{"id":122739,"date":"2020-02-28T05:00:17","date_gmt":"2020-02-28T12:00:17","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=122739"},"modified":"2021-03-16T14:58:55","modified_gmt":"2021-03-16T20:58:55","slug":"scared-start-real-estate-investing-try-this","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/scared-start-real-estate-investing-try-this","title":{"rendered":"Scared to Take the Plunge Into Real Estate Investing? Try This!"},"content":{"rendered":"<p>On a recent <a href=\"https:\/\/www.biggerpockets.com\/podcast\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Real Estate Podcast<\/a> episode, I addressed a question from a listener that I get from a lot of people: &#8220;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?&#8221;<\/p>\n<p>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.<\/p>\n<p>Here&#8217;s my take on this issue.<\/p>\n<h2>The No. 1 Way to Overcome Analysis Paralysis<\/h2>\n<p>So, the short answer is I don&#8217;t have any tips and tricks other than just putting in the hours, putting in the reps.<\/p>\n<p>It&#8217;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&#8217;re just going to be sore. And until you do it enough, you&#8217;re always going to be sore.<\/p>\n<p>Therefore, the best tip I have is make it a regular routine. Make it so you&#8217;re no longer a newbie.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/DLQjtOUz_JQ\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<h2>Analyze Deals Every Day<\/h2>\n<p>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&#8217;s going to be painful. You&#8217;re not going to know what to do\u2014which button to press or how to analyze it correctly or whatever.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/real-estate-hesitance-hacks\" target=\"_blank\" rel=\"noopener noreferrer\">Hesitant to Invest? Hack Your Way Out of Analysis Paralysis<\/a><\/em><\/p>\n<p>But after a month of that, you&#8217;re going to be a rock star. You&#8217;re going to have all those little things figured out and it&#8217;s not going to be hard anymore. There&#8217;s not going to be pain when you work out, so to speak.<\/p>\n<p>And so the best tip or trick I have to get past analysis paralysis is just get so good at analyzing deals that you&#8217;re not afraid to make offers\u2014that you&#8217;re not nervous\u2014because you&#8217;re confident you know exactly what you&#8217;re doing.<\/p>\n<p>And that just comes from &#8220;reps.&#8221;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-92033 size-main-slider\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/workout2-702x336.jpg\" alt=\"\" width=\"702\" height=\"336\" title=\"\"><\/p>\n<h2>Consult Seasoned Investors<\/h2>\n<p>Now, one thing I could add on, though, is it&#8217;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&#8217;re doing.<\/p>\n<p>Ask them, &#8220;Hey, you know, does this look about right to you?&#8221;<\/p>\n<p>Sure, not every investor\u2014or even every good investor\u2014in 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&#8217;re actually not making money. They just think they are.<\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2013-01-19-real-estate-math\" target=\"_blank\" rel=\"noopener noreferrer\">Rental Property Numbers So Easy You Can Calculate Them on a Napkin (With Real-Life Example!)<\/a><\/em><\/p>\n<p>So, be careful that even if a local investor says, &#8220;Oh, yeah. You&#8217;re doing fine.&#8221;<\/p>\n<p>Make sure you&#8217;ve actually done your numbers to make sure that they&#8217;re correct. Don&#8217;t forget to include things like <a href=\"https:\/\/www.biggerpockets.com\/rei\/glossary#C\" target=\"_blank\" rel=\"noopener noreferrer\">capital expenditures<\/a> and repairs and <a href=\"https:\/\/www.biggerpockets.com\/rei\/glossary#P\" target=\"_blank\" rel=\"noopener noreferrer\">property management<\/a> (if you&#8217;re not going to manage yourself).<\/p>\n<p>Hope this is helpful for you!<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/calc?utm_source=blog\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-117195\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3.jpg\" alt=\"\" width=\"728\" height=\"90\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3.jpg 728w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/10\/Signup_3-300x37.jpg 300w\" sizes=\"auto, (max-width: 728px) 100vw, 728px\" \/><\/a><\/p>\n<p><em>What&#8217;s holding you back from getting started? How can I help?\u00a0<\/em><\/p>\n<p><strong>Let&#8217;s talk in the comment section below!<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On a recent BiggerPockets Real Estate Podcast episode, I addressed a question from a listener that I get from a lot of people: &#8220;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?&#8221; Here&#8217;s my take.<\/p>\n","protected":false},"author":710,"featured_media":121384,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-122739","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/122739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/710"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=122739"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/122739\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/121384"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=122739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=122739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=122739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}