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Whatever walk of life you’re from, when you learn one of the most necessary skills every property investor needs, it will bleed over into other areas of your life, but only if you nourish that skill until it becomes a habit.
The skill I’m referring to is that of observation, otherwise known as “due diligence.”
Investopedia defines due diligence as, “the care a reasonable person should take before entering into an agreement or a transaction with another party.”
What this means, in essence, is that we must carefully examine all of the details of a given situation – whether we’re discussing a potential investment or something as ordinary as choosing the right insurance policy for our home.
A key part of due diligence involves the concept of critical thinking.
Critical thinking is defined as “the objective analysis and evaluation of an issue in order to form a judgment.” We must think critically if we’re to have any hope of performing our due diligence well.
If we look at the facts with a closed mind – with a preconceived idea about the subject – we may overlook a number of variables that could make us a profit.
For example, if you have always believed that investing in regional areas has no potential for profit you may miss out on some fantastic growth opportunities. There have been – and continues to be – a number of regional suburbs which deliver great returns.
Rather than go through life on autopilot, shake up your preconceived ideas and notions about a topic. Use your powers of observation and critical thinking skills to determine for yourself if something is truly worth pursuing.
Finally, realise that once your due diligence skills become second nature – through repeated use – you will never look at property – or anything else for that matter in the same way ever again!