Having just recently bought my first property, I know for myself what was holding me back was the fear that I would overpay, especially in this type of a market. I would get analysis paralysis and basically talk myself out of every property I looked at.
This is a great thread. A lot of people need to ask themselves this question. Many times, they will find that fear is what truly holds them back - which I am sure you have discovered.
Definitely some great advice on this thread. For me it's that I don't know how to find solid deals. My area is too expensive so I'm looking out of state, and I just recently purchased my first rental property. Even out of state, though, I can't seem to find many investments that make sense. It's a competitive market and I don't have a big marketing budget, so it's tough to find deals remotely.
Honestly, (sorry if im bringing this back from the dead) but money and knowledge..
I would love to take the leap as im newly married and a new father and i want to give my very supportive wife a better life and i want to make sure my 8 month old daughter doesn't grow up like i did. I have what i call the "what if" syndrom.. back when i was 18 (41 now) auto sound and security was a big thing, there was a school that certified you and i saw it as an opportunity to jump into a very lucrative industry, so i went to my father and told him bout the school, he said great and that he would pay for my education and then came the "what ifs"...... and ever since then, i think about it.. what if i fail, and now its worse because if i fail, i fail my wife and daughter, it's not just me anymore... so yeah.. basically im a chicken sh**. Lol
Lol. You were brought up in a family where failure is always a bad thing. In reality if you don't fail once in a while then you are not taking enough risks. When you were 11 months old you probably tried to start walking. When you fell did you stop trying to walk for the rest of your life. When you were 6 years old and fell off that bike did you swear to never try riding again. When you were 17 years old and some cute girl turned you down did you decide to become a monk instead because you worried about failing again. No.
Hey listen your wife doesn't expect a perfect husband. You are going to fail once in a while. If I worried about what ifs I would still be living with my Mom and being comfortable. Eww.
To get started in real estate you need at least one major thing. Either time OR money OR knowledge. If you are lacking in all 3 you need to work at one until you build it up.
What's holding me back from getting started is financing deals. I have good credit, cash reserves, but I'm unemployed right now, so traditional financing is not in the cards for me. Thank you for asking.
Sincerely,
Start building relationships with Hard Money Lenders. Network, Network, Network and keep educating yourself.
Don't tell me that you are unemployed. That is the wrong mindset. You are a real estate investor/wholesaler building a pipeline. You are an entrepreneur between opportunities.
I had a friend who had no job for years but he was great with real estate and wholesaled me a few deals once in a while.
You didn't give me alot of info so far. What are you doing right now to find the "right one"? How many houses did you look at this week? How many agents did you call? How many networking opportunities did you go to?
Also don't just wait for the one perfect deal. Just find a decent one to get started. My wife and I spent so much time looking for the perfect home. We should've just found a good one and moved up later.
This is a great thread. A lot of people need to ask themselves this question. Many times, they will find that fear is what truly holds them back - which I am sure you have discovered.
Yeah. It's a common thread. Fear/Risk. Many people just don't want to take enough chances. Real life is not school. I'm not saying to skydive without a parachute but most people need to take a few more chances to have life changing success.
Definitely some great advice on this thread. For me it's that I don't know how to find solid deals. My area is too expensive so I'm looking out of state, and I just recently purchased my first rental property. Even out of state, though, I can't seem to find many investments that make sense. It's a competitive market and I don't have a big marketing budget, so it's tough to find deals remotely.
Stop beating yourself up. You have already bought one property. Congratulations. You are doing better than half the people on here.
You are probably having a hard time finding deals because the best ones are bought through a network and networks are harder to build online than in person. The best deals are the ones that you make yourself, not the one that you see on websites. Even if you are networking well, the market is hot right now. But keep pushing. I'm proud of you.
@Frank Patalano. I oh i have failed plenty. But small failures.. nothing as risky as real estate.
I have some time and some knowledge, but no money.. which is the other reason im not dipping my toes.. ive always believed that education is key to everything, so im trying to educated myself on as much as possible.
@Frank Patalano. I oh i have failed plenty. But small failures.. nothing as risky as real estate.
I have some time and some knowledge, but no money.. which is the other reason im not dipping my toes.. ive always believed that education is key to everything, so im trying to educated myself on as much as possible.
There you go. Set daily and weekly goals for education.
Go to local real estate meetings if you can. Not national seminars. Local REIAs.
Knowledge reduces risk. But does not eliminate it.
Education is super important. This won't help with control but if you don't want to manage but still want to invest, perhaps you should think about crowdfunding, buying a REIT, or passively investing in a syndication. Then you can at least have some of your money working for you.
Is the return on these other options crappy compared to actually having to do some work in terms of managing?
That's the holding pattern I've been in for a while too. It's time to break the chain this year.
Man, just do it. Last July is when we decided we wanted to start real estate investing. Today we have our first two properties under our belts. I read too much on BP about analysis paralysis, so last August I decided I didn't want to get into that pattern. I set a goal to have our first property by the end of 2018. I'd say just set a goal that is more specific than "this year". If it were me starting now, I'd set my own goal for August 31st.
Set a date in the not too distant future, pick an area, find an agent and go for it. I know I just oversimplified the process, but once you've made the decision to buy a property by a certain date, you'll find yourself getting the rest of the information you'll need to land your first deal.
Good luck!
That's great advice! I've set a date to have my first deal done by the end of May. This deadline pushes me it to do something everyday to move me closer to my goal. Plus, I have a "why" that trumps any inhibitions I once had. Making mistakes is something that has kept me from moving forward, but now I'm at the point where I all of the information I'm learning is useless without real world experience to attach to it.
That's the holding pattern I've been in for a while too. It's time to break the chain this year.
Man, just do it. Last July is when we decided we wanted to start real estate investing. Today we have our first two properties under our belts. I read too much on BP about analysis paralysis, so last August I decided I didn't want to get into that pattern. I set a goal to have our first property by the end of 2018. I'd say just set a goal that is more specific than "this year". If it were me starting now, I'd set my own goal for August 31st.
Set a date in the not too distant future, pick an area, find an agent and go for it. I know I just oversimplified the process, but once you've made the decision to buy a property by a certain date, you'll find yourself getting the rest of the information you'll need to land your first deal.
Good luck!
That's great advice! I've set a date to have my first deal done by the end of May. This deadline pushes me it to do something everyday to move me closer to my goal. Plus, I have a "why" that trumps any inhibitions I once had. Making mistakes is something that has kept me from moving forward, but now I'm at the point where I all of the information I'm learning is useless without real world experience to attach to it.
Thanks again!
I've learned myself that daily goals and habits will help lead to your success. Do something with real estate everyday. Network. Educate. Visit properties. All of those things can be done pretty cheaply.
@Frank Patalano Analysis paralysis! As well as, becoming unemployed recently. I really desire to jump right in full time but I’m afraid to fail and put myself and my son in a rough financial situation.
Education is super important. This won't help with control but if you don't want to manage but still want to invest, perhaps you should think about crowdfunding, buying a REIT, or passively investing in a syndication. Then you can at least have some of your money working for you.
Is the return on these other options crappy compared to actually having to do some work in terms of managing?
The sanitized investments that you are referring to are options especially if you don't want to manage things yourself. The risks will be lower and the return will probably be lower as well. Since they are more passive, investing in those ways are better for those with money.
If you don't want to manage the property, you could pay a management company but that does bite into your returns.
When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.
So I'll ask here. What is holding you back?
What held me back for years was ego. I don't mean bravado or machismo.
When I say ego I mean is identifying with concepts, behaviors and ideologies that don't serve you and your goals. For example I used to work 15+ hours per day every day of the week. I confused that with success. Why did I do it? Why does anyone do that? none other than ego.
When I started examining myself and asking better questions I started to have success in life.
Many people fall in love with their ideas, they become them and defend them at all costs, when there are better ways of doing things out there. The antidote is to humble yourself and change.
@Frank Patalano Analysis paralysis! As well as, becoming unemployed recently. I really desire to jump right in full time but I’m afraid to fail and put myself and my son in a rough financial situation.
A lot of things going on here.
1. Change your mindset. Full time investors are not unemployed.
2. Knowledge will help with Analysis.
3. Get a partner. Work together on deals.
4. I understand your worry. Over the internet I can't ascertain your drive, hustle, skills. You may have no money and no experience but you have the time. Help others and use it to you advantage.
When I help new investors with buying their first property I often want to know what is holding them back from pulling the trigger.
So I'll ask here. What is holding you back?
What held me back for years was ego. I don't mean bravado or machismo.
When I say ego I mean is identifying with concepts, behaviors and ideologies that don't serve you and your goals. For example I used to work 15+ hours per day every day of the week. I confused that with success. Why did I do it? Why does anyone do that? none other than ego.
When I started examining myself and asking better questions I started to have success in life.
Many people fall in love with their ideas, they become them and defend them at all costs, when there are better ways of doing things out there. The antidote is to humble yourself and change.
Good luck!
Sounds like you figured it out before it was too late. Nice job. Some people never will.
Hey Frank. I’ve never been interactive on the forums, but when I seen your question, I thought it was time I try and get more involved. I’ve been listening to the BP podcast for a while trying to learn all I can, but I’m still no further in actually pursuing real estate investing. There are two major factors I think at this point holding me back. Number one is fear. There is fear because of the uncertainty and possibility of failing. Number two is my lack of funds. I know these are two of the biggest excuses, but here I am, stuck on these. The fear I can get past, but the lack of funding is really getting in my way. I’m basically paycheck to paycheck with no capital of my own. Any advice would be greatly appreciated.
Honestly it’s the returns. I find real estate to be safe and practical to an extend it’s almost boring. But I calmed my risky behavior and decided to go with my rational side
When I say calmed I didn’t mean stop. I find the stock market 10x more exhilarating and that will never change...
Right now, I would say not knowing as much *ins & outs* about multi family. I get the general info on the benefits of "Housing hacking" as mentioned on your podcast. My main thing will be, how do I go about obtaining a good cash flow property with little to no money to start off.
Hey Frank. I’ve never been interactive on the forums, but when I seen your question, I thought it was time I try and get more involved. I’ve been listening to the BP podcast for a while trying to learn all I can, but I’m still no further in actually pursuing real estate investing. There are two major factors I think at this point holding me back. Number one is fear. There is fear because of the uncertainty and possibility of failing. Number two is my lack of funds. I know these are two of the biggest excuses, but here I am, stuck on these. The fear I can get past, but the lack of funding is really getting in my way. I’m basically paycheck to paycheck with no capital of my own. Any advice would be greatly appreciated.
So. To be honest, I don't know if I have listened to more than a few podcasts. They are a great resource but I rarely get around to it.
Fear is normal. People forget that no one is perfect. You are going to fail. Failure will make you stronger. Small failures will lead to learning and improvement. Taking action is one of the most important things that you can do.
Living paycheck to paycheck is definitely an excuse and a mindset issue. I had a friend without a job who was wholesaling for years instead. Money is not a requirement for success if you have time or experience. If you don't have time, money, or experience then you have to build one or you are not truly trying to become an investor.