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Posted almost 9 years ago

Biggest Obstacle New House Flippers Face

FEAR ( False Evidence Appearing Real)

Yes, that's it!  You were probably thinking, not enough education or they didn't read the right books.  No matter how big of an investor you are, or small this is by far the biggest obstacle  new house flipper makes. 

Now this can be broken down to what I would call the top 3 primary reason of what causes the fear.  

First: The Fear Of Losing Money 

One of the most prominent reason for not taking taking actions is because of the fear you will lose money.  Now this is a very legitimate concern, and people do lose money because they do not know what they are doing.  However if people don't take action because of this fear it just tells me they are missing some of the fundamentals or few core concepts. Because I think if they understood these things then they would know how to mitigate this fear, and in some cases completely eliminate it.

Second: The Fear Of What People Will Think Of You

Now this happens all the time no matter what your age.  You tell your friends, family, and even co-workers  about your new venture. You hear people say,  "Oh good luck with that, we will see if that's going to happen".  Or your your mind tells you,  what will people say if you don't strike it rich on your first deal and so on.   

I call these people dream killers, or crabs in a bucket.  No offense against anyone that falls into that category, and lets assume their negativity stems from their own internal fears.   These people have a variety of reasons they do and say what the do.  I always fall under the notion that other people cannot determine my level of success, I DO.  The world is full of negativity, and negative people.  Your confidence, and self-esteem, or "ego" are put into question.  When you become absoutey clear in your decision to make this jump, no one, not even family will deter you from you dream. 

Point being, do not let someone's opinion of you determine your future.  Who is in control of you?  YOU!  

Third: Fear Of Trust 

Lets assume every investor/flipper comes from a variety of backgrounds or social economic status.  Perhaps they received  a lump sum of money from a trust, or recently passed family member.  Maybe they have worked 30 years at their company, and have saved a nest egg for retirement.  Perhaps they  are using hard money, and do not want to damage the relationship credit, causing a one and done scenario.  The point here is we all have something to LOSE if a deal goes south.  Of course you need to practice a certain level of caution when working with new people, but you can get caught frozen assuming everyone person, partner, or "deal" will lose you money.    

The best way I have found to quell the trust factor is understanding where it comes from.   

Trust is the foundation of all human connections, from chance encounters to friendships and intimate relationships. It governs all the interactions we have with each other. No one would drive a car or walk down a sidewalk, or board a train or an airplane, if we didn’t “trust” that other people took their responsibilities seriously, and would obey whatever rules applied to the endeavor at hand. 

The human capacity for trust and trusting isn’t meted out on an equal basis; some people are able to trust more easily than others and are, in fact, better at being trustworthy and judging trustworthiness.

Here are the 3 basic assumptions: 

  1. The assumption that if you need help, you can turn to someone you trust.
  2. The assumption that if you need support, your close person or colleague will be there for you and happy to give it.
  3. The recognition that you will be comforted and relieved by the support you’re given

As someone who has felt, firsthand, the sting of betrayal, I know that it isn’t always easy to trust, and there is never a sure thing.  Do your best to go with your gut, and stick with it no matter what your "mind" tells you.   

 HOW to Defeat your FEAR 

You do these 3 things 

Content, or Learn the fundamentals.  Bigger pockets is an ocean of information knowledge, contacts, and people willing to teach.  We have some of the greatest minds in Real Estate investing right at your finger tips.  Use it! 

But don't get caught up in analysis paralysis.  That's when you spend most of your time reading forums, and books, podcasts, mastermind groups.  These are great resources, and continue to educate yourself daily, but the words alone will not get you to close on a house.  That takes ACTION! 

Action:  Take Action where it Counts 

Now this word can be contrived in a variety of different ways.  When I use the word action I don't mean getting caught up in researching what the best software to use is, or dialing in your spreadsheet, or making sure your scripts are perfect for mailing campaigns, or how to design your business card.  Point being, don't get caught up in being "busy" on tasks that aren't income producing activities or (IPA)  It's better to go walk a neighborhood without business cards than sitting behind your computer with no leads at all. 

Community: 

This goes without saying, but in my opinion one of the most important aspects to your business.  Surround yourself with like minded individuals, and mentors who are doing the same things you are doing.  Mentors are important because they have been down the same path as you they can show you the rope and teach you where to go.  

Also, spending time with like minded individuals is important as well.  The reason being, these people will be going through the same struggles as you and can offer support.  

OK If you happened to make it to the bottom of this page, I want you to take action in  right now by scrolling down and commenting on what your BIGGEST challenge is in your house flipping business is.  I look forward to meeting you, growing a community with you and hearing of your success in house flipping today! 

Remember!  YOU ARE A CHAMPION, today and everyday.  Now go out and make your dreams come true.  



Comments (4)

  1. Nice post. It is eventually the fear that controls a lot of newbie investors, and the key is to get rid of it with knowledge. You can learn a lot by connecting with the community, but the key is to use what you've learnt, and do that first deal. Thanks for sharing!


  2. Newbie, and like what you have to say. But have no idea where to start. What started my interest was I am studying to get my real estate license. Thought why not try to get into flipping houses as well. Just not sure how to get started.

    Randy Brawdy


  3. My biggest fear to this point has been failure. Nobody wants to lose money on the first deal, of course. But if you don't try, you won't succeed. My dad always says "90% of the putts that don't make it to the hole won't go in." As it relates to REI, to me that means that if you don't put in the whole effort to make it, you never will. To deal with my fear, I was fortunate to find a real estate agent who specializes in investment properties and flipping so he is constantly looking for me and just having him as part of my team has really helped to put my fears at ease. I've put in two offers already just this week, which is two more than I put in the past few months!  My #1 piece if advise to other new investors (like myself) is to you vet out the people you have working for you and make sure that they have the same level of commitment as you. I'm confident that by surrounding yourself with people you trust and who have the same goals, everyone can win and you won't be afraid to do it.


    1. I couldn't agree more! I have solid relationships with a handpicked few REI I work with.