Feeling overwhelmed and discouraged
New to Real Estate · Baton Rouge, LA · Member since 2023 · 1 post · 17 votes
Feeling overwhelmed and discouraged
Most Popular Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes@Kenneth D. - BiggerPockets is built for you. This is the challenge. You are right on track, you are doing it right, and everyone feels this way when starting out. We have these forums, the podcasts, books, and more. Please email me at [email protected] and I will send you a free copy of one of the books to get you started.
Aside from that, it is an immersion. Many (most? All?) of the investors here go through an immersion period of literally 100+ hours, including books, forum lurking/posting, blog reading, YouTube video watching, networking with agents and other investors, etc.
That's before they feel COMFORTABLE with even taking the next steps towards buying that first property.
And yes, being two years away from that first or next down payment is totally normal. Many investors, certainly myself, went through a 12-15-24 month "grind" to accumulate the cash to invest in real estate. A grind that repeats between each of the early deals. It can be frustrating watching hotshot social media stars seemingly getting to the endgame overnight, but know that for every smiling photo on the beach are underlying risks/advantages/secrets that may not be exposed on the surface. Some of those who got rich quickest will give it all right back. But, if you approach it as a grind, with a long-term outlook, you can look up in 7-10 years with a solid pile of equity and a surprisingly large and/or reliable stream of income.
You are doing it right. Sit back, make REI self-education a hobby, on the side, for free or the cost of a few books, and when you are well-capitalized, speak the language of REI fluently, and have a clear and compelling thesis for the type of deal that will meet your goals, set yourself up to act with a combination of boldness and conservatism that feels right for you.
91 Replies
- Round Rock, TX · Member since 2023 · 13 posts · 7 votes3y
@Kenneth D. You're in a great community to keep moving forward. I'm actually in a very similar situation. I'm 44 and financially not in a place to do a deal on my own for another 3 years. I'm actively working on shortening that and saving what I can at the same time, so I can hit it faster. I've also been listening to the BP and BP Rookie podcasts daily, reading these forums and r/realestateinvesting, looking for books on the topic and trying to hit the meetups. There's one tomorrow that is on my calendar then another one on Monday. I may not hit them all, every time, but I'm trying to go with the goal of meeting as many people as I can and learning from each of them.
It's okay to feel discouraged, as long as you take a breath and realize, where you are now is only momentary, and as long as you're taking steps, you'll get where you want to go.
- Investor · Cincinnati/Fort Thomas, KY · Member since 2015 · 206 posts · 183 votes3y
@Kenneth DiGiovanni Jr
Join your local groups- real estate investors association, apt association, meetup’s and network and get educated.
If you don’t have local ones or can’t go in person, the Cincinnati and the Columbus ones are completely online
with focus groups on new investors, notes, apartments, landlording, passive investing, etc.
Definitely look into notes investing, house-hacking, rental arbitrage, or renting out a room in your house to get started.
- Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes3y
You got this. KEEP LEARNING. It gets easier.
- Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes3y
YOU GOT THIS!
- Lender · Seattle, WA · Member since 2014 · 2k+ posts · 899 votes3y
@Kenneth D.- thanks 1) take a deep breath 2) get a basic idea in mind and get pre approved for this scenario ( eg.....rental property purchase 15% down payment .....) this will help get you focused / organized and educated plus this process is free and easy
- Lender · Washington DC · Member since 2015 · 2k+ posts · 2k+ votes3y
Save money, go look online what books you can order free from the library, get a Real Estate license book/ a NMLs course book/ real estate law books/ construction books. Read one a week. Get a black and white school composition book and take notes: words I need to memorize/ anacronyms/ dreams/ plans. Write down your 5 year and 10 year plan. This is a LONG game. All the secrets are out there for free. Go work part time for one of the "parts" (construction/estimation/selling/marketing/analytics/legal/accounting/apps/lending/tax/insurance...).
Ask more questions and be not afraid of someone saying no, politely ask why.
- Member since 2023 · 6 posts · 2 votes3y
I think it depends on how much you are willing to sacrifice, if you don't have a high paying job, try to find ways to get a second job and save. Education is important, so you look for books or go to YouTube, there are good channels about it. It takes time but it is worthy. Good luck in your journey.
- 3yMike ReynoldsPro Memberconstruction · Nacogdoches, TX · Member since 2011 · 2k+ posts · 1k+ votes
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
You are exactly who I was 4 years ago. I lurked on this forum for years. I learned everything I could. I was scared to pull the trigger. It was a lot to deal with.
Then I did it. I was scared and unsure, but I did it. These people here want to see you succeed. Just keep it up. I have spent 500 dollars out of pocket. 4 years later, I get to keep 5k net per month. It is possible. And yes, I am paying 8% interest. I'm still making 5k net on that 500 bucks from December 2019.
You do the math. I don't know( and don't care) the number. This stuff works. Listen and pay attention to the ones that have really made it. They don't boast or act like they are better than anyone here. They had their first day also. Every bit of valuable info I got here was free.
- Investor · Arvada, CO · Member since 2021 · 8 posts · 0 votes3y
It's never too late, I started at 47.
Ask questions at the meet ups, the people you want to be around will have no trouble taking the time to get you excited about investing.
There are other ways to get started without investing a bunch of capital.
And now is the BEST time to get educated and be prepared for when the time is right for you.
- Houston, TX · Member since 2015 · 261 posts · 170 votes3y
First, I think you did the best thing by going to the local meet up. Keep going, grab a beer and make small talk with as many people as you can. After the regulars keep seeing you attend and you become a regular yourself, you may get filled in on opportunities that may not require a lot of initial $$ or maybe get the opportunity to partner up with someone in your same position.
- New to Real Estate · Grand Prairie, TX · Member since 2023 · 54 posts · 30 votes3y
Kenneth you bring up a great topic and feeling I'm experiencing as well:
Contributing in a new space was one of my first questions too. What's great is how encouraging and nice everyone was about jumping in when you can and that you have something you can contribute! Experiences, location, background all play a role and create community here.
I'm a newbie as well and I will say learning has really helped build my confidence. I joined a bootcamp specifically for the area of real estate I'm interested in learning and what's been awesome is connecting with so many other people with insights, tips and ideas. Having accountability partners and groups has been a MAJOR hack. Not just the forum but even the smaller team of talking and reaching our goals together. Hope this helps and you got this!!!!!
- Investor · CO · Member since 2016 · 757 posts · 1k+ votes3y
Welcome!
We have all been there, and somethings the pros feel the same. To me its feels a bit like analysis paralysis. Here are the top five reasons I’ve come across:
- Information Overload: The real estate market is complex and constantly changing. Investors have access to a vast amount of information, including property values, market trends, financing options, Gurus, and more. Trying to process all this data can lead to paralysis as investors struggle to filter out what's relevant and make informed decisions.
- Fear of Making Mistakes: Real estate investments often involve significant sums of money. The fear of making a wrong decision, buying a property with hidden issues, or missing out on a better opportunity can lead investors to second-guess themselves and delay making a decision.
- Lack of Confidence: New or inexperienced investors may lack the confidence to assess properties accurately and evaluate potential risks. This lack of confidence can lead to overthinking and constant research without taking the plunge.
- Perfectionism: Some investors set unrealistically high standards for their investments, aiming to find the "perfect" property or deal. This pursuit of perfection can lead to analysis paralysis, as it becomes challenging to find a property that meets all criteria.
- Decision Fatigue: Analyzing properties, financing options, and market trends requires mental effort. Over time, this continuous decision-making process can lead to decision fatigue, where the ability to make sound judgments becomes compromised. As a result, investors might find themselves stuck in a cycle of over-analysis.
To overcome analysis paralysis, I advise real estate investors to take several steps:
- Set Clear Criteria: Define specific investment criteria and goals. This narrows down the options and helps investors focus on properties that align with their objectives. Keep it short and simple! You are not running a fund or a syndication.
- Create a Timeline: Establish a timeline for decision-making. Having a structured approach can prevent investors from endlessly researching and encourage them to take action within a reasonable timeframe.
- Seek Expert Advice: Consulting with experienced real estate professionals, such as agents, brokers, or mentors, can provide valuable insights and help investors feel more confident in their decisions. Find a trusted thought partner, forums can be helpful, but often lead back to issue #1.
- Start Small: If a large investment seems overwhelming, consider starting with a smaller property or investment. Gaining experience and confidence on a smaller scale can reduce the fear of making mistakes.
- Limit Research Time: Allocate a specific amount of time for research and analysis. This prevents information overload and forces investors to focus on the most critical aspects. Think the 80/20 rule.
- Practice Decision-Making: Making decisions is a skill that can be practiced and refined. Start with smaller decisions and work up to larger ones to build confidence in your judgment.
Remember that while thorough research is important, there comes a point where taking action is crucial for progress. Balancing analysis with action is key to successful real estate investing.
- 3yAlecia LovelessPro MemberMember since 2019 · 3k+ posts · 2k+ votes
@Kenneth DiGiovanni Jr I started small 26 years ago with some partners. It went terribly wrong. I kept at it. I bought another property. I had a bad experience placing friends in my rental. I decided Real Estate Investing (REI) wasn't for me. I quit before one of the greatest investment periods ever.
Fast forward 22 years I needed a quick way to fund my retirement. I knew REI would be the best way. I sold my Bed and Breakfast and have since bought 8 properties and had to sell one of them. I've really learned as I've gone along.
By following BP, reading a lot of books, listening to the podcasts, and reading the forums I’ve now learned how to screen tenants, write leases, run the business, build my team. It takes time, but you can do this. Keep going to the meet ups. Even if you don’t understand everything you can network. Meet people. You may find your first deal that way!
It takes time but you’ll learn as you go. Start with a smaller property and scale once you’ve got some experience. You never stop learning, you can do this!
- Investor · Fort Lauderdale, FL · Member since 2020 · 1k+ posts · 755 votes3y
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
Don't give up on yourself. If you don't have the money/credit right now, you can still have the time to get educated and eventually it will feel a bit easier. Nothing wrong with feeling upset or overwhelmed, digest it and move passed it by learning. You'll be ok, it's not as difficult as it looks
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
1. Start with BiggerPockets Ultimate Beginners Guide (free). It will familiarize you with the basic terminology and benefits. Then you can read a more in-depth book like The Book On Rental Property Investing by Brandon Turner or The Unofficial Guide to Real Estate Investing by Spencer Strauss.
2. Get your finances in order. Get rid of debt, build a budget, and save. The idea that you can build wealth without putting any money into it is a recipe for disaster and the sales pitch of gurus trying to steal your money. A wise investor will not try to get rich quick with shortcuts. If you can't keep control of your personal finances, you are highly unlikely to succeed in real estate investing. Check out my personal favorite, Set For Life by Scott Trench , or The Total Money Makeover by Dave Ramsey.
3. As you read these books, watch the BiggerPockets podcasts. This will clarify and reinforce what you are reading. You can hear real-world examples of how others have built their investment portfolio and (hopefully) learn to avoid their mistakes.
4. NETWORK!!! Get out of your comfort zone. Stop hanging out with your deadbeat buddies that spend all day drinking, talking sports, and otherwise wasting away. Go to BUILD YOUR TEAM at the top of the screen and look for local investors or meetups in your area. You can also find real estate investing groups through meetup.com, facebook, or a Google search. Birds of a feather flock together!5. Now you need to figure out how to find deals and pay for them. Again, the BiggerPockets store has some books for this or you can learn by watching podcasts, reading blogs, and interacting on the forum. There is a handy search bar in the upper right that makes it easy to find previous discussions, blogs, podcasts, and other resources. BiggerPockets also has a calculator you can use to analyze deals and I highly recommend you start this as soon as possible, even if you are not ready to buy. If you consistently analyze properties, it will be much easier to recognize a good deal when it shows up. Find Brandon's videos on YouTube for the "four square" method of analyzing homes and practice. It doesn't take long to learn how to spot a good deal.
6. Study the market. You can learn to do this on your own or get a rockstar REALTOR to lead the way. I highly recommend a well-qualified REALTOR that works with investors and knows how to best help you.7. Jump in! Far too many get stuck in the "paralysis by analysis" stage, thinking they just don't know enough to get started. The truth is, you could read 100 books and still not know enough because certain things need to be learned through trial-and-error. You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.
You can build a basic understanding of investing in 3-6 months. How long it takes to be financially ready is different for everyone. Once you're ready, create a goal (e.g. "I will buy at least one single-family home, duplex, triplex, or fourplex before the end of 2019") and then do it. Real estate investing is a pretty forgiving world and the average person can still make money even with some pretty big mistakes.
The DIY Landlord Book4.7248 Reviews - 3yRemington LymanBusiness MemberReal Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
Just keep going to meetups and ask questions. Eventually you will get caught up to speed!
- Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes3y
Quote from @Kenneth D.:
I'm 43 and wanted to invest in real estate. I am trying to learn but for whatever reason it feels over my head. What resources exist for absolute beginners? I tried going to a local meetup and felt really out of place. Speakers immediately started using acronyms I had no idea what was going on. Also financially I don't know if this will make sense. Even assuming best case scenario the soonest I can save 25% down is another 2 years away. I spoke with a property management company and she was helpful but I just don't think I can do this.
Take those two years while saving to read some inspirational and real estate investing books like Think and Grow Rich, The Secret, and The Millionaire Real Estate Investor. Also, keep attending the meetups and be very vulnerable. Let them know your new and don't know what some of those terms are. Those meetings are for people like you to learn and for people to network and do deals.
- Wholesaler · Jeffersonville, IN · Member since 2012 · 40 posts · 5 votes3y
@Kenneth DiGiovanni Jr what are your goals or what are you trying to accomplish? There are so many different ways you can make money in real estate. Find you a local investor and ask if you can take them out to dinner or lunch and ask them how you can bring value to their business. Let them know your goals and see if you could create a partnership by helping each other. This goes a long way instead of just saying you need help or like to pick their brain.
- Developer · St. Augustine, FL · Member since 2018 · 311 posts · 384 votes3y
RE is not a get rich quick scheme. It's a long term investment. Think in terms of 5-10 years.
Here is a treatment for you and this will sound opposite to what everyone else is telling you here: what you are experience is burnout, seeing so many success stories around you (I call them toxic motivational stories) but they aren't you discourages you. I would recommend you unplug from any RE and social technology for a quick break. Go out enjoy the nature, family and friends. Don't use computer or phone unless it's work related. You will recover and come back in a week or two.
There is really no need to hurry here. The only urgency you are creating come from you and your social circles.
- 3yIan WalshBusiness MemberLender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
Keep going to your local real estate events and focus on the basics. Learn your market and learn to market. Don't get overwhelmed by complex shiny strategies. Find the one that fits your personality and pursue it.
- Rental Property Investor · Knoxville, TN · Member since 2018 · 24 posts · 28 votes3y
@Kenneth DiGiovanni Jr
I didn't start investing in real estate until I was 45. It doesn't matter when you start, as long as you start. As others have said, read, listen to podcasts, go to those local meet ups and voraciously consume knowledge. You'll get there, man. Good luck!
- Investor · Orlando, FL · Member since 2016 · 162 posts · 125 votes3y
It is a hard time to get into real estate but I am sure like anything if you hang in there you will eventually do it. I am sure there are many people who are just getting in now too and some of those who do not give up too soon will be successful why not join them. Most things we tackle are way harder then we think usually. Bigger pockets rookie podcast and forums would be where I would start. I been doing it a long time and I still find it hard to get a deal
- 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
Today you do your first deal. Not tomorrow. Want you to do a deal analysis today and post it. Ask for advice. Do not worry about being correct. Keep doing deal analysis and asking for input. Stop reading posts, podcasts, YouTube, books, etc. Stsrt going to meetups and ask them to look at your analysis after you have done 5 with us.
1. 1555 Plank Road. Want you to buy it. Put muscle to it. Rent it out. Live there in a small corner, 10x15. Run the numbers Do a deal analysis.
2. Already thinking about lunch. Post a picture of a stick of Boudin for me. That’s how much you owe me.
3. Go to the Starting Out section and read all of my posts. Mentor 1 thru ??
4. Go to your realtor and tell them how
Much money you can put down, your family size, household payroll. Tell them you would like a zero down, 3% interest mortgage. Ask them to show you properties that will fit that, if you qualify.
5. You're too old, otherwise I would tell you to join the military. Guaranteed millionaire in 20 years in REI. You could join Civil service but you would have to go overseas.
6. Cash snowball. Take your cash and make it grow. Texas property tax sales. Land only, not houses. $10,000 sale for $50,000. $8,000 sale for $200,000.
7. Before you do anything, you have to decide if you're an investor or an operator. If you're just an investor stick to the stock market and 401k. If you want to be an REI operator, bad stuff will happen and you find a solution. You want to get through the learning curve as fast as possible.
8. Habitat for humanity. Start working with them.9. If you play video games and watch Facebook or something else all the time, stop. It's REI time.
10. Don't talk with any of your family or friends about REI. None of them.
Start small and Make Your Big Mistakes Early. - 3yHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
Have a realtor walk you thru USDA rural development 502 direct loan. See if you meet the qualifications.
- Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes3y
Just remember that all of us started in the same spot as you. Just focus on your first deal and learn everything you can.
My biggest suggestion though is to learn how seller financing works especially in high-interest-rate environments.
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