Anyone else get cold feet?

Question

What do you guys do when you start to get cold feet. I have a decent deal available for my market and the funds to invest. I now find myself finding reasons upon reasons to not move forward unless it's an amazing deal.

Also, I made the mistake of taking that $40k downpayment and running some numbers on simply investing it at modest returns. I know that I prefer the tangible asset of real estate and the control of real estate. I mean there are tons of upsides to owning property. I am officially in analysis paralysis.

Kristopher Hanks · Answer

I went through the same thing. I had a deal in front of me that was going to return 30% and I stared at the sheet and tried to find a reason not to do it. It's normal for this process to take place. It's the weight of the responsibility you would have for the property. It's a long term commitment. All long term committments should be thought about and analyzed. You just have to decide or if you already have decided, state your reasons over and over to yourself as to why you want to invest in real estate. Then ask yourself truthfully, is it fear that is getting in the way? If it is then what is causing the fear? Failure, what others may think of your decision, second guessing your ability to succeed at something new, is a significant other not on board with this form of investing? Whatever it is you need to square it away quickly. Before the deal is gone. I lost that deal cause I waited too long. I was doubting myself for no reason. I have succeeded at other forms of investing. Even if the deal does not work it is not a failure cause you will have learned something. I call it paying for your education. Step over the fear and make an offer. The weight of the decision will be lifted and you will feel great afterwards. Now go get your deal before I come and take it! ;)

Mark Parzych · Answer

@Andy Krzanowsky

It's common to think.... what if I do this deal and something else comes along that's better?

I do the same thing and it's sometimes hard commit.

But then you can also say... what if I do this deal and it takes 3?6?12? months until something else comes along that's better?

It's hard to know the future; maybe even impossible?. But we can control what's in front of us.

My advise is to set up criteria that's obtainable and do the first deal that meets your criteria. It's as simple as that. The what if game is a losing battle. The more deals you do the easier it gets so get started ASAP. Otherwise you'll fall behind.

It's rare that someone says "I made a huge mistake buying this property". Many times mistakes turn out to be learning encounters that's beneficial in the long run. Usually we hear about all the stories about deals that have been passed up as the real mistakes.

Mark Parzych · Answer

@Andy Krzanowsky

If you have a bunch of equity why don't you just refinance to pull money out and keep it... if the numbers make sense that is. Interest rates have gone up but there's nothing we can do about that.

Just think of it as your first BRRRR

Anyone else get cold feet?

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