Overcoming The Fears of Getting Started in Real Estate

Overcoming the fears of getting started in real estate and rental properties

Anyone in real estate has gotten over the fear of getting started. For most, there are two overwhelming fears: that you may lose money and that you just do not know enough about it. Here are a few fears of getting started in rental property and real estate and some ways to overcome those fears.

 

From http://dollarsandsense.sg/here-is-why-losing-money-in-investing-can-cause-you-to-lose-even-more-money/


 

Fear 1: You will lose some money eventually

Let me let you in on a little secret, everyone will lose some money at some point in real estate. No one is perfect. If you know someone that hasn’t, I want to meet them. The idea is to minimize the losses when it does happen. Loss mitigation can save your business and you should plan as best as possible.  Fear is a necessary part of the business, and if you are not fearful in some way, you will lose you shirt.

And you are behind the screen yelling, “How am I supposed to know how to plan to minimize my monetary losses?!” The answer is research. It is not the answer you want to hear, I know. How many successful company founders do you know that do not understand their business inside and out with their eyes closed, while riding a unicycle going backwards?

None. No founder succeeds by sheer dumb luck. You already know that. I am not telling you something that you do not already know. Business founders all are extremely knowledgeable about their business in some facet. You should be also.

 

Fear 2: “…but I don’t know enough about real estate”

“Well I do not have time to do research…” you say. And I answer you with the statement, “It sounds like you just do not want it bad enough.” I worked full-time, went to school full-time, and started my business. Not only that, I was able to exceed in all three and educate myself about real estate. Bragging is not my intention, it is my sincere attempt to motivate you by saying it is possible.

I made time. You can as well. Instead of looking at social media, read a book, read a real estate blog, listen to an audiobook or podcast on the way to work. Work through the fear and educate yourself.  Find a way. My point is, it is possible to educate yourself while also living an extremely busy lifestyle. Read while waiting to pick-up your child from an event or sports practice. Watch one YouTube video per night. You would be surprised at how much you can educate yourself in a short amount of time.

 

One hat, two hat, red hat, blue hat

From education comes the self-confidence to know you are making the best decision possible. In cyber security, there are terms such as white hat, black hat, grey hat, blue hat, etc. These describe hackers and specify their intentions. White hats are the good guys, black hats bad, you get it. Similarly, a real estate entrepreneur and investor must wear several hats at the same time. A CEO hat, an accountant hat, a project manager hat, you name it and you will have to wear it.

Research anything even somewhat related to real estate. The more hats you can wear successfully, the more valuable you are to your business. You will probably not be able to hire out everything you want to at first and still turn a profit.

Mortgages are one item that you should focus your research on. Financing is where you can lose a lot of money that could have been reinvested. In the long run, you want every penny to be reinvested.

Different types of real estate deals are another element to educate yourself on. Straight options, lease options, wholesale deals, fix and flips, etc. You should know what these are or do at least in theory. Knowing the specific details of each will come eventually, but it helps your confidence to understand them in concept.

Find a mentor

If you are able to spare some time, find your nearest real estate investors association. They usually have meetings once a week or so and are an extremely great way to meet like-minded investors who can guide a beginner. In my experience, most all are happy to help a beginner for free. If possible, buy a few of them lunch. Who wouldn’t accept a free lunch? It is an inexpensive way to learn and you may have a few mentors out of it.

Finding a mentor is key. Just because you do not know everything right off the bat doesn’t mean you can’t learn from the best. Show your appreciation to them and you will have the finest kind of learning there is, without making all of the beginner mistakes.

A website that may assist in your education is Bigger Pockets. They have all kinds of helpful articles on everything real estate and rental properties. Investopedia is another good site, and it has more than just real estate knowledge. Pick your niche or read everything, it is up to you. The real challenge in real estate is that it is so vast that you don’t know where to start. Why does it matter where you start? It is where you finish that counts. Just start your education, it does not matter what subject within real estate.

Education is a cumulative endeavor. Broaden your horizons and jump into the vastness that is real estate investing. The more you surround yourself with like-minded people and knowledge, the more you will absorb. You can do it, you just have to say you can.

National REIA

By Trey Stevens

Feedback@PlusFourZeros.com

Learn what I did wrong or right from My Journey in real estate and rental properties OR check out other articles on my Blog.

Heck, tell me what I did wrong by writing me at Feedback@PlusFourZeros.com.  No one is perfect, and if you see a flaw in my plan, let me know.

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