Biggest Fear for Newbies

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Biggest Fear for Newbies

Jon Lee
Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes

Every investor no matter how experienced was a "newbie" at one time....everyone had a point where they were starting out.  

For all the NEW INVESTORS out there....what IS your biggest fear and how DO you plan to overcome it?

For all the VETERAN INVESTORS out there....what WAS your biggest fear and how DID you overcome it?

For example...when I started almost six years ago...I was terrified of not seeming "credible" as an investor until I completed my first deal.  I overcame that by committing to the process of becoming educated and scrutinizing multiple potential deals until I completed my first two flips at the same time.  Working through the process to find those first two flips in a competitive market (Las Vegas) helped me overcome the credibility anxiety.

Please share as much as you like so others can benefit from your current or past experiences.

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Bob Razler
Rental Property Investor · Boca Raton, FL · Member since 2017 · 329 posts · 237 votes
9y

Hello:

My biggest fear is that life has no intrinsic meaning or value.  That a single human or even the entire human species is insignificant, without purpose and unlikely to change in the totality of existence.  That each individual is an isolated being born into the universe, barred from knowing "why", yet compelled to invent meaning.

My second biggest fear is Jell-O.

After that, I worry most, like @Brad E. , that I make a mistake so big that it hinders my ability to move forward at the pace I desire toward my REI goals.

Bob

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  • Kevin Boyd
    Slidell, LA · Member since 2017 · 20 posts · 8 votes
    9y
    My two biggest fears are a lack of credibility and having a deal blow up in my face. I'm worried that when I approach a seller, I will come off as the inexperienced investor that I am. I'm also worried about a deal blowing up in my face. How could I make the rent if I can't get a tenant for a property?
    0Reply
  • Dylan Tettemer
    APO, AP · Member since 2016 · 168 posts · 54 votes
    9y

    I think my biggest fear is things getting out of hand and out of my control so I end up losing money or getting myself into a deep financial hole. And to overcome that, I just plan on speaking with other investors who are more experienced than me and see what their strategies are for investing

    2Reply
  • Alex Young
    San Diego, CA · Member since 2017 · 37 posts · 8 votes
    9y

    hi, i am 26 and have about $1000 dollars and afraid of starting because I litearlly don't know anything and don't have any creditionals or have even a sense for where to begin. i guess i don't even have enough money to think about these things yet

    1Reply
  • Dan Rogul
    Specialist · Rockville, MD · Member since 2016 · 4 posts · 7 votes
    9y

    My fear is probably shared by a lot of people.

    I am way too dedicated to my salaried 9 to 5 that I don't really like, but I'm good at it. The job has turned into a 5 to 9 because the reward for great work there, is more work. And I'm leaving every day, totally exhausted, but still trying to put time into growing/forming a business because I've been wanting to be in real estate since 2010. 

    I'm still worried that I might not have all of the information together to properly train hired help and that I don't have enough time to make things work because of the 5 to 9 day job. 

    I keep debating between trying to get a different 9 to 5, versus just going all in on trying to make the real estate thing work. So I'm figuratively torn between which paths to take to determine becoming successful in this. I'm also concerned that if I quit my job at this time, then lenders will see that I don't have income and that could weigh against me for raising capital.

    If these things seem at all silly to people who are currently doing deals, please let me know. I doubt I'd be the first person to spend too much energy worrying about the wrong things. 

    Thanks!

    - The Dan 

    4Reply
  • Thomas S.
    Member since 2016 · 13k+ posts · 12k+ votes
    9y

    Without a full time job you will not go far with investing unless you have a pile of cash already.

    Investing in real estate takes dedication, major amounts of time and hard work to succeed. It is similar to having a second job commitment wise and a major reason most will ultimately fail.

    It is obviously possible but does require establishing a reliable team to accomplish. Lawyer, accountant, agents, and PM.

    As with starting any business you must commit to the hours to be successful.

    0Reply
  • Jack Bailin
    Rental Property Investor · West Haven, CT · Member since 2017 · 23 posts · 17 votes
    9y

    Biggest fear as someone looking to start house hacking soon is inheriting bad tenants!

    3Reply
  • Susanna B.
    Real Estate Agent · Blythe, GA · Member since 2016 · 46 posts · 13 votes
    9y

    For me it has been such a learning curve trying to get it right without making costly mistakes. I had great training but that alone does not prepare you for the real world. I want to be competitive and come on strong but at the same time be willing to learn what others have to teach me. That for me is hard to balance. Then there is always this voice in my head wondering if I should make the move or if I am sticking my neck out too far.

    0Reply
  • Aadil Saeed
    Toronto, Ontario · Member since 2017 · 7 posts · 2 votes
    9y

    Currently, my biggest fear is, because of the position in which I am starting, failing and not being able to recover. Its a frightening concept, but to combat it, I've aligned myself with friends and mentors that are successful in this work, and can guide me whenever I need help, which right now, is all the time. 

    0Reply
  • BJ Henderson
    Raleigh, NC · Member since 2016 · 86 posts · 26 votes
    9y

    Fear will definitely hinder you from achieving whatever it is you're looking to do in your real estate business if you don't learn how to use that energy positively. 

    When I got started I feared putting out signs for my marketing, talking to sellers, spending money that I might not get back, worrying about people not wanting to sell me their home because of my skin color, not having the cash on hand to buy it, not pulling up to the house in a luxury car, etc, etc, etc...

    All these things are just inside your head. Even if some of your fears do hold some weight...who cares!!!! For those things that do hold weight, there are plenty more that don't.

    Until I was able to grasp that mentality NOTHING, and I mean NOTHING happened for me in my business. NOTHING but heartache, disappointment, and self doubt.

    Get educated, take action, and tweak. The journey from where your are now to where you're trying to go is beautiful if you just take the leap.

    You will never know everything you need to know. The only way you're going to learn is by getting yourself out there and making mistakes.

    5Reply
  • Amber Koontz
    Houston, TX · Member since 2015 · 204 posts · 68 votes
    9y

    My biggest fear was making a huge mistake that would take me out the game. I crushed my own dreams with what ifs. What brought me out of it was the Bigger Pockets community, podcasts, webinars, and the networking events found here. These past couple of months have been the most productive and the best education thus far. I said I wouldnt't go back to school for a masters until I was passionate about something. Well, I'm back in school and working on the job! Best education ever is gained through experience. I'd tell my two year younger self to put the tools to use that I'd spent so much time learning about. I'm still a newbie, but now I feel like maybe I know what I'm doing Lolz.

    1Reply
  • Andrew Morales
    Investor · Midvale, UT · Member since 2017 · 31 posts · 15 votes
    9y
    My biggest fear is getting hoodwinked by an agent or miscalculating either rehab or ARV. At this point i don't know what I don't know and I'm an easy target.
    1Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Bill Goodland...Shiny Object Syndrome is something that I STILL have to keep in check.  There are SO MANY opportunities out there that if you don't have proper focus you could get off track.  I literally have a "Shiny Object" tab in my business tracking spreadsheets where I put ideas and opportunities outside of my immediate business focus so I can go back and refer to them at a better time.  Shiny objects aren't inherently "bad"...they are just not the priority at this point in time in your business.

    2Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Raymond Leung...I don't know what your investing model is but if it's buy & hold...right now might not be the best time to invest in the bay area. It could be that you might find better ROI/cashflow deals out of state. That being said...never look at the state of the housing market as "good" or "bad". It simply "is what it is". There should never be fear in the market...just an understanding of how to navigate and acquire property in it.

    Also...if you plan to wholesale...it's always a good time to be in the market.  Wholesaling is recession-proof.  It works in both up & down markets.

    The most effective ways to find deals off market is to 1) drive for dollars, 2) door knock, or 3) prospect by calling FSBO's on Craigslist.

    If you would like to discuss further, private message me and we can schedule a phone call.  Hoped this helped.

    0Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Brittany Sanders....knock out a couple a deals while joint venturing with an experienced investor.  You can rely on them to get the transaction done while you experience the process.  Do a few transactions and your confidence will raise high enough that would wont fell like you will get taken advantage of.

    0Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Kevin Boyd...understood about the credibility.  There is nothing wrong with saying you are new and this is your first potential deal.  If the number work and you & the seller come into agreement...that's all that matters.  As for getting a tenant....find a good property manager.  They are out there...just might have to interview a few before you find a good one.

    0Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Alex Young...go network with wholesalers and rehabbers at your local REIA or Meetup investor groups. Ask if you could be a bird dog for them (someone who finds owners who want to sell or vacant properties). Go find ALL the vacant properties you can, write down the addresses and give them to whichever investor you come to agreement with for a bird dog fee ($500-$1,000 per closed property). That is probably the way you will be able to get your foot in the door in investing. Also...work on your self talk. There is a lot of negative self talk in the two sentences that you wrote and for success; to turn that around is an obstacle you will need to conquer. Best of luck to you!

    0Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Dan Rogul....DUDE!  There's a whole lot there to unpack.  Private message me and let me know when you can talk on the phone & I can give you your answers & point you in the right direction in less than ten minutes.  That would be a lot of typing to hit all that tonight. ;-)  Hope to talk with you soon!

    0Reply
  • Jon Lee
    OP
    Investor · Las Vegas, NV · Member since 2014 · 471 posts · 241 votes
    9y

    @Account Closed....the way to get over your fears is to go network with your local REIA and/or investor Meetup groups and find an experience investor that you can tag along with to experience a deal or two being completed. You rely on their experience, their belief, and their criteria & investing model to see how it is done right. There is nothing wrong with learning by experiencing through someone else...just know that after that is done a few times you should have no reason to not do it yourselves. Best of luck to all of you!

    1Reply
  • Ryan Evans
    Rental Property Investor · Cleveland, OH · Member since 2016 · 653 posts · 769 votes
    9y

    I've taken some pretty big risks and spread myself pretty thin at times. Without the  cash reserves to get through a major disaster, I could face some issues which sometimes will keep me up at night. But when I remind myself that no matter what happens I'll always "figure it out," then it's all okay. It doesn't hurt to remind myself that the worst thing that could happen to me is I lose everything and start from scratch after learning a ton in the process. Sure, it's a setback, but I'd still rather do that than work a crappy job for 40 years and live a life a mediocrity. 

    2Reply
  • Aadil Saeed
    Toronto, Ontario · Member since 2017 · 7 posts · 2 votes
    9y

    @Jon Lee Thanks for the response! The first place I was looking to invest was in and around Cleveland, OH. I want to both buy and hold, as well as fix and flip. Do you have any advice specific to that area?

    0Reply
  • Shenise America Tavares
    Columbus, OH · Member since 2017 · 5 posts · 1 vote
    9y

    I think my biggest fear is never taking action. I'm a stay-at-home mom and struggle with an overall sense of being a burden, so the thought of losing the little money we have in a bad decision makes me hesitant. My husband and I both come from long lines of generational poverty and grew up not knowing anything about credit/homeownership/investing/life insurance/etc. I want to end this cycle and pass down something of value to our children, but being hit with so much new information is terrifying and overwhelming.


    To fix this I'm trying to build up my confidence and push myself to make solid plans. I've been using the rental property calculator to run numbers on listings I find and it seems TOO easy. I start doubting myself and my calculations. I need to trust myself enough to take that first step so that I don't waste my life away "researching".

    0Reply
  • Account Closed
    Flipper · Tualatin, OR · Member since 2017 · 28 posts · 16 votes
    9y

    @Senise America Tavares good job on running numbers and wanting to push your family to a better position in life.  I think the best option for you to continue building confidence is to post the numbers you are seeing on the forums to get feedback.

    1Reply
  • Shenise America Tavares
    Columbus, OH · Member since 2017 · 5 posts · 1 vote
    9y
    @A.J. Weinzettel That's an excellent idea and something I should've thought about days ago! I'm definitely going to try that out, possibly as soon as tonight. Thank you for the advice!
    0Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    9y
    Originally posted by @Thomas S.:

    Iinvesting in real estate is only about numbers. Assuming you have the capacity to educate yourself in that regard having a deal work should be of minimal concern.

    As a new landlord your biggest concern should be in regards to the processes of managing of people. Can you make business decisions without emotion or compassion.

    Not being able to make decisions without emotions should be every new landlords biggest fear. If you can not put mother and child on the street for non payment of rent without emotion you are going to be in big trouble in this business. There is no room for investors to have emotions where money is concerned.

    You are correct, that managing people should be someone's biggest fear, they may just not know it. People think they are tough until they are faced with a real situation, then most people cave quickly. Your example is pretty extreme, but even seemingly innocent things like waiving late fees or relaxing applicant standards can have serious effects on your business. The problem is people want to be liked and saying no is hard for most people. Saying no is like developing a muscle, the more you say it, the easier it gets. Or learn the hard way and say yes, then deal with the disaster you created. 

    1Reply
  • Jake Hart
    Accountant · Muncie, IN · Member since 2017 · 27 posts · 18 votes
    9y

    I'm new to the investing world. Just recently purchased my first rental, but its netting around $500/month in cash-flow. The fear of losing was something I really had to overcome. Having to put $18k down of my own money wasn't something that I had ever done before in my life so putting that much on the line was very uneasy. Even now I still get the fear bug come upon me thinking of my next deal or all the "what ifs". I'm sure those will always be there but the one thing I do to help overcome this is always go back to the numbers and basics. Just take it one step at a time and always ask for help or advise if you don't understand or need a second set of eyes on the deal. 

    1Reply
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