How do I get past the Start Line in Real Estate Investing?

No matter how much I try, I never get past the start line!

This issue, along with the sister-complaint of not being able to find deals, is the primary barriers to entry - at least PERCEIVED barriers - for most wannabe RE investors.

Well, I cannot argue with that fact, let alone the perception. This is what I hear most often as the reason(s) cited by seriously ambitious people who are frustrated by their failure to launch.

It is NOT their lack of interest or belief in real estate investing as a valid if not the ultimate path to wealth accumulation. Nor is it their lack of effort and accomplishment in obtaining the education, information, and knowledge. They have paid their dues, on paper, in every way they were told to proceed. But, once they arrive at the threshold of actually diving in, and buying a deal, they are stonewalled by reality. They can analyze a deal in 10 minutes. They can intelligently recite the "accepted" metrics, factors and assumptions they used in their analysis. And even a provide a lucid rationale behind choosing each value. They BELIEVE their analysis will prove out and their investment will be a winner. All they have to do now is buy it.

All systems are GO!

Having done the requisite due diligence and preparation, convinced themselves the deal looks good on paper, all systems are GO, and they are so excited they can hardly breathe! The battle cry screams out "CHARGE"! 

Houston, we have a problem.

Oops. "What now"? "How do I buy it"? "How am I going to finance it." Crestfallen, a nauseating feeling sweeps away the enthusiasm and excitement of moments ago and hopes dashed, depression sets in. And all this in the last 20 seconds! "Am I ever going to be able to do this"?

This is the purgatory most wannabe investors find themselves stuck in, seemingly for eternity. Like Sisyphus of Greek mythology, they may feel like it is hopeless, this loop of education/hope/reality you cannot seem to escape. Frustrated and depressed, they once again return to the "well of all knowledge" (aka Bigger Pockets! lol) to attempt to fill in this "gap" in their game plan, this hole in their process, this latest impediment between them and untold $Millions they dream of making...if only they could get started!

Well, sadly, this story is pervasive among new and wannabe real estate investors. Knowledge is, of course, the key to overcome this obstacle, but it is not enough. Having all of the ingredients of a recipe is not usually enough to succeed in preparing the dish. Process, steps, and procedures are also necessary. Timing too. And with investing, I assume more so than cooking, emotional aspects intrude and complicate the situation greatly. Fear, self-doubt, lack of confidence, risk aversion, mental baggage, peer pressure, status considerations, embarrassment and what else could we add to this toxic heap of deal-killing forces? Lack of money!

It is easy for older or more wealthy people to say or think "What, the people cannot afford to buy bread to eat - then let them eat cake." (Honestly, I am NOT a historian or well-read individual, but all these literary references keep popping up in my mind! ...schooling...). My experience with my own Real Estate Investing journey over the last 40 years has lead me to believe firmly that getting started is the hard part. Once a person dives in, they are often off and running thereafter and their real education then begins. Once they do their first deal, they become a self-starter and as they create their own story and success, that propels them forward thereafter. But it is the FIRST deal, taking the plunge, that stops most and was the most difficult obstacle to their succeeding.

This suggests that a concentrated focus on learning how to overcome the "getting started" obstacle would be a logical approach and pathway to success. I believe this to be the case. And as such, I also believe that there are many ways to accomplish whatever is necessary to remove the obstacle for most people. Besides education and preparation, which is a given, what is needed are tools to fill in the holes preventing the leap. Per the title of this post, learning financing tools and options to overcome lack of funds by the investor is necessary. If financing options are known, pre-arranged and available, then the investor can BELIEVE past and thru their blockage. Lots of ways to accomplish this part.

Don't go it alone.

But even when financing is figured out, the emotional and other issues still remain and must also be dealt with in order to pass thru that threshold and actually buy the deal. One of the best ways to overcome these impediments, other than education which is always assumed as a given, is having a buddy, mentor, coach or partner to help give you the confidence to let go of the training wheels, and safety bars, and JUMP in. Few people ever actually go it alone. Especially at first. So find someone who can help you pass thru the gauntlet that is in your own mind and heart, and help you emerge on the other side of the threshold, a property owner!