Ok, here I am after years of reading books, listening to pod casts, watching videos, subscribing to newsletters, attending seminars, scouring neighborhoods, newspapers, thrifty nickels and online sites for properties I feel as though I'm pounding my head against a wall unsure how to crash through it!!
I feel comfortable in my knowledge and suppose now I need the experienced wisdom of embarking on this grand adventure, but my brain is bursting and bellowing with all this information I just don't know where to start. Perhaps I'm making a bigger deal of this than I need to or quite honestly I'm subconsciously afraid of the unknown which inhibits me from functioning properly. Perhaps I'm drowning in excuses all of which affects my proper cognitive rationality.
So I guess this is a plea...has anyone, or is anyone experiencing this dilemma? And if so how did you break free from its oppressive tyranny?
YES I HAVE! I spent many months/years flopping around going after the next big idea. You do not know better yet everything looks like the best strategy. My advice to you is start narrowing down what you know you are not interested in. I know I have no interest at this time with note investing, funding a project that is not my own, and searching for non owner occupied unit. By knowing what I don't want that takes some of the anxiety away.
Still there is so much more. I Would love to wholesale properties but at the moment I have financing and savings in place to buy so would it be best for me to wholesale or create passive income/remove paying a mortgage ( I own SF so am listing to buy MFR, and house hack). Do I need to flip a house? Nope I have financing to buy. So I am narrowing down things and really for me what makes most sense is removing my monthly mortgage by having someone else pay it, the only way I can do that is to sell my SF (I renovate it and updated it) then move into a MFR. Once in my MFR I will house hack as best as possible then reevaluated how I can acquire my next property. I may have to start looking into wholesaling/flipping or simply saving the money I was prior putting into a mortgage.
Best advice I can give is always remember REI is a process. There is no over night answer or solution that works best for everyone. The only thing that remains the same for us all is once you give up and give in to all the pressure and anxiety that you face at the moment you no longer are an investor and you need to start over somewhere else. Stay the course and it will fall into place. I made a commitment to not giving up no matter how much pressure there is or how badly my mind feels like mush, now it is all second nature to me and I am 100% moving forward.
Keep going @Thomas Wolters!
Starting is easier than you think. You just need to get organized...with a Business Plan. Here is how I would approach it (and how I teach it):
1 - Find your Market and what works best in that market (i.e...flipping, holding, wholesaling, lease options, etc...)
2- If nothing works in your market, then find a market that does. NEVER rationalize here. Negative cash flow is the definition of "it doesn't work".
3 - Look for the opportunities in that market.
4 - Find your "exit strategies"...your buyers, tenants, etc...
5 - Analyze properties that match your "exits"
6 - Execute your business plan.
Is there a neighborhood where you would want to buy that works for buy and hold rentals?
"House-hacking" is probably the easiest way to get started in Real Estate investing. If 2-4 unit housing is available in your area, that can be a good way to start. You want to be extra careful on your tenant screening, since you are getting both tenants and neighbors. Also be sure you can handle the payment with vacancies.
I felt that way when I first started. Analysis Paralysis. What I did was I sat down and I figured out my goal and my exit strategy. To determine my goal, I had to ask myself how much risk I was willing to take. I felt more comfortable with buy and hold than wholesaling or rehabbing. Then I just had to dive right in and do it. (With the right numbers, of course).
Just line your ducks up. Get your financing ready, get on wholesale buyers list (ignore if you want to do wholesale) and when a deal comes, you're ready to dive in.
Originally posted by @Account Closed :
.. Perhaps I'm making a bigger deal of this than I need to or quite honestly I'm subconsciously afraid of the unknown which inhibits me from functioning properly. ...
I think you've pretty much nailed it here- you're no doubt making a bigger deal of it than you need to, and almost everyone has an element of fear -- conscious or otherwise -- holding them back. I actually think that imaginative people often have more of a tendency to hold themselves back in this way simply because they are more aware of all the potential pitfalls, both real and imagined.
You sound like you've got all the skills and smarts you need to make a go of this. I think you need a simple plan, based on a goal. What are you looking for? Retirement income? How far off is that? Buy one house and flip it for a profit? It doesn't matter what the goal is at this point, although I think it will help with the fear aspect if you keep it relatively modest (for now). Then work backwards from that goal. Figure out what needs to happen, ONE step at a time. When you figure out what the first step is, figure out what the one next action is that you must do to make that step happen. And do that thing! Just that thing. Then, once that is under your belt do the next thing. It's often the big picture that makes a project seem overwhelming. And the big picture is crucial, of course, but you don't need to be looking at it every minute. Or even every day. Break it down into small pieces, and eat that elephant one bite at a time.
Jean Bolger, 33 Zen Lane | http://www.solidrealestateadvice.com
First and foremost allow me to thank all of you for your wisdom and support! I am absolutely grateful that my desperate cry into oblivion was not only heard and understood, but professionally reiterated into valued motivational opinions. Thank you all!!
I suppose the fear of breaking out of "employee-ism" and having to rewire my brain outside of those confines is causing the fear to win, but now I understand that this is just the crucial step before the launch of a successful individual. Thank you all again!
there's even a name for it analysis paralysis :)
That being said even I has an investor have trouble at deal number 6 when things are slightly different . Just know there will be bumps some financial some only stress. The key is just to pump along and Babysteps it! Before you know you will be farther than you ever imagined .
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