When does the nervousness end??

Question

Here is the story. I have completed 5 sfr deals and am playing the buy and hold game. I like it so far and feel it is working out well. Each of the properties are cash flow positive because I stuck with the conservative 50% expenses analysis and 2% rents guidelines explained on this site.

My problem is that I am closing on a 6th property in a few weeks that is the same as every other property I have, but I still get the nervous feeling moving towards closing that I got on my very first deal and every deal after that. I can not figure out what my problem is.

When does the nervous feelings go away. I have a strict system and am simply adding properties to a system I already have in place and have seen success now that I have 5 properties. Can some of you more experienced landlords chime in and tell me when the nervousness went away for them. 2 props, 5 props, 10 props. It is funny because once I close, it is business as usual.

Let's hear from all the big dogs out there.

Bill Gulley · Answer

Hi, have that feeling is a good thing, keeps you on your toes as Richard said. Looking back, seems like I must have freaked on my first few deals, the remorse goes away as Mike said, you begin to have faith in yourself. When I closed my last one it was without the blink of an eye, glanced at the closing docs and signed and checked the HUD. Took me less than three minutes on a REO closing and walked out with a smile and the keys. Later I found that I had some electrical problems that had not been uncovered. Oh well! No big deal! Seems there is always something and you just learn to deal with stuff as it comes. IMO Bill

Rich Weese · Answer

I freaked out on my first large purchase-35 years ago. 30,000 sq ft office building, new, EMPTY, and a $14, 909 monthly pmt? The next 1000 plus deals were easy. Then, last year  after 30 years retirement, writing a 1.4 million dollar check as a downpayment on 154 units, got the juices flowing and some trepidation. Now, cash flowing nicely, 98% full and no more worries.
     I agree with others. If the hoework is done correctly, shouldn't need to worry. Rich

Michael Rossi · Answer

I can't honestly say that I was ever nervous  buying a rental.  I have confidence in the numbers and my ability to manage them.

I have been nervous about other things, such as my first few evictions; speaking in public, etc.

Brian Levredge · Answer

I get nervous every time I buy a place and I like that.  The bottom line is that despite all the number crunching and analysis that tells us a deal is a good one, there is always the unknown or uncontrollable to a degree.  "What if it doesn't rent as quickly" or "What if it doesn't sell for as much as I think" and on an on.  We can reduce risk, but never truly eliminate it.  Otherwise, everyone would be doing this.

David J. · Answer

"it is getting better for my wife ;-)"

well played, lol. On the first 4, my wife would always say, "are you sure we need another one?" But on the 5th one she finally piped up and said, "you can't possibly pass that one up at that price," when I showed her the property. Seems like she doen't get nervous at all anymore, where I still get the butterflies.

Mark Updegraff · Answer

I'm only a few ahead of u (8 sfr) - just closed the last.... Think we'll be nervous whenever investing thousands of hard earned $$$s
it is getting better for my wife ;-)

Cheers!

Richard Warren · Answer

Hopefully the nervousness never ends.  It will keep on your toes and stop you from getting complacent.  If you get careless, you start making bad deals.

:cool:

Ralph S. · Answer

First off, David, congratulations on a good start.  That a real estate attorney would be here crediting BP and the BP nation for sound investing guidelines only reinforces my belief that there is no end to learning and BP is the premier site when it comes to REI.  Hope you continue to visit and contribute.
          While not a big dog, myself, I think I like that nervous feeling.  For me, it keeps me on my toes when too much is out of my hands (appraisals, inspections, underwriting).  With so much out of my direct control, and almost every purchase and sale have had unique little glitches that had to be dealt with, I don't think that nervous feeling will ever go away.