{"id":101293,"date":"2019-01-13T14:30:42","date_gmt":"2019-01-13T21:30:42","guid":{"rendered":"https:\/\/www.biggerpockets.com\/renewsblog\/?p=101293"},"modified":"2024-02-24T11:57:16","modified_gmt":"2024-02-24T18:57:16","slug":"dont-worry-about-loans","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/dont-worry-about-loans","title":{"rendered":"Why You Shouldn’t Worry About How Many Loans You Have in Real Estate"},"content":{"rendered":"

When it comes to RE investing, if you\u2019ve been listening to the BP podcast, roaming the forums, or reading the blog, you\u2019ve no doubt heard many people asking the question: \u201cHow many loans can I have?\u201d For those embarking on a new journey (which RE investing usually is), it is completely natural to want to understand every step you\u2019ll be taking along the way. Most of us find comfort in predictability, so when we are scared, it\u2019s only natural to try to understand every single step of the mountain in front of us we have to climb.<\/span><\/p>\n

The Problem is, Success Doesn\u2019t Work That Way<\/h2>\n

In fact, no journey really works that way. It\u2019s nice to think of success as a straight line without any hitches, ditches, or bumps in the road. But that\u2019s just not accurate. The road to success is a never-ending path of mistakes, inefficiencies, and unexpected changes in direction. My advice to you, if you want to start making some serious progress in your business, is to get OK with the fact that progress is messy, unclear, and often times involves a healthy amount of uncertainty.<\/span><\/p>\n

What I\u2019ve found over the last two years of learning a brand new trade (real estate sales as opposed to law enforcement) is that progress often comes in ways and from directions I did not expect it. I very rarely ever know what my path will look like, or what my next step will be \u2014 until I\u2019ve taken the one right in front of me.<\/span><\/p>\n

Brandon Turner and I were talking about this the other day. We have both found success is like a staircase you have to walk, but it\u2019s in the dark. And the only step you can see is the one right in front of you. It\u2019s not until you take that step that the next step is illuminated. For those willing to operate in this level of uncertainty, you\u00a0<\/span>will<\/span><\/i> find success. Just like you will find an increase in your elevation if you keep walking up stairs. The path of success isn\u2019t a problem if you\u2019re OK not having the whole road map before you start the journey. It\u2019s only a problem for those who like to know exactly what they are getting into before they get started.<\/span><\/p>\n

Let\u2019s Take a Step Back and Think About This<\/h2>\n

When we look at different professions, very few of them pay well if the average day\u2019s work is predictable. Certain jobs offer very little variety, stress, or need to think and adjust on the fly: a worker at Amazon who fills orders, an assembly line worker who does the same thing everyday, an office admin assistant who follows the same procedures all the time. These are positions that offer a high level of certainty but typically very little pay.<\/span><\/p>\n

Related:<\/strong>\u00a0What Newbies Should Know About Financing Investment Properties\u00a0<\/a><\/em><\/p>\n

Now let\u2019s consider positions that pay very well. They oftentimes also come with a very low level of certainty. A professional athlete who doesn\u2019t know which pitch is coming next, or even what team he\u2019ll play for next year, or if he\u2019ll be out on injury. Or a company CEO who is responsible for making huge adjustments on sometimes short notice. What worked yesterday isn\u2019t guaranteed to work today. A CEO needs to be able to constantly analyze data, interpret it accurately, and make prudent decisions and changes based on that data. This type of work is inherently more stressful, but also tends to pay much much better.<\/span><\/p>\n

What\u2019s My Point Here?<\/h2>\n

I\u2019m trying to help you see that for those who can overcome their fear of the unknown, those who can embrace living in a world with less certainty, there are oftentimes big rewards waiting for them! We all want security and protection, but do we think about the price we are paying? Or what we are giving up to have that? Those who are willing to operate without knowing every step of the journey are those who will reap the biggest rewards.<\/span><\/p>\n

Now to Tie This Back Into Real Estate Investing<\/h2>\n

Here\u2019s the thing, <\/span>a huge proportion of potential real estate investors never get started because they want to know every step of the journey when that is impossible to know.<\/span><\/i> If that didn\u2019t strike a chord with you, please read it again. If you are frustrated with your lack of progress, I want to bring attention to the fact that maybe it\u2019s <\/span>not<\/span><\/i> about you needing to do more, and it <\/span>is <\/span><\/i>about you needing to let go of the need to know everything.<\/span><\/p>\n

When folks are trying to start something new, there are a myriad of resources available that offer advice for how to be successful. The majority offer the same wisdom repackaged in different forms.<\/span><\/p>\n