign the lease and bring a significant good faith deposit toward the first month’s rent. That way, they won’t be able to waste your time or even worse, sign the lease but then walk on you when it’s time to move in.

9. You can generate interest for your rental and sweeten the pot for a renter by offering some fun bonuses they normally don’t expect. For instance, offering free cable television or Internet for six months or a gift card to a grocery store once they move in will garner interest and put you ahead of other rental options- your competition. Remember that you want as many serious, motivated, and realistic people to apply as possible so you can make a great choice – not settle.

10. Keep the rent low to attract plenty of great tenants but you can make up for any perceived losses by negotiating utilities and extras. Write into the contract that the tenant pays for landscaping, water service, etc. to recover a few dollars. Prorate an early move in date before the first of the next month to gain a chunk of change. Write in the contract that they’re responsible for small fixes – perhaps, under $50 – so you won’t have to deal with changing every light bulb, fixing every clogged toilet etc. 

11. Keep rent low but have high penalties for late payments in the contract. If a tenant does what they’re supposed to do, they’ll benefit. But if they start paying late or miss payments, you’ll be well compensated for your time and inconvenience. 

12. Yearlong rental contracts have little benefit to the landlord (in certain markets) because if a tenant is going to move out, they’ll do so anyways. So consider a month-to-month lease with slight rental increases built in – like 5% every six months. Keep the increases small so they barely notice but explain this is how you can afford to charge lower rent from the start. It’s much easier – and cheaper – for them to stay put and not go through the hassle of moving all over again.

If you have any questions or just would like to know what rents are going for in a certain neighborhood, give Vienna Property Management in Rocklin, Ca a call – they’re great people and do a wonderful job turning rental properties into efficient cash-flowing investments!  

Calculating the right rent for your investment property.

Owning rental property is one of the soundest investments you could make, to the extent that 90% of millionaires have income-producing property in their portfolio.  But making day-to-day decisions to manage those properties can be challenging if your not properly informed.  There is no greater decision than what rent to charge a new tenant.

If you read all the books on real estate investing, they cite a general rule as industry standard: To calculate rent, take 1.1% of the home’s value.  That means if your rental property is worth $100,000, the rent should be $1,100.  If it’s a $200,000 rental house, the rent will be $2,200. 

Universal axioms like that are dangerous when you’re talking about real estate because there are no “one size fits all” solutions.  For instance, good luck getting 1.1% in California, where the median home price is much higher than the rest of the country.  The good news about owning property in California is that our appreciation rates are much higher than the rest of the country during healthy markets – as we’ve seen with nearly 25% appreciation since 2012 in the Sacramento area.  Also, whether you’re renting a house, a halfplex or duplex, condominium, or apartment in a building you own has a huge impact on what rental price is appropriate. 

Assuming that you have a single-family residence or halfplex or one side of a duplex (not a condo or apartment) in a decent neighborhood in the Sacramento region, how do you price your rent?

First off, let me cover the three priorities of any landlord to frame the conversation.

In reality, you have three goals as a landlord, in this order:

1. Avoid vacancies.

2. Get a renter who pays on time and doesn’t trash your unit.

3. Get a renter who stays long term.

A renter who stays long term and pays on time helps minimize time, energy, and money-consuming transitions, where 90% of your work as a landlord will occur.  Of course you want someone who takes reasonably good care of the property so your fix-up costs (above their damage deposit) will be minimal. 

And vacancies?  Those are the enemy of the landlord – the monkey wrench that throws all of your calculations on profit out of whack.  Point blank: vacancies kill landlord profits. 

The reason I bring this up is because too often, landlords try to charge the highest monthly rent they can manage, thinking it’s good business to boost their monthly income as high as they can “get away with.”  But in reality, charging rent that’s above fair market value is detrimental to their business model.  Why?  They’ll have a smaller pool of applicants (who may have shaky credentials,) the tenants will move out more frequently or cause more problems, and it will take longer to rent the unit – all factors that contribute to a high vacancy rate.

Imagine that we have a house in a neighborhood where most similar properties rent for $1,200 a month.  At that price it’s easy to find good renters so let’s say the unit will have a paying tenant 12 months a year.  That equals $14,400 a year in rental income.  But if the landlord gets a little greedy and tries to charge $1,300 a month in rent it takes longer to find a tenant or they move out before the year is up.  If it’s occupied 11 months out of the year at $1,300, that comes to $14,300 a year profit.  If it’s vacant for two months, the total profit is only $13,000.  It doesn’t seem like much, but any benefit of trying to squeeze an extra $100 a month in rent is wiped out by even one month’s vacancy.

So as we determine a price for your rental property, we have those three goals in mind. What we want to offer is a rental price that is fair, a win-win for both the tenant and the landlord.  I even like to price my rentals slightly below market value because I attract far more applicants.  I can take my pick of those with the best credit score, income, stable jobs, etc. and I end up earning far more profit by eliminating vacancies, evictions, maintenance, etc. 

Here are the steps in determining the rental price that’s best for you:

1. Compare apples to apples.

When researching what other similar homes are going for, make sure you look in the same neighborhood and at the same type of property.  Don’t compare a condominium to a house, a unit in Granite Bay to one in Citrus Heights, etc.

2. Look into Craig’s List and other websites.

Do your homework online by looking into Craigslist and other websites that advertise rental properties.  This will give you a good sense of what other landlords are charging – your competition – and what options a renter has.  You’ll come up with an accurate range – low, average, and high rental prices. 

3. Talk to neighbors.

Knock on a few doors, announcing your intention to rent the property and inquiring what rents are going for in the neighborhood.  You may be surprised at the answers!

4. Add or subtract for amenities.

Honestly assess what your property has to offer.  If you have new appliances, new carpet, and a hot tub, you may be able to charge slightly more than a unit with old amenities in worse condition.  But you still shouldn’t get too happy adding extra money to fair market rent just because your property is in good condition – that’s almost a necessity.  It will help you attract more and better applicants, but definitely subtract off the rental price if your property is outdated or needs work.

5. Test the market.

As you put your house up for rent and start advertising, listen carefully to what the market tells you.  If you get no calls or interest, your price is way too high.  If you get a few people looking but none want to rent it, they’re finding better and cheaper properties to rent.  The more interest you generate, the closer you are to the fair market value price.  

6. Have a set schedule of price reductions every week or two.  That way, you’ll know you tested the market so you’re not leaving any money on the table, but you’ll get it rented soon without those dreaded vacancies.

7. Talk to a property manager.

The most efficient way to make these rental headaches disappear is to hire a property management firm.  A well-established company like Vienna Property Management in the Sacramento area has an intimate knowledge of rental prices, a pool of tenants looking, and all the marketing channels you need.  If you think big picture, their help will free up your time and energy and eliminate vacancies, evictions, etc. – saving you money overall even with their small fees.

If you need any help or would like some advice about pricing your rental property, give Vienna Property Management a call (916-520-1712) or email.  They're great people and do a wonderful job turning rental properties into cash flowing smart investments!