Am I Crazy....or do a lot of newbies feel this way??

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Am I Crazy....or do a lot of newbies feel this way??

Edmund Ricker
Gorham, ME · Member since 2016 · 224 posts · 116 votes

Ok folks....I need some solid advice and answers here.  I am having trouble getting over the fear that if I make an offer it might actually be accepted!  I am very new to real estate investing and am at the early stages of setting goals and making a plan that makes sense.  

Just wanted to hear from others on whether or not they had this fear and how they overcame it.

Thanks,

Ed

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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
10y

@Zach Fairfield @Scott D Fitts - Easiest way to get over this, so you can make future offers with confidence, is to just go make some stupid and ridiculously lowball "can't lose" offer on the next thing that catches your eye.

Zero reason to be nervous about an offer at the "can't lose" price point.

99% chance that it's not going to be accepted, so it really doesn't matter.

And you know what, if it does get accepted by some miracle of fate? Great, all the better! That's the reason you wrote it so low that it was a "can't lose" offer.

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  • Zach Fairfield
    Investor · Portland, OR · Member since 2015 · 40 posts · 13 votes
    10y

    Well Ed, 

    I'm in the same boat and have been the last two years. I actually am signing papers on my first house ever and that will be my primary residence. That in it self has tough me a lot about the banks and realtors and in how to sell / buy a house. 

    I just bought my first list of direct mail contacts through list source yesterday. I am just going to pull the trigger send out post cards target some motivated sellers directly instead of searching the MLS scouring craigslist for a property that might be a deal. I want the owner to call me tell me they want cash for their house and I am going to have to step to the plate and make it happen.

    I will say that I have that fear that I will not be good enough, that I wont be able to do it. However, I have listened to enough bigger pockets pod casts of people who are taking action, that I decided to take one small step at a time and the rest will just work it self out. 

    1Reply
  • Edmund Ricker
    OP
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    10y
    Hi Zachary, Congrats on the house! We just closed on a new primary residence in January. My biggest fear is finding the right deal, making an offer/getting it accepted and then not being able to finance the deal and looking like a chump!
    0Reply
  • Scott D Fitts
    Investor · Saco, ME · Member since 2016 · 47 posts · 21 votes
    10y

    Hi @Edmund Ricker,  I am in about the same boat. Have thousands invested in start-up, made a few offers and worried about what I will do if an offer is accepted  and I do not have everything lined up, between money, contractors, you name it.  Everyone says, just pull the trigger, but if I don't have the bullets or just blanks, it is likely that I'll get it through return fire.  I spend so much time in analyzing and know that many of the properties out there, I can really do something with. Everything works out on paper and have some hard money lined up, but there is much more too it.  Part of me just wants to close my eyes and jump off the cliff, which I will probably do soon.  I am going to work on some other financing strategies as insurance to have in place.  People have told me that this is normal, since RE is never guaranteed, and everyone is hesitant to do anything without guarantees. I guess it is just a matter of doing the homework and trusting our gut feelings.  Anyway, know that you are not alone...

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    10y

    Anything new is a little scary @Edmund Ricker.  Perfectly natural.

    What one can do to tackle the - my offer was accepted, now what? anxiety- is to have things lined up.  Have pre-approval from a competent lender. Get the contract and EM to the title co.  Do your inspections and follow the contingency deadlines on your contract.  It's pre-printed and pretty easy to follow.

    If you are brand-new, a quality realtor isn't a bad idea. They do cost a bit in negotiating leverage, but if it's an MLS deal anyway, a guiding hand will be priceless. Don't use the listing agent, but your own buyer's agent. They will be a huge help until you are more comfortable with the process.

    Having an agent usually kills FSBO or off-market deals, though. Those sellers are not listing for a reason, usually.

    Hang in there and best wishes!

    2Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    10y

    @Zach Fairfield @Scott D Fitts - Easiest way to get over this, so you can make future offers with confidence, is to just go make some stupid and ridiculously lowball "can't lose" offer on the next thing that catches your eye.

    Zero reason to be nervous about an offer at the "can't lose" price point.

    99% chance that it's not going to be accepted, so it really doesn't matter.

    And you know what, if it does get accepted by some miracle of fate? Great, all the better! That's the reason you wrote it so low that it was a "can't lose" offer.

    4Reply
  • Zach Fairfield
    Investor · Portland, OR · Member since 2015 · 40 posts · 13 votes
    10y

    I heard one thing on here and that is if its a good deal it will get funded or in sense fund it self. That is how I am tackling my approach. I am going to market for the really good deals and when I have one I will find a way to get the money one way or another because if I find that deal and like Chris M. said make safe cant lose offers and when they are taken I cant lose. 

    1Reply
  • Edmund Ricker
    OP
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    10y

    Thanks for the advice @Steve Vaughan!  I appreciate it.

    0Reply
  • Edmund Ricker
    OP
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    10y

    Hi @Scott D Fitts,

    I understand how you feel.  Analysis paralysis can impact many people no matter what decision they are trying to make.  My biggest worry is financing, because I have most of the other angles either well covered or close to it.  I have seen a few deals that I thought I could do something with and pretty soon I am going to put the offers out there and worry about finding the money once they are accepted.

    I met with a real estate investor a few weeks ago and he assured me that if you can find the deal and get an offer accepted, the money is always there.

    Best of luck to you and keep in touch.

    Ed

    1Reply
  • JR T.
    Financial services executive · Frederick, MD · Member since 2015 · 609 posts · 341 votes
    10y

    You certainly should never enter into a contract unless you fully intend to perform all of your duties in that agreement. Additionally you should be able to perform those duties. 

    2Reply
  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y

    @Edmund Ricker One way to be more confident moving forward is knowledge. When you don't know, what you don't know it can be scary  to take action.

    The funny thing about knowledge is you can have  LOT of it and still not have enough!  you have to have the Right Kind of knowledge. There are three key types of knowledge you need i real estate.

    • The strategies
    • How to evaluate a deal
    • Market knowledge

    I put them in that order because that is the order of strength that new investors posses of each type. You can learn the strategies here on BP. You can learn the formulas to evaluate deals here on BP. You will not learn the market sitting behind a computer. 

    You learn the market out in the streets looking at LOTs of deals. Until you do that, you will not have the confidence to move forward. 

    Good luck and start looking at lots of deals.

    3Reply
  • Edmund Ricker
    OP
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    10y
    Thanks Ned Carey ! I have read and heard many times that 100 property evals will boil down to 10 possibilities that might end up being one deal. I will have all my ducks lined up and make an offer when the time is right. Ed
    0Reply
  • Edmund Ricker
    OP
    Gorham, ME · Member since 2016 · 224 posts · 116 votes
    10y
    Ned Carey driving for dollars will soon be a regular activity for me. I plan to look at lots and lots of deals. Ed
    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Zach Fairfield  best to get your funding lined up first in the Uber hot PDX market anything that is a can't miss will need to be closed in a can't miss fashion... you may just find yourself wasting a ton of your time and energy .

    just a suggestion.. Many folks even in this market need HML or some type of funding.. so you don't want to go on the assumption that cash is just ogin to show up like magic.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    0Reply
  • Robert C.
    Investor · San Francisco, CA · Member since 2016 · 338 posts · 444 votes
    10y

    @Edmund Ricker, Personally, I still get a little queasy every time I sign on the dotted line. I think it's perfectly natural! And it's all part of the roller coaster ride. These are relatively big amounts that we're investing, so why shouldn't you get a little bit nervous? But once you take the leap, all you need to do is focus on your plan and execution. 

    I just got an offer accepted on a piece of vacant land for $950k. Leading up, I probably checked my bank account like a dozen times just to make sure I really have the cash available to close. Then there's that waiting period, when you tell yourself "well, it's okay if I don't get it, that just means less work!" Then the next second, "oh! I really hope I get this, but it's going to be so much work!". Like I said... EVERY time... Haha.

    Part of being an entrepreneur is learning to be okay with a certain level of uncertainty, and knowing that you won't know everything until you reach a point of hindsight. 

    Good luck!

    2Reply
  • Kris Mcfarlane
    Rental Property Investor · Chilliwack, B.C. · Member since 2015 · 115 posts · 37 votes
    10y

    @Ned Carey, really well said! Couldn't say it better my self. 

    @Edmund Ricker knowledge is power, but knowledge can also be a weapon of mass destruction in the wrong hands. I found it easy to be in knowledge overload when I started. The greatest battle ever fought is in the cathedral of the mind. Just one of my fav quotes. You could read the millionaire mind set or the 10x rule; both great books. 

    2Reply
  • Zach Fairfield
    Investor · Portland, OR · Member since 2015 · 40 posts · 13 votes
    10y

    @Jay Hinrichs I do plan on getting some funding in place I have been vetting out several sources. Now I will actually be marketing in central Salem since I'm moving in the sticks surrounding. As well not nearly as on fire as Pdx with lower price homes. I also plan on doing a bit of networking out here when I'm finished moving and before I actually issue any letters. But I have my list. It was a step in a direction if for nothing's nothing else. Thank you.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    some of the folks I fund are doing really good in some of the out lying areas..

    like Mollolla .. Silverton... Dallas  Monmouth... Amity etc.  good luck

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    0Reply
  • David Begley
    Investor · Atlanta, GA · Member since 2014 · 415 posts · 299 votes
    10y

    @Edmund Ricker  The fear and analysis paralysis you are experiencing is natural.  I was scared to death and found myself sabotaging offer/acceptances because I was afraid of, as you put it, "looking like a chump".  I hate to tell you this, but eventually you'll end up looking like a chump - if anyone tells you any different, they are lying to you.  You'll make mistakes but you just need to educate yourself so you can mitigate the occurrences and size of the chumpiness!  The only advice I think I'm qualified to give you, is you should become educated, surround yourself with good, smart people and then make the leap.  It really isn't as scary once you're in the thick of things, and it does get better and easier.  Good luck to you!

    0Reply
  • Christopher B.
    Rental Property Investor · Knoxville, TN · Member since 2011 · 701 posts · 531 votes
    10y

    Just wait until you're standing in the middle of your first project looking around at all the work that needs to be done while a contractor has flaked out on you and your rolodex is light for finding a replacement. Starting out can be overwhelming sometimes but trust in the power of perseverance, you will get there if you are determined to and it will get easier with time and experience. 

    0Reply
  • Zach Fairfield
    Investor · Portland, OR · Member since 2015 · 40 posts · 13 votes
    10y
    Originally posted by @Jay Hinrichs:

    some of the folks I fund are doing really good in some of the out lying areas..

    like Mollolla .. Silverton... Dallas  Monmouth... Amity etc.  good luck

     Yea I'm moving out to Mill City a little farther out but I got a great deal on a foreclosure that didn't need any work for my primary residence. Just Singned the deal yesterday now just gotta close gonna take a while using usda but hey 0 down.

    0Reply
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