What do you think stops people from starting?

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What do you think stops people from starting?

Zoie Holley
Rental Property Investor · Columbus, OH · Member since 2021 · 16 posts · 10 votes

So I’m 20 in college and going into my final two semesters of college and I’m reading my first real estate book and I wanted to do the housing hacking route in West Virginia (that’s where I go to school and what’s the market like there?) . Anyways should I just wait until I’m done with school and take this time to learn as much as I can or just jump in while I’m still so excited about it?

Also what do you think stops people from doing this (specifically) ? The idea of having to take a loan out? The cost of rehab or it being more than you intended? Not being able to find tenants or it being a bad deal and not even being able to break even? Etc

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Michael Carbonare
Investor · Fort Lauderdale, FL · Member since 2013 · 922 posts · 607 votes
5y

What stops people from starting?  This place, along with YouTube videos, various podcasts, Facebook groups, etc.  It's called Paralysis of Analysis.

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  • Darius Kellar
    Real Estate Coach · Member since 2018 · 246 posts · 216 votes
    5y

    TOO MUCH KNOWLEDGE. Fear comes from awareness. 

    0Reply
  • Andrew FreedBusiness Member
    Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    @Zoie Holley great question and you’re super smart for wanting to get into real estate at such a young age.

    I believe multiple people alluded to this, but I’d say fear is what stops people from getting into Real estate and a never quitting sort of mentality is what creates a successful investor.

    I personally have worked a W2 job and have lived a safe life but I am not living the life that I want. I want financial freedom to travel the world and experience what life truly has to offer. Prior to real estate, I was too scared and comfortable to explore outside a 9 to 5. Once I realized fear was ruling my life, I decided to change and take the plunge.

    Once started I’ve experienced numerous failures lost thousands of dollars but never quit. After only 10 months investing, I’ll be up to 7 units and aiming for 20 by the end of 2022.

    Everything in life has risk, don’t let fear rule your future. And when you are in the trenches experiencing failure after failure use that has fuel and inspiration to keep on pushing to better opportunities. As long as you don’t quit, you never lose.

    [email protected]781-964-3200Podcast Guest on Show 69 Doors from ONE Real Estate Deal Using Other People’s Money
    2Reply
  • Linda S.
    Investor · Richmond, VA · Member since 2016 · 1k+ posts · 2k+ votes
    5y

    @Zoie Holley,

    IMO buying in a college town is a great idea, always have a transient population strictly wanting to rent for a few years!   One thing I never worry about-- is can I find someone to rent?  Of course you can, people are people, and having a place to live is the #1 need in life! 

    Before you get all philosophical about why people aren't starting-- go to the bank, ask in person-- can this even happen for me now?      Ask them what you'd be approved for by yourself, or if you got a partner (assuming parent), how much could you be approved for?   If you can-- start looking!  If you can't right now, ask them what they'd need in order to be approved, and then start preparing!

    Dreaming is fun, but doing is a lot more exciting!

    2Reply
  • Deneuve Brutus
    Investor · Woodbridge, VA · Member since 2019 · 162 posts · 64 votes
    5y

    Hi @Zoie Holley , believe it or not you are already doing it! You've joined a community of investors and you are asking for guidance. That is one of the first steps: Have the proper mindset. It is also a very crucial one. For college students, a variety of things stops them from investing. When I was in school there was a dilapidated apartment next door, I thought about buying it everyday. However, I  lacked resources. I didn't know what I didn't know. Most students are goal-oriented. We think first-thing-is-first, graduate! This is valid. Depending on your mental capacity and major, it maybe difficult to pursue investing while getting an education. I was a Computer Engineer with Comp Sci and Math minor, plus I did extracurricular activities. Don't let schooling interfere with your education -- Mark Twain

    House hacking:

    House Hacking is a great method to get started. You learn almost everything for residential rentals. Since you have one year left, you could leverage FHA and other government loan programs that demand owner-occupancy plus a certain live-in time period. Do you have a wealthy friend you. You do have to think about how will you afford the home? Will you leverage low interest student loans for a high return from the rents? Will you work part-time? How will part-time work affect your school? Are there grants/scholarships you can apply for? Are there programs you can enroll in which pay you and allow for work-school-life balance such as on campus-jobs or local internships?

    TLDR; What stops people?

    What stops people is MINDSET. Have you SET your MIND to do what your going to do, no matter the obstacles? A strong will, WILL find a way. A great quote I heard from one of the podcasts is "vacuum the truck". You want to sell your truck don't know how? Do the first thing you know and figure out the rest as you go. In your case the first thing you did was figure out that you need to educate yourself! That is excellent! Set a deadline to buy your first property, work with an agent, or others in your sphere who are like minded and you will avoid analysis paralysis.

    You have a community like BiggerPockets who will answer your questions. 


    Good luck!

    1Reply
  • Robert Carnie
    Real Estate Agent · San Antonio, TX · Member since 2021 · 12 posts · 13 votes
    5y

    I recently got the REI fever as well! @Zoie Holley I only wish I knew the information I know now 10 years ago. My entire mindset has changed from working for money to have money work for you. Degrees open doors, but with real estate inventing why not buy the door? 

    I would discourage you from "jumping in" without educating yourself, knowing the market conditions, or understanding the numbers, etc. 

    I would absolutely encourage you to use your excitement to read all the books and information you can, practice analyzing properties/ deals, fill in the knowledge gaps, and then jump in. Don't wait forever, there is never a perfect time, and the sooner you start, the sooner you come closer to reaching your financial goals. 

    Growing up, I was taught to go to school, get good grades, and then get a career. I believe those beliefs are the shackles that have kept me from understanding that there is a better way to live.  

    When I talk to my friends about REI and financial freedom their immediate response is fear and caution. That is because of the beliefs mentioned above, that you must find a career and have "job security". Once you get your salary/ paycheck don't let go! I will happily let go of my salary/ paycheck once I have enough assets/ passive income to comfortably cover my liabilities.

    Some of the first things my friends ask are: what happens when you have to evict the tenant? What happens if the market crashes? These are the questions that can be answered once the knowledge is attained. 

    Good luck with your pursuit of financial freedom,

    1Reply
  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    5y
    Originally posted by @Zoie Holley:

    what do you think stops people from doing this (specifically) ? The idea of having to take a loan out? The cost of rehab or it being more than you intended? Not being able to find tenants or it being a bad deal and not even being able to break even? Etc

    There are upper, rational fears and lower, 'survival' fears.  The fears you mention are lower, reflexive fears that can be mitigated and overcome with education and experience.

    If we focused on all the what-if lower fears possible, we would never drive. We mitigate those with learning and practice. 

    Start with why.  Why are you so excited about it? Without a deep 7 question why, real estate is just a bunch of work beyond househacking.

    What stops newbs usually is a lame why, lack of capital, lack of education.  Take this time in college to educate yourself and iD your why. FOMO isn't it.  

    2Reply
  • Eric Gerakos
    Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Fear of failure and fear of looking foolish stops many people from ever achieving anything. Just do it.......

    0Reply
  • Eric Bilderback
    Real Estate Agent · Sisters, OR · Member since 2014 · 1k+ posts · 1k+ votes
    5y

    I don't think most people are ever exposed to investing.  If they were I believe many more people would invest.  I also think if more people new people who invested they would as well.  For guys like me that eat sleep and breath this stuff I think it is hard for people to imagine how foreign of a concept it is to own assets.  For whatever reason I have always been naturally interested in this stuff.  I wish I could have a 4.4 40 yard dash and 35" vertical but this what I got!

    1Reply
  • Jared HottleBusiness Member
    Real Estate Agent · Cedar falls IA Waterloo, IA · Member since 2020 · 902 posts · 549 votes
    5y

    If I could do it all over again I would start with a house hack in college or just out of college. I think start when you are excited about it but I tend to error on the side of action. Find out what rents are in your area, Run your numbers with the BP calculator and if something works go for it. Things will come up, you will need to problem solve but you will get through it and everything will be fine. 

    [email protected]319-288-5382
    Jared Hottle Real Estate59 Reviews
    WebsiteView Page
    1Reply
  • Jason N.
    Specialist · Denver · Member since 2021 · 159 posts · 101 votes
    5y

    @Zoie Holley I think you're in a good position. If you can get started now being in college, you'll set yourself up to be in a much greater place because of this experience. Go for it!

    1Reply
  • Chris Levarek
    Real Estate Syndicator · Phoenix, AZ · Member since 2018 · 903 posts · 1k+ votes
    5y

    The earlier the better. I'd say jump in if you can and learn through action. What stops people? Depends on the person but typically at the root, it's fear. Fear of the unknown, fear of getting it wrong, fear of losing money, etc. 

    Many will just analyze and tweak numbers hoping to cover every possible mishap or mistake. Life is all about mistakes though and the best lessons come from mistakes, so really nothing to fear. 

    “Everything you’ve ever wanted is sitting on the other side of fear.” - George Addair

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