Real Estate Investing Basics

Scared to Take the Plunge Into Real Estate Investing? Try This!

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On a recent BiggerPockets Real Estate Podcast episode, I addressed a question from a listener that I get from a lot of people: “As a fairly new investor, are there any tips, tricks, or methods that you would use to get past the analysis paralysis and feel confident about a property?”

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Analysis paralysis is a term describing when a new real estate investor is so caught up on which strategy to choose, how to execute it, and whether or not they will make a mistake that it ultimately leads to them never taking action at all.

Here’s my take on this issue.

The No. 1 Way to Overcome Analysis Paralysis

So, the short answer is I don’t have any tips and tricks other than just putting in the hours, putting in the reps.

It’s kind of like asking if there are any tips and tricks to get over being sore when you first start working out. Not really! I mean, yeah, you can get a massage and it might help a little bit. But really you’re just going to be sore. And until you do it enough, you’re always going to be sore.

Therefore, the best tip I have is make it a regular routine. Make it so you’re no longer a newbie.

Analyze Deals Every Day

In other words, analyze deals every day. In fact, I usually tell people to analyze 100 deals before you make your first offer. Think about it: If you did three properties every day for the next month, when you run the numbers in the beginning, it's going to be painful. You're not going to know what to do—which button to press or how to analyze it correctly or whatever.

Related: Hesitant to Invest? Hack Your Way Out of Analysis Paralysis

But after a month of that, you’re going to be a rock star. You’re going to have all those little things figured out and it’s not going to be hard anymore. There’s not going to be pain when you work out, so to speak.

And so the best tip or trick I have to get past analysis paralysis is just get so good at analyzing deals that you’re not afraid to make offers—that you’re not nervous—because you’re confident you know exactly what you’re doing.

And that just comes from “reps.”

Consult Seasoned Investors

Now, one thing I could add on, though, is it’s one thing to analyze deals. But then take your numbers and go meet with local real estate investors in your market and compare those numbers to what they’re doing.

Ask them, “Hey, you know, does this look about right to you?”

Sure, not every investor—or even every good investor—in your market is going to actually know their numbers. Many investors out there just buy stuff and hope it works out. And at the end of the year, they’re actually not making money. They just think they are.

Related: Rental Property Numbers So Easy You Can Calculate Them on a Napkin (With Real-Life Example!)

So, be careful that even if a local investor says, “Oh, yeah. You’re doing fine.”

Make sure you’ve actually done your numbers to make sure that they’re correct. Don’t forget to include things like capital expenditures and repairs and property management (if you’re not going to manage yourself).

Hope this is helpful for you!

What’s holding you back from getting started? How can I help? 

Let’s talk in the comment section below!

Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
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    Account Closed
    Replied 7 months ago
    Great advice Brandon. However, I believe most wannabe Investors never get actually get started, e.g. they never write that first Offer etc. I have a friend who owns a modest Physical Fitness Gym. Once while working out mid day, mid week I noticed how slow It was, perhaps a dozen people exercising. I asked my friend how he managed to keep his doors open and bills paid with such a paucity of members. He smile and asked if I knew how many paying members he had. I had no idea. "About 4,000" He replied. I was amazed, if just 10% or 400 members showed up he would have 25 people deep waiting at each machine. Chaos would follow. "It's all a numbers game" He told me. I will never forget what he said and to me the same applies to investment real estate. Candidly, most people will never enter the investment real estate ring. They will read about it from a multitude of books and courses. They will attend inexpensive Conferences and be up sold to very expensive Seminars. And for those who do place their toes into the real estate waters the majority will quickly become frustrated and quit. This is why if you master the craft there is a vast sea of riches and rewards waiting for you. Good sailing.
    Bob Landers
    Replied 7 months ago
    Great article. I’m currently pursuing Multifamily deals 10-50 units in size and am curious how others are treating in their own analysis line items that sellers vary in how they are presented. For costs associated with unit rollover like new flooring or dry wall repair, are you placing those in your OpEx (impacting NOI and sale value) or in CapEx (not impacting NOI and sale value). What about one off appliances that fail and are replaced?
    Carlos A. Hernandez
    Replied 7 months ago
    Thanks for the advice Brandon. I'm new and eager to get my feet in the water but for me i need to start building the right team.. contractors, wholesalers, lenders, etc.. appreciate the tips.
    Matthew Smith
    Replied 7 months ago
    I definitely think this is a helpful article as newbie. I think my main hangup would be rehab cost estimation in doing these analyses. I understand the part about bringing numbers to local investors to get an opinion, but is there a good way to get some "reps" via getting in contact with contractors to analyze rehab projects/costs? To me I feel like I would be bugging a contractor for what essentially is a deal that I am using as practice, which feels unfair for the contractor, but would be helpful for me. I do plan on reading the Book on Estimating Rehab Costs, but just curious is there is a good way to not feel like I am putting someone out for purposes of practice.
    Henry Hogeterp Flipper/Rehabber from Grand Rapids, MI
    Replied 7 months ago
    Heh Brandon! I love your podcasts! Listen to them every day on the way to work. I'm definitely a newbie though my wife and I both rehabed our houses and made a good profit. We just bought a wonderful place we're going to house hack and then turn into a BnB once the kids are moved out. We're planning to flip a few places and then transition to a BRRR strategy. Thank you for encouraging us and giving us the hope that we can do this!
    Scott Travis
    Replied 7 months ago
    Brandon, you are a huge inspiration! I can do the analysis without breaking a sweat. The scary part (other than being flat broke and needing to use and steward OPM to do this) is that I don't know how to find out exactly what a property will rent for. I'm in a still-rural part of florida but there is huge growth happening in the form of several trucking and warehousing companies building brand new facilities plus a massive reconstruction of a major east-west highway running right thru my area. Most of the properties I analyze come up really tight leaving no room for error on the rents. Any thoughts on how to get that part right? I want to pull the trigger so badly, but I don't want to lose someone else's money.
    Martin Roberts
    Replied 5 months ago
    Brandon how can I PM you directly