How do i overcome fear!?

Starting Out
5yFollow

How do i overcome fear!?

Nathan Leger
Member since 2021 · 4 posts · 19 votes

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 ? 

16Reply
292 views

Most Popular Reply

Greg ScottPro Member
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
5y

Nothing is going to change until the vision of what your life can become is more crystalized in your mind than the fear of what could go wrong.

23Reply
See this reply in the discussion

86 Replies

Jump to latestLatest
  • Lesley Whitley
    Southern California · Member since 2019 · 44 posts · 33 votes
    5y

    @Nathan Leger  This is such a great post, and how brave of you to put your fears out there.  I was in the same boat with my first property.  I spent more Saturdays than I could count driving around with a note pad and camera trying to find the one that "didnt scare me".  Finally I got sick of hearing my own excuses.  I decided I would save 3 months of investment property expenses so that if the bottom fell out and every tenant didn't pay or they all moved out at same time ... I would still be able to pay ALL my bills.  Once that was done, I bought a 4 plex in a D class neighborhood.  The first 18 months was pure hell ..... I had to evict tenants, I dealt with drug dealers and their discarded needles, etc, and a tenant that was selling firearms, I dealt with homeless people, human waste in our carport, trash and furniture continually dumped all over the property, gang members and graffiti, and even a gang related murder next to our dumpster.  All the things I was  initially so afraid of never happened, but a lot of other bad things came along but none of it was stuff I could not handle.  I received a 6 figure education right there in that bad neighborhood.   Now 4 years later we have 4 great tenants, I cash flow almost $2,000 per month, and we just got it appraised and our fourplex has appreciated over $200,000 in 4 years!   I have since purchased more properties without any issues ... they have been sweet deals with sweet tenants.  I am thankful for all that my initial fourplex put me through because it got me over my fears.  So my suggestion is to save enough money as a cushion "just in case" and then make lists of all the things that might happen both negatively and positively.  But eventually you just have to tell yourself to do it.  Most things in life are never as bad as our fears paint them to be.   I am not a big wig investor, but  I have been where you are now and if you ever need someone to talk to, please reach out to me.  Good luck!!!

    1Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Nathan Leger:

    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 ? 

     Every property can be re-sold if the price is right, so I wouldn't worry about that. Now can you resell it for the price you want? That could be a valid concern.

    0Reply
  • Scott Kaczmarek
    Investor · Dallas, GA · Member since 2016 · 59 posts · 57 votes
    5y

    @Nathan Leger - The fear is normal, but with education it lessens. The big thing is you have to act on that knowledge. The first deal will likely not be a home run, but that’s okay. The first deal helps you leverage your knowledge but it also shows you areas to improve on the next deal. I found I was able to buy my first property after I did the math. The math showed me the property fit my financial criteria for a rental, based on my education, so I bought it. I also had reserves already set aside which also increased my confidence. As the saying goes, do the math and the math will tell you what to do.

    0Reply
  • Jason Lirette
    Developer · Member since 2019 · 7 posts · 3 votes
    5y

    @Nathan Leger

    Fear is a natural response designed to alert our body it is supposed to last a maximum of 90 seconds. If lasting longer, it is fueled by emotions. Now I always say if you fear something, it is either for good reason, or it is outside of your comfort zone. To do something you have never done you must do things you normally never do. So challenge yourself to reach out your comfort zone daily weekly weather it is talking to passer by’s or submitting offer on properties. Track your progress and realize you may not be as afraid as you think.

    0Reply
  • Julian Sanchez
    Rental Property Investor · Orlando · Member since 2016 · 113 posts · 45 votes
    5y

    @Nathan Leger

    Find a partner to

    0Reply
  • Julian Sanchez
    Rental Property Investor · Orlando · Member since 2016 · 113 posts · 45 votes
    5y

    @Nathan Leger

    Find a partner to work with.

    I don't see where you live but if you were to find a smoking good deal in this crazy market we'd partner with you on that deal.

    And I'm sure anyone here would say the same

    0Reply
  • John Barrett
    Rental Property Investor · Everett, WA · Member since 2015 · 457 posts · 386 votes
    5y

    @Nathan Leger Action is the cure. Do some small action that moves you closer to your goal and it will get easier to take the next steps. One step at a time and you’ll be on your way to your ultimate goal.

    Best of luck,

    John

    0Reply
  • Petur Karlsson
    Rental Property Investor · Bucks county, PA · Member since 2019 · 58 posts · 24 votes
    5y

    @Nathan Leger

    Honestly, JUST DO IT.

    You’ve already done all the leg work of educating yourself so you are already dotting lots of i’s and crossing t’s. You know the risks involved and can take steps to mitigate them. Make sure your numbers on The deal are solid and that you intimately know the market you’re operating in. Build connections with anybody you can beforehand so you’re not scrambling for subcontractors in the middle of the projects. Make sure you have reserves and try to get private lending so you keep reserves on the side and don’t exhaust your liquid funds.

    I bought my first BRRRR deal in Feb 2020, days before the covid lockdown, had an extremely difficult time finding subcontractors at anything but ridiculous prices, materials kept climbing in price, the rehab ended up taking months longer and costing $30k over budget.

    Let me tell you I was chewing off my nails the whole darn time, wondering if we’d be plunged into a recession and if I’d lose everything…

    Somehow, I still came out on top with the refinance topping my all-in costs by $35 - $40k and now have had rockstar tenants in there for almost 10 months. Now I’ve also got a triplex and a duplex (working on one of the two units, almost ready to market).

    The biggest risk you can take is doing nothing and waking up ten years stuck in the same place, regretting the wasted opportunities. Let that put the fire to your feet and motivate you. You’re destined for more than the 9-5 !

    0Reply
  • David Jay
    Investor · Reno, NV · Member since 2015 · 69 posts · 48 votes
    5y

    I don't believe "just do it" and conquer your fear is the mantra you should follow.  Rather the key to conquering any fear is to understand the risks involved.  How much capital do you have to work with?  Is your current job stable and providing a decent income.  Can you truly analyze a deal before you invest?  Do you have reserves, both personal and for the property?  I have found that residential properties do not sit vacant for long if they are decent and priced fairly.  That is part of the analysis.  If you don't have a stable income and reserves, then maybe your fear is rational after all.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    5y
    Originally posted by @David Jay:

    If you don't have a stable income and reserves, then maybe your fear is rational after all.

    Many people, myself included, have entered into the REI game with neither. If you sit and wait until everything is perfect, you may never get a deal. My favorite technique was to paint myself in a corner and figure a way out. :-)

    But everyone has their own tolerance to this sort of risk...you gotta do you. But the worst thing to do is nothing.

    0Reply
  • Carlos Gonzalez
    Investor · Phoenix, AZ · Member since 2015 · 346 posts · 170 votes
    5y

    @Nathan Leger

    This is what I think:

    Company jobs (people call it careers to be more fancy) are everywhere especially right now.

    Some people have dreams to start up a company, to invent and sell products or services. Let me tell you, that dream or vision is worth pursuing with passion to achieve what you ultimately want. The money is secondary, it will come as long as you keep doing what you’re doing in a successful manner.

    In summary, company jobs should be your last resort to make a living and your priority should be to pursue and build your vision and achieve it.

    It’s not about fear. It’s about having your priorities straight

    0Reply
  • Chad McMahan
    Residential Real Estate Broker · Sedona, AZ · Member since 2017 · 751 posts · 504 votes
    5y

    Nathan, the key to success is surrounding yourself with superheroes that make up for your weaknesses. Hitch up with an awesome seasoned investor/buy realtor. Ask them to recommend a mortgage broker superhero. Start the conversation and move forward. If you cannot move forward, it has nothing to do with if investing is right- it has to do with your state of mind, which none of us can do for you- that's between you and your therapist or God, or whatever you believe.

    I truly wish you the best. If I can help, just holler.

    1Reply
  • Peter Amendola
    Member since 2019 · 50 posts · 13 votes
    5y

    @Soniel Estime Great advice Soniel. Where’s the fun in learning all this stuff, taking classes, listening to podcasts, and reading the BP forum every day but NOT pulling the trigger on a first investment property.

    0Reply
  • John Pelaez
    Kalamazoo, MI · Member since 2016 · 45 posts · 13 votes
    4y

    @Greg Scott this sounds like a quote from Les Brown.

    0Reply
  • Ilan M Aliphas
    Rental Property Investor · Milpitas, CA · Member since 2020 · 55 posts · 42 votes
    4y

    @Nathan Leger

    To me it was all about visualizing myself at age 65… try doing that, if you think you’ll be content sticking with the rat race and being comfortable then just do that. To me, an ordinary life seemed like it was going to be even more disappointing to myself than a horrible crash and burn as an investor… with that thought, I invested in my first property 18 months ago. Best decision of my life!

    Good luck 👍

    0Reply
  • Jeremy Komer
    Rental Property Investor · Cincinnati, OH · Member since 2020 · 84 posts · 81 votes
    4y

    @Nathan Leger

    This is allot of work, as someone that started last year and I'm now upto 3 properties and 9 units this is ALLOT of work. I buy underperforming rentals and do the upgrades to maximize the rents or if there's allot of work I'll hire a few people to do it for me since I still have a day job.

    Anyone that tells you it's passive is either a liar or rich enough to hire someone to deal with everything.

    But if your vision for your life is different than working for a company that's not yours then you got to start somewhere.

    Why not here, why not now?

    0Reply
  • Kenneth Pratt
    Flipper/Rehabber · Member since 2021 · 18 posts · 7 votes
    4y

    @Nathan Leger this is a awesome question! Being new myself I thought I would feel the same, but I don't. If anything I want to get as many mishaps under my belt now so I can run more efficiently. We're always afraid to drop something till we drop something. It sounds like you're prepared so just take your step. I'm excited to get it right and wrong but I will be doing it the same as you will be. You got this!!!

    0Reply
  • Charles Granja
    Rental Property Investor · Kansas City/Chicago · Member since 2021 · 126 posts · 113 votes
    4y

    It's not so scary once you understand what is at risk. Is it better to live life scared? Or is it better to have attempted to win, only to return back from where you came? I used to be scared of debt as well. You have to realize... You are trained to be scared of debt. Once you understand this things will change. 

    You just need to make sure you are not over-leveraged, keep good reserves, understand what you are buying (Cash flowing asset). It's not scary then. It's math

    You will find tenants in 2 weeks if you hire a property manager. What if you can't? Then you pay 1 month's rent until it is filled. That's what accounting for the vacancy is for 

    What if you can't resell? Depends on your exit strategy. If you are buy&hold the market high or low doesn't matter. You are playing long.

    1Reply
  • Giancarlo Sarmiento
    Member since 2019 · 32 posts · 5 votes
    4y

    Comparing current lifestyle working 9-5 seems scarier than making few mistakes in real estate. No amount of preparation will ever make you feel 100% ready. Obviously educate yourself as much as possible. But one would be foolish to think they won’t make errors in real estate. Create a base foundation of knowledge. Find the right market for you. Mitigate the risks. Build experience. Consider exit strategies. Address the “rational” worse case scenarios, create a plan or strategy when those scenarios occur. They eventually won’t seem as scary. Good luck 👍🏼

    0Reply
  • Account Closed
    Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
    4y

    The first thing to ask yourself are your fears reasonable. The ones you listed are entirely reasonable. Then ask if you can mitigate them. The answer is yes. But you cannot eliminate the possibility of what you fear actually happening. But if you have the resources and plan to mitigate them you can still succeed. But dont buy the kool aid pitched here about how easy it is  to buy some houses and never work again. Its not that.

    0Reply
  • Allen Williams
    Realtor · Jacksonville, FL · Member since 2019 · 95 posts · 87 votes
    4y

    @Nathan Leger

    So first off awesome stuff just starting to educate yourself and get things going. If I were you I’d take the apprenticeship route. I would find someone who is successful and ask if they need anything you can provide/build that relationship. And if you have nothing to offer just explain your passion and desire to learn (every investor has a start/help and many like giving back). Then you are taking the fear out of everything from the start. And when I mention take fear out it is more the fear of the unknown which sounds based on your comment you have which is very normal. But I would ask some of these questions to combat what questions you brought up.

    -what happens if I’m a huge success?

    -what happens if I make a lot more than I was thinking?

    -what if I realize the fears were overblown and I just had to take action

    -what if I create a better life than the “rat race”

    -what if I am able to instead of running someone else’s race I begin to run my own

    See you have bought into the corporate structure of life being full of unneeded risks and just go ahead and keep grinding away because it is safe. But it just depends on what you want. I was in that environment and once I felt like it was time to move on because I took a leap of faith it all worked out and can for you too!

    Good luck!!

    0Reply
  • Scott Osborne
    Flipper/Rehabber · Jacksonville, FL · Member since 2018 · 3 posts · 0 votes
    4y

    @Nathan Leger

    Yeah, I feel the same way but I'm an old dude. I have been working at the shipyard for many many years and I have always hated it. Now I am flipping houses, making pretty close to what I make working 10+ hours a day at the shipyard. I truly feel like I could make more $ if I went full time in Real Estate and that is my dream. However, I keep coming up with "what if's". Like what do full time real estate investors do about health insurance? Should I make myself a LLC first? I have been writing my goals in my journal every morning or about 3 years now. In my journal, I have been writing, "I will be a successful, full-time Real Estate Investor by 12/31/21, in Jesus name!". Yes, I am a Christian…sorry, if that offends anyone. But, my goal date is coming up soon and I feel scared!

    0Reply
  • Ben Anderson
    Investor · Wisconsin Dells, WI · Member since 2020 · 10 posts · 10 votes
    4y

    @Nathan Leger rich dad poor dad by Robert Kiyosaki.

    0Reply
  • Chirag Patel
    New to Real Estate · Yorkville, IL · Member since 2021 · 25 posts · 11 votes
    4y

    @Nathan Leger

    Nathan I am newbie like you in REI.

    But I always say one thing to myself, if I will fail I might have another chance to get up and do it again.

    But i have major fear of not doing it and losing that opportunity for every.

    0Reply
  • Matthew Irish-JonesBusiness Member
    Real Estate Agent · Buffalo, NY · Member since 2017 · 2k+ posts · 2k+ votes
    4y

    @Nathan Leger

    Repeat after me:

    “I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when it has gone past I will turn the inner eye to see its path. Where the fear has gone there will be nothing. Only I will remain.”

    Irish Jones Realty4.947 Reviews
    View Page
    1Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free