How to overcome the fear of buying your first property

The fear of buying is very common among new investors. The thought of signing a paper that will obligate you to pay back thousands, or even hundreds of thousands of dollars is one of the most frightening things for any individual or family to contemplate.

Today I am sharing a few things to help those who have been scared to pull the trigger on that first property. 

1. Anyone signing the dotted line needs to be mentally invested in success.

Any person who will be signing the dotted line needs to be on board. It could be your wife, friend, partner. They need to be mentally invested in the project. If they are not, they will be a source of doubt. They will be the one whispering in your ear to quit or give up if any perception of adversity comes up. Notice I say the perception of adversity, it will not even have to be real to inspire them to run to the first escape door they can find. Even worse, they will be the ones keeping you from moving the deal forward to closing.

2. Accept that real estate debt is not bad.

A recent study predicts that home prices are going to rise significantly over the next five years. If you go out and buy a car right now, is the value going to increase after the purchase? Not very likely.

The study shows that a family who buys just one 250k home right now will create almost 50k in wealth over the next five years. This study is geared towards homeowners who will probably buy one or two homes in their lifetime, but imagine how much wealth an investor would create in five years buying three or four homes.

If you are sitting on the sidelines with fear right now, imagine the wealth you can have in five years if you start pulling the trigger now on just a few homes.

Real estate debt is not bad; it can change your life, the life of your family, and the lives of those closest to you. You have to get started now.

3. Get educated and have a plan, or find professional representation.

Fear will be fueled by the feeling of being overwhelmed. There are so many things that must be learned that relate to a real estate transaction. The best way to kill the sense of being overwhelmed is to get a fundamental education and come up with a plan. At the minimum, your plan should include:

A. The exact price point, and asset class you want to buy

B. Negotiation strategy (Knowing when to walk away)

C. Multiple exit strategies

When you have even the most basic plan in place, it will result in less anxiety about the future. Less anxiety translates into less doubt, and less doubt will allow you to have a successful transaction.

If this is your first real estate transaction, it would be wise to work with a real estate agent that will be able to guide you through the decision-making process and replace the feeling of being overwhelmed with the feeling of confidence to move forward. In virtually all scenarios buyers representation is free. So there is no excuse to go without it.

If you are struggling with the fear of pulling the trigger on your first property feel free to reach out, and I will do my best to give advice or guide you to the resources that will get you on track to closing your first deal with confidence so that you can start building wealth today.