What to do when...you've succumbed to "Analysis Paralysis"?

Question

I am a first-time investor currently building my foundational real estate knowledge by consuming as much BP content as I can (books and podcasts!) on top of taking real estate classes in my place of residence, DC. I feel like the more I learn, the more I ponder on what the best investment strategy is to start out....I am originally from Indiana, and have most of my family relocated to Cincinnati (with my brother-in-law there being a respected real estate agent willing to help me), so am looking to maybe purchase a multifamily unit, or short-term there, but find myself doubting myself. There are so many types of properties, markets, and considerations! Any general advice for order of operations, best tier II markets to dig into, or words of wisdom for running a deal analysis? Appreciate any and all wisdom from some of the more seasoned experts!

Mike Dymski · Answer

Put down the books and podcasts and analyze real opportunities.  It will significantly accelerate execution (and defining your strategy, market, and criteria).  "Doing" is much better than "reading how to do".  Immersion.

Bruce Woodruff · Answer

Like @Mike Dymski said, stop analyzing. Back away from the books and videos, you are hiding behind them.

Go out anywhere and buy anything...start with an inexpensive LTR. You learn best by doing. I'm sure you're smart enough to not lose your pants on the first deal.

Bottom line, this is not that hard. I'd bet you that almost none of the experienced investors on here took any courses or read any books at all.

Repeat after me - this is not that hard...... :-)

Jay Thomas · Answer

What really matters is consistently taking action - that's the real key to success. Sure, you should stay informed and knowledgeable when it comes to investing but in the end, you need to go out there and get your hands dirty. Don't be afraid of making mistakes or failing - because it's through failure that we learn most effectively!  So don't be discouraged, just get out there and start investing. Who knows, you may even surprise yourself with your success! Good luck!

Eliott Elias · Answer

Education without action will just confuse you. You may even know more about real estate than I do, doesn't benefit you. Start banging out calls

Joseph Crunkilton · Answer

seconding @Mike Dymski. There's a million things to learn and factors to consider. What you need to remember is you'll most likely make mistakes, but real estate is highly forgiving. Pick a strategy that fits with your time and financial situation. Run deal analysis. If the deal works, buy it. You'll learn more from that then anything else. Plus, a lot of BP content just goes over sunshine and rainbows.

I've had nightmare tenants, evictions and massive repair bills. None of them ruined me financially or hurt my portfolio. The rental that just had all those issues is now cashflowing 2x more than it originally was.

Buying your first property will teach you more than anything you've read. Investing is a numbers game. If the numbers work, go for it.

Phommala Songkhors · Answer

i would learn how to comp, figure out the area you want to invest in, what niche you are going for, and then execute. Skip tract, call, text, email, direct mail. Learn, take action, learn and take action. Keep moving and dont get stuck in the " consuming too much info " period.

Took me 6 years of analysis paralysis for me to finally take control of my life and figure out my path.

Nathan Gesner · Answer

I agree with the others. Go talk to a lender this week and see how much you can qualify for. Then start analyzing properties in your local market. If nothing works after 30 days, consider switching to Cincinnati where you have help and analyze properties there. Set a goal to have something under contract within 90 days. Find someone willing to keep you on track or motivate you.

It's honestly simple: stop thinking and start doing. You will learn the rest through experience.

Nicholas L. · Answer

@Sally Pearson

1. do you have funds for a down payment + reserves for an investment property?  or are you still saving?

2. do you already own a primary residence in DC, or are you renting?

3. do you have the time and money to make frequent trips in person to Cincinnati to go to REIA meetings, network, and view properties?

if you do 3, this will give you an advantage.  everyone in a high cost market wants to push the "buy profitable OOS investment property 2000 miles away" button.  but: there is no such button.

JD Martin · Answer

I definitely didn't (although maybe I should have!). There's nothing wrong with reading and listening - I have a podcast on here, so I can't say anything down on it - but at some point you either do it or you don't do it. Start cheap and easy, somewhere that you know and can access. If you're in DC, you might know Cinci but you're 400 miles away. That's not an easy way to run your first property. I would think about maybe somewhere in Northern Virginia if you're in DC. Or maybe Delaware. Places you can drive to in a couple of hours at most if necessary. You can't run down the street to check on a house in Cinci.

If you start with a single family house, you always have an exit plan - selling the house to someone that wants to live in it. In the meantime you get a lot of experience in renovating, marketing, tenant relations, learning your state landlording laws.

Bruce Woodruff · Answer

Then you really just need to get out of your own way and go for it....I never had any of the above and have done really well, I'd bet most of the veterans on here never had that income or score when they started either..... :-)

What to do when...you've succumbed to "Analysis Paralysis"?

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