What problems do new investors face entering real estate for the first time?

I would say this right here is probably the biggest problems new investors face. A case of the "what ifs". Second guessing, and lack of confidence. Investing in Real Estate is a risky business, but so is anything else in life worth pursuing. We don't get where wed like to be by standing still. There needs to be some sort of sacrifice involved, and a lot of people just don't want to do what it takes. I had no idea what I was doing when I bought my first house (gut rehab). But I made it work because there was only one other alternative. I just did what I had to do.

Everything. Everything is a challenge when you start out. It isn't until you find out what you are good at and gain experience that anything becomes easier.

@Kerrel Gomes Not having enough reserve money.

@Kerrel Gomes 1. Finding a good deal 2. Being undercapitalized (inadequate reserves for the inevitable fact that most investment property will have capex, deferred maintenance, or tenant issues/vacancy in the first year) 3. underestimating capex, deferred maintenance, tenant issues/vacancy in the first year (or two)

Lack of knowledge and not enough connections. The best thing a new investor can do, in my opinion, is devote a lot of time to educational resources and attend local networking events.

Fear of the unknown. Uncertainty about doing something for the first time with potentially a good amount of money at risk.

@Kerrel Gomes I would think the hardest part of starting for many is the financial aspect. It takes a lot of money to invest in real estate. Even for the person who buys their first property with $5000 and an FHA loan. That may have been a very hard earned amount depending on their income. Fear of losing it would be great. No one wants to fail, but many do fail and that fear of failure surely slows many down as well.

New guy here...my biggest fear is the fear of "what if." What if I buy the wrong place? What if I pay too much? What if I can't find financing? What if a big expense hits early on? Etc...

What problems do new investors face entering real estate?What problems do new investors face entering real estate?

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What problems do new investors face entering real estate?

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