I now get why everyone doesn’t invest in RE!

Investor · Member since 2019 · 59 posts · 73 votes

Because it’s hard and taking the first step in the hardest! We have money ready to go and I always wonder why people who seem to do better than us, don’t invest in RE. But the emotional roller coaster has almost done me in! I know I’m not supposed to let feelings come into play, and it’s just numbers, but I’m especially sensitive to it today. We have put in two offers that have been rejected. And we had one accepted today, but decided to pass. Tell me how you overcame the first JUMP, and let me know that it gets easier ;)!

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Ryan MurdockPro Member

Rental Property Investor · Austin, TX · Member since 2016 · 1k+ posts · 1k+ votes

Just keep doing it. It gets emotionally easier each time. Still a total pain, but easier to cope with :-)

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Mark Hughes
Rental Property Investor · Aurora, CO · Member since 2018 · 288 posts · 117 votes
7y
@Anita Anand hang in there it definitely takes tenacity.
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Brian Ellis
Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
7y
In life, people regret the actions they didn't take, as opposed to the ones they did.
You can fail, and still end up exactly where you are now.. That's almost guaranteed. If you don't take any action to what you envision for yourself, you will never have a chance to prove yourself (to yourself).
Life is too short!!!! Enjoy it and create the life you want.
Goodluck!
2 Reply
Jonathan Lyford
Member since 2019 · 56 posts · 53 votes
7y
Anita Anand replied about 19 hours ago Originally posted by @Michael Craig : Every successful real estate investor has made sacrifices to get to where they are. You have to be willing to get out of your comfort zone if you want to grow. Yes, the comfort zone is the hardest part for me. I can't stop thinking of all the things that can go wrong (our goal is to purchase a property that needs some fixing up to Airbnb and then BRRR). What if the market tanks, what if Airbnb is saturated, what if our other rental loses a tenant, what if, what if, what if...those humps are the hardest for me to get over. I'm just starting out to! What helped my wife and I with this was to really run the numbers on the worst case scenarios. Thankfully we are in a position where we a) have a good emergency fund and b) could cover both the mortgage on our current home and the rental is we really needed to. so, even in the scenario where the place sat unrented we wouldn't go bankrupt. For us, planning for the worst case scenarios made it easier to take the jump and get started. good luck!
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David Dachtera
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
7y
Originally posted by @Account Closed:
Because it’s hard and taking the first step in the hardest! We have money ready to go and I always wonder why people who seem to do better than us, don’t invest in RE. But the emotional roller coaster has almost done me in! I know I’m not supposed to let feelings come into play, and it’s just numbers, but I’m especially sensitive to it today. We have put in two offers that have been rejected. And we had one accepted today, but decided to pass. Tell me how you overcame the first JUMP, and let me know that it gets easier ;)!

That's why some of the REI education organizations also focus on personal development.
Education about the rules and the numbers is only half of the plan. We need to also learn how to get out of our own way.
"... it gets easier" ? Don't make it harder than it is. You submit an offer. It's accepted or it isn't. If it isn't, you decide whether or not to make a different offer.
One of the biggest challenges is "falling in love" with a property. It may seem lucrative, you may even think you'd like to live there. That makes you a home shopper, not an investor.
About 30 years ago, Robert Allen and his partner Don Wolfe came pretty close to getting the front-end part of it right: In their "Wealth Training", yes - they talked about property, acquisition strategies, exit strategies and so on, but they also spent a good chunk of their 5-day seminar on personal development: how you present yourself as an investor, negotiator, money partner, etc. ... how to focus on the deal rather than how you feel about it, ...
Focus on the deal. Do the numbers work and do they make sense? Sure, you might find a deal which looks promising, and if your offer is not accepted the first time, you'll feel a tinge of disappointment.
Re-focus: get back to the numbers and see if you can "sweeten the deal" for the seller. Find out what the seller needs - they'll TELL you how to structure your offer and how to present it if you LISTEN(!!!) with an open mind. Ask an open-ended question, then shut up. Lather, rinse, repeat paying attention to the seller and how they answer.
My $0.02 ...
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Pat Monahan
Wholesaler · Orange, CT · Member since 2015 · 3 posts · 0 votes
7y
@Anita Anand
confidence comes from knowing the number you can’t lose with.
If you buy it right...you can make mistakes, overspend, and you’ll do no worse than make a small profit.
You are offering a solution that should get them down the road in life....
Be brutally tough in your offers and back them up with the “facts of life”...they will or they won’t get it...but you can be a good person and completely honest...and sleep at night.
MAKE MORE OFFERS!!
MAKE MORE OFFERS!!
MAKE MORE OFFERS!!
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
7y
@Anita Anand you just need to take the leap. Things will go wrong, you’ll learn what not to do the next time. One property won’t make you rich and it won’t ruin you either.
You can only learn and research so much until you have to take action. Why did you pass on the accepted offer?
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Dennis Cosgrave
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
7y
"@Travis Watts that’s where I am. Analysis paralysis. I spent the entire night last night crunching numbers and even got an extension on the decision until noon today and I was STILL paralyzed. At that point without a clear plan I just balked and said no. Of course now, I am feeling regret. I keep hearing people say “when you know, you just know it’s a good deal.” Either I can’t find them or I still don’t know and feel awfully frustrated. There are so many variables and my mind always goes to the worst case scenario!"

I am struck by your phrase, "without a clear plan". It is no wonder that you are paralyzed. You first need to develop a clear investment strategy. Then you have to be patient to find a property that fits with the strategy. There is nothing wrong with planning for the worst case scenario. That is a very good thing. You should also plan for the best case scenario. Reality usually comes in somewhere in the middle.

The hardest part is remaining objective. Do not let your emotions get the best of you. This is purely a numbers game. If the numbers don't work, move on. Eventually, you will get there.
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Ola Dantis
Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
7y
"I now get why everyone doesn't invest in RE" because they put out a couple of offers, which are rejected and they say forget this... I'm going back to BitCoin or The Stock Market.
But you, you're smart! You are accommodating your thoughts and sharing with the universe and this thread right here will allow you to see that you are not the only one having such feelings, you are just one of the few brave ones to admit it in a public domain such as this. For that, I applaud and thank you 🙏🙏🙏
Listen, once you make that commitment to REI for life and you know there is no going back, you start to see things happening bit by bit, nothing grandiose. Steady WINS the race!
Keep on pushing! 💪💪💪
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Account Closed
OP
Investor · Member since 2019 · 59 posts · 73 votes
7y
@Ola Dantis. Thanks for that. I appreciate it more than you know.
1 Reply
Roger Hefner
Yuma, AZ · Member since 2015 · 140 posts · 137 votes
7y
@Anita Anand I'm drinking beer in Cabo San Lucas Mx. for a week.. Did I miss something? Just keep plugging away it will get easier. Re investing depending what your doing is not a overnight success.. Good luck you cannot succeed if you quit.
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Account Closed
OP
Investor · Member since 2019 · 59 posts · 73 votes
7y
@Jordan Moorhead it was for an Airbnb and I got spooked by carrying it for so long until the busy season. All of the what if’s hit me like a ton of bricks. I should’ve just stayed calm and trusted that we have money that could cover the mortgage for a few months. I need to push past the make money part and KNOW that it actually TAKES money to make money.
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Jordan MoorheadBusiness Member
Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
7y
@Account Closed if the numbers work pull the trigger!
[email protected]512-888-9122
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Amit Saini
San Mateo, CA · Member since 2015 · 61 posts · 30 votes
7y
@Account Closed - one thing that can help you is scenario comparison to account for different cases. Depending on where you're living, you're probably aware of increased tightening of STR/Airbnb. Many places in CA have made life miserable for Airbnb owners. Would the property continue to break-even at minimum if you switched from STR or long-term rental? At the end of the day, as long as you have confidence in your numbers & have made reasonable assumptions, it will work out with a 5+ year time horizon. One of the best things about real estate is the flexibility it offers - STR/LTR, value-add, rezoning, refinancing etc. The creative investor generally finds a way to make money assuming it's acquired at a fair price. All the best!

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Jerry Lucker
Flipper/Rehabber · Seattle, WA · Member since 2015 · 333 posts · 459 votes
7y
@Anita Anand. I agree, experienced the same thing. That’s when I discovered flipping mobile homes was far easier with far less money and far less risk and worry. The exceptional profit margins gave me enough money to buy income producing real estate with cash.
Jerry Lucker
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Christopher Petrillo
Member since 2018 · 264 posts · 61 votes
7y
@Account Closed people are so afraid to lose money that they don't end up trying in the first place. I read Rich Dad, Poor Dad and I tell you that book made me think of money in a totally different perspective.
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
7y
@Account Closed It just comes down to your risk tolerance. As you do more your risk tolerance will go up. Then you will be able to do more and more. Just surround yourself with a solid team and some good mentors. Life is about risks. Sure you could lose it all as many did in 07 and 08. The strong came back and are killing it now.
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Javier Rosales
Rental Property Investor · Los Angeles, CA · Member since 2019 · 160 posts · 58 votes
7y
@Anita Anand I know the feeling, I came close twice. My first attempt a lien pop'ed up 3 days before closing. The second attempt right before signing for my loan the numbers didn't make sense any more, and a hiccup with electrical came up. Also days away from closing. I was upset with my self. I got discouraged. But i continues read and practice my knowledge. I keep contact with those REI. Am a newbie still. Too. Don't give up.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Lee Bell:
As a motorcycle rider, we say dress for the crash, not the ride. You don't expect to crash and usually don't. But if you do it is good to have full gear, not flip flops and T shirt, to protect from the asphalt. I assume you like your skin and want to keep it. Be alert and watch what is going on, try to predict what others will do to help stay safe and alive.
Protect yourself as best you can, but jump on and ride, have fun. Hope this analogy helps. Go make money.
and as a pilot we always say as we prepare to launch.. what is going to kill me today.. when you cant think of anything and do your final scan and checks you just launch.. and once your 500 feet in the air there is no turning back.. and you just make it work.

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Damien Smith
Member since 2019 · 25 posts · 2 votes
7y
@Anita Anand Hello, I’ve read your post. I am new in the game and for me it’s like monopoly. I honestly don’t give much thought to failing, because successful people fail and are thankful for failures because it teaches you mistakes to NEVER make again. When I fit t started I was trying to get multiple properties. I am so glad I decided to take it one at a time. My closing was Monday and I’m happy with the purchase. One other thing I wanted to tell you is that a lot of your what ifs can be addressed with a diversified portfolio. Having MSI will elucidate that tension because those other investments become part of your personal insurance policy.
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Account Closed
Rental Property Investor · Canton, OH · Member since 2017 · 1k+ posts · 1k+ votes
7y
@Anita Anand

Hi Anita, Iike many I struggled with some of the emotional aspects you mentioned. I think part of the solution is recognizing that this is a business and you have to set emotion aside (I know, hard to do when it's your own money, time, etc., but it still holds true).

I've been only in this for about 1.5 years, and for me I've noticed that I develop thicker skin as more and more time goes on. Now, to answer "does it get easier?" Hard to say because it's what you make of it, the systems you have in place, whether you plan for contingencies/have money in reserve, and the team you can lean on for advice and help (most important).

I'll give you a perfect example, just 30 days ago, I had 5 unexpected vacancies including 1 eviction. Additionally during this time I had 2 HVAC unit repairs, an electrical repair, 2 water issues in basements, a property that was flagged by Code Enforcement as uninhabitable due to a tenant's trash, a broken garage door, roach infestation, clogged plumbing, a broken sliding glass door, and numerous other items! Murphy's Law at its finest!

Was it stressful, yes...especially since I work a full time W2 job too. Was that normal, no. But was it harder than when I just started out, not even close because of my mindset and more importantly my team. Now everything is re-rented and 99% of those issues have been handled.
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Andrew SyriosPro Member
Moderator
Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
7y
Real estate is a very lucrative business but it's not like the gurus say. It is a challenging business, especially since there are so many different aspects. And the first step is the hardest, at least emotionally and mentally because real estate requires quite a bit of capital up front. It's worth it though.
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Gabriel GraumannPro Member
Real Estate Broker · Phoenix, AZ · Member since 2019 · 165 posts · 100 votes
7y
@Account Closed I hear your fear and concern and emotions via the post. Real estate can "FEEL" emotional but it doesn't have to. Mindset is everything. The best advice I can give is that investing should carry a long-term perspective, while speculating carries a short-term perspective...and our feelings will follow suit. In my experience and many I've worked with, when a new buyer is looking for quick money, a quick return, they look at each deal as the best and the fear of losing it and getting it really tear them up inside. And it should, because it's impossible to control all the variables in a short term situation. Buy a stock today and it may be up OR down big tomorrow. However, if I buy a mutual fund with a good track record and hold it for 10+ years, history would suggest that I'll make money nearly every time.
While real estate doesn't have daily swings as high or low as the stock market, and your strategy may not be to hold a property for 10+ years, the same reality exists. If you do your research on the front end, pick a strategy to work with, buy a property that meets your criteria and hold on, 90%+ of the time you'll look up several years later and have made a lot of money either by cash flow, appreciation or both.
Not sure what kind of deal you are considering jumping into, so perhaps the fear and emotion you are feeling is tied more to the "type" of investment you are considering vs. other potential types. Perhaps you should be looking at a different class of property to invest in. Just a thought.
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CW JohnsonPro Member
Member since 2019 · 14 posts · 2 votes
7y
I like the analogy of deciding to have children, its a hard decision but so worth it.
1 Reply
Kyle Nelson
Polson, MT · Member since 2017 · 115 posts · 105 votes
7y
Anything that is highly valuable has high barriers of entry. You don’t want it to be easy or it will strip the value! Once you’ve done a deal you’ll realize it was probably more costly to let deals get away that you didn’t deem perfect.
Keep on truckin’!
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August Olgren
Flipper/Rehabber · Colorado Springs, CO · Member since 2018 · 34 posts · 27 votes
7y
@Anita Anand ot took me a year of research, then a year of looking on the mls and analyzing deals. When I jumped, my numbers said I could lose 5k or make 15k. I ended with an 8k profit
The hard part is pulling the trigger, but once I did, I am in the game and found my next property within 3 months. It's going on market next week and I expect to find my 3rd before the end of the year. So, keep analyzing, network, and be patient.
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