3 Tips Real Estate Investors Can Learn from Online Casino Players

3 Tips Real Estate Investors Can Learn from Online Casino Players

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Game-of-chance players have plenty of great tips to offer to real-estate investors. And, no, raising money for property investment by gambling is not one of them. Still, there are a lot of similarities between playing games of chance and investing.

Both concepts revolve around risk and reward. You can’t hope to win or gain ROI if you do not invest. One could say that casino players understand this on a more fundamental level than others. Real-estate investors are often backed by large banks or companies. Pro gamblers always put their own money at stake.

With this in mind, you can still learn from them. But, before applying casino playing tips and tricks to real-instate investing, it’s important to understand the key differences between investing and gambling.

Gambling vs. Investment

Chances are you’ve heard someone say that investing in stocks is no different than gambling. While there is some truth to that, there are still plenty of differences between gambling and investing. The key difference lies in the amount of information you have at your disposal.

Unlike casino players, real-estate investors usually have a wealth of information at their disposal. When buying property, there are countless factors you can take into account, what’s happening in your market niche being just one of them.

Games of chance have a lot of limitations in this area. For instance, when you are playing games of chance, you cannot see things like the history of the table.

Even though professional casino players are great at risk management, the odds are stacked against them. Statistically, real-estate investing is a much more viable long-term solution. Keep in mind, when you are buying property, starting a business, or investing in stocks, you have much more information to rely on than a professional casino player does.

Invest With Your Brain

There are a lot of emotional and sentimental elements in gambling, no matter how tactical it appears on the outside. The best professional gamblers are the ones who take their emotions out of the equation.

The same goes for real-estate investors. Betting on your favorite sports team because you are emotionally attached to it is comparable to buying property in your home town just because you miss it.

But, a professional casino player will look at the odds before placing a bet. They won’t bet on their favorite team when the chances are not on their side. Now, this doesn’t mean you can’t look into property you like.

Just don’t let emotions cloud your judgment. Instead of making emotionally fueled investments, look into real opportunities. Don’t invest with your heart, invest with your brain.

Stick to Your Own Strategy

Not all games of chances are equal. When it comes to online gambling, there are several different types of casino games and some of those games require proper skills. For instance, instant win games like the lottery or scratch cards don’t require any skills and there isn’t any room for strategizing.

Blackjack and poker, on the other hand, aren’t just games of chances. They are skill games as well. Blackjack and poker pros have their own strategies. When you’re watching the World Series of Poker final table, you can rest assured that each one of those players has spent years building their own strategy.

More importantly, they always stick to their strategy, even though they are unlikely to win every single time. As a real-estate investor, you need to develop your own strategy. You’ll make mistakes, you’ll learn from them, and you will tweak your strategy accordingly.

Like professional poker players, investors realize that experience is vital. Experience allows you to build a strategy that works. Each time you swap your strategy for a new one, you start from scratch. That doesn’t allow you to build on your experience.

Recognize the Right Move

A pro casino player knows that the last hand they play has nothing to do with the next one. Not knowing when to leave the table is the biggest mistake a gambler can make. If you make a poor investment, you must come to terms with it on time.

You need to know when to bail out—just like a professional blackjack player. Even if all of your previous investments paid off, that doesn’t mean everything you touch will eventually turn into gold.

To ensure you know when to leave before you start losing serious money, use statistical information and read the market. It will help you avoid pouring in more money into something that is not giving any return.

Takeaway

The most important rule is—don’t gamble. Consider blackjack: when played right, it’s not gambling. Even though it is a casino game, the best players know how to leverage mathematics to win at blackjack.

And, even though real-estate investment isn’t gambling, there are risks that can easily turn it into a game of chance. When you take calculated risks, always make sure it's not a gamble. To become a successful real-estate investor, always base your decisions on probabilities and statistics.

{Other Images:10:full:center}Jessie Connor