I’ve educated myself. I’ve watched countless hours of YouTube videos and listened to the same amount of podcasts. I just finished a webinar course and I’m ready to take the dive. I’m so used to the rat race that I have an underlying fear of creating so much debt that I won’t be able to recover. what if I can’t resell? What happens when I can’t find tenants? Everyone makes it sound so easy and so lucrative but I can’t help with the “what-if’s”. Anyone else have these same thoughts in their beginning ?
Investor · Dallas, TX · Member since 2017 · 18 posts · 8 votes
4y
Charge ahead! If fear exists than bravery exists, exercise your bravery muscles and you will either learn a ton or make money or both. But Philosophy aside, look for a partner that has done this before. 50% of something is better than 100% of nothing.
Real Estate Agent · Los Angeles, CA · Member since 2018 · 2k+ posts · 1k+ votes
4y
Have you considered house hacking? It lowers your risk considerably. What if the market values drop? Who cares, don't sell. It's just a paper loss. Plus you have to have a roof over your head anyways and with roommates if they don't pay the consequences are the same.
That's the thing not everyone realizes. What happens if you don't pay rent? You get kicked out. What happens if you don't pay the mortgage? You get kicked out. The only difference is in the mortgage scenario you are building equity (by both appreciation or by paying off the mortgage).
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y
I had to get over this myself, and in some ways I still do one thing that puts me in this frame of mind..."I create problems before they're problems". If you're concious of that, you can start building the "muscle-memory" that tells your brain..."hey, i'm worried about this, but I have a plan when and if it happens and i'm a smart person who will figure it out."
This is hard to do, and those things keep you up at night sometimes. It helps me to have a network of people that are ready to support and you'll find that in most REI groups, meetups, masterminds, local investors, etc... Surround yourself with people who are doing it and they will lift you up because they want to see you succeed too.
You got this! Train your mind to view opportunity and the reward ahead as something way more fun and worthwhile than sitting bored and anxious.
Surveyor · Dothan, AL · Member since 2014 · 425 posts · 391 votes
4y
@Nathan Leger
You've already studied more than a majority of successful investors already making money. BP as you know is a tremendous resource. why don't you pick a deal show us how you're going to finance it show us the numbers market value, market rent and let us tell you what we think. if It looks good then you'll know you're ready. I think it was PT Barnum that said something terrible could happen and that's absolutely nothing. That's your situation.
You must have a solid "why." This is what will get you through the tough times and the times when you doubt yourself. Like most things in life, real estate investing is mostly mindset. As others have mentioned, listening to podcasts on mindset - BP Real Estate Podcast typically covers this topic in some form on Sunday editions - and reading book on mindset can really help. I can't remember who said it, but whether you think you can or you think you can't, either way, you're probably right.
Real Estate Agent · Pasadena, CA · Member since 2015 · 476 posts · 263 votes
4y
A lot of people have a fear of dancing in public. Let's take salsa dancing.
What would you do first if you wanted to learn to dance but were super, extremely scared of it?
Seriously?
Probably: 1. Go to the salsa clubs and classes and sit around watching people dance for about 6 months.
then 2. After that : maybe you meet a couple of people (network) that will push you to dance a little bit (maybe one song every time you go... )
Then : you actually pay for the group classes and take lessons (you dance in there but you still do not dance at the dances, or clubs). for another 1 to 2 years.
Then : you get better and the people in the classes invite you to social dances : where you are next to other people that took the class with you.
Then you may or may not take private lessons or you may start dancing more often
2 to 3 years from now - New dancers will ask you for lessons or tips :)
or
you could start on day 1 with group classes and once you catch the fundamentals, you get 1 on 1 training and you will be salsa dancing at the clubs in less than 2 months (Guaranteed!)
Apply this to Real Estate investing
Find some people that are doing what you want to do: check their reviews, check their credit scores if you can lol , and dip your toe in the water.
I have meet-ups coming up in LA if you are out here. Just saying :) good luck
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
4y
It's already been said, but you just have to go do it! Find a house, any house, and do a deal. Be somewhat smart (you say you've been studying) and you will learn.
This assumes you have some money or know someone who does....?
It's already been said, but you just have to go do it! Find a house, any house, and do a deal. Be somewhat smart (you say you've been studying) and you will learn.
This assumes you have some money or know someone who does....?
Totally agree with this but if this seems too daunting just starting calling real estate agents until your find one or a team that’s geared towards investors.
Rental Property Investor · Houston, TX · Member since 2021 · 35 posts · 35 votes
4y
@Nathan Leger
Newbie here as well. My experience in overcoming fear…I find myself needing to be careful not to overthink things. Also I’m finding that I can listen to people that are experienced or the professionals but I do have to tweak things to fit my particular circumstance. For example, I might not scale using the inexpensive system that others are recommending but that’s ok…for now.
Another thing that helped me overcome fear: I focused on the asset I was getting, not the liability or risk. For example, I’m not wasting money it’s transformed into a house that’s “bringing” me money. It could have been the stock market but it happens to be this building I can hug lol
I also let myself look at the worse case scenario. Will I be under a bridge if this fails? No. So facing the fear.
Then finally just doing it and embracing I’ll make mistakes (I translated mistakes into lessons). I also told myself as much as I need a mentor I can’t escape the fact that I need to walk a certain portion of this journey alone to one day move from a student to a teacher.
Hope it helps. Get the first property. Keep it simple. That’s you opening the door to peek into a space that is not the giant you envision.
Rental Property Investor · Sacramento, CA · Member since 2017 · 202 posts · 82 votes
4y
@Nathan Leger For me I was more afraid of not trying than the consequences of what could go wrong. Worst case scenario you have to continue to work a 9-5. Once I found my real estate agent and lender they pushed me to complete the purchase that was financially beneficial for me. My agent and lender are also real estate investors, it helped that I could consult them before and after my first purchase.
Rental Property Investor · Sacramento, CA · Member since 2017 · 202 posts · 82 votes
4y
@Nathan Leger Also having a strong why helped too and setting realistic, achievable goals I could work towards everyday. Finding a good agent and lender will really help! It’d be best if they owned real estate too.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
4y
“The world breaks everyone and afterward many are strong at the broken places. But those that will not break it kills. It kills the very good and the very gentle and the very brave impartially. If you are none of these you can be sure it will kill you too but there will be no special hurry.”
Rental Property Investor · Portland, MI · Member since 2020 · 48 posts · 16 votes
4y
@Nathan Leger our first building was a four unit. We had just enough money for the down payment, borrowed some of it, no cash reserves, ran into broken pipes, tree roots in the sewer line, tore out cement ourselves to get to the pipes, had police called, us called, fights, drugs, sleepless nights all in the first year. We asked ourselves after 8 months, is this for us, should we sell? We chose not to sell. After reading a lot of posts on here we chose to ask those around us with experience in real estate, plumbing and electrical for help. We then stopped chasing renters and became more patient for the right renters because we realized we were not going to get rich over night. It is a long term game. This was 12 years ago and 4 buildings later and enough cash reserves to weather those types of issues. Let go of thinking you need to do it all and surround yourself with people that can help you do it and appreciate them to the ends of the earth. Your fear will turn into confidence with each mistake and you will become stronger and more capable each time. But don’t forget where it started. This is why it is a lifetime goal. Just do it!
Real Estate Agent · Hillsdale, NJ · Member since 2020 · 87 posts · 39 votes
4y
@Nathan Leger take small steps to build stamina. What are you trying to do? House hack? Then try a small two-family that will allow you to pay rent for both and get rent from one unit. If you are trying an Airbnb, start with a one-bedroom STR in the area close to the vacation spots (beach, ski resort, college town) and start generating small cash flow. That's the way to hedge your bets and gradually overcome your fears
Rental Property Investor · Louisville, KY · Member since 2019 · 15 posts · 10 votes
4y
@Nathan Leger love it. If you are looking for a 3Brx2ba I do have something on s 2!d street (in Beechmont). Rent is $1,4000. Let me know if you’re interested
Investor · Butler, PA · Member since 2014 · 130 posts · 114 votes
4y
I have fifteen units and still have that fear in the back of my head. Im not sure everyone will ever get rid of it completely but trust yourself and know that you've done everything to prepare. You'll get better and better at analyzing deals and be able to see a good deal from a bad deal in a matter of seconds. You just have to take that first step. We've all done it in life.
Real Estate Agent · Louisville, KY · Member since 2014 · 257 posts · 172 votes
4y
@Nathan Leger I'd try to find someone you can partner with on your first deal to reduce your risk exposure and hopefully give you some peace of mind. I spent 4 years on BiggerPockets with analysis paralysis and regret ever day I didn't start investing sooner. Eventually I told my wife it was now or never and jumped into my first flip, very nervous, but it worked out and have been investing ever since. Also, I assume you currently have a job, so what's the worst that can happen? loss a little money and have to keep working your job?