I want to invest... I'm terrified to start.

[Samuel Tupy]

Hey, I'm Sam!

I want to buy my first investment property, but I'm so afraid I'll mess it up.

I've been interested in real-estate for a few years, but for the first time, I find myself in a place where I think it could actually be possible.  I have a few grand in cash set aside and a little equity in my current home I could use toward an investment property.

My brother-in-law has seen great success with the BRRRR method in NC over the last few years and I would like to try my hand. I'm just nervous about such a big investment. I fear the possibility that I could overlook something on my first investment that would shut the door on future opportunities altogether.

I have 3 young kids and I'm motivated by a desire to give them opportunities and stability I never had. My wife and I are in our early 30s and we have steady income and a start at retirement.  I know rationally, this is a good base to build from, but I can't shake the sense that one bad bet when I'm first starting out could shake that foundation entirely.

Do you have any tips to get over first-time jitters?  What mindset did you cling to in starting out?

I've started this journey by reaching out to a handful of real-estate professionals I know and asking for any tips they can give me and it's given me a little more confidence.  My goal right now is to learn all I can... that's how I ended up here.

I would love to hear any other advice you would offer a newbie like myself!

[JD Martin]

If you want to listen to a horror story click on my appearance on the podcast (in my signature below). I lost a lot of money first time out. I've made a whole lot since then. 

If you weren't nervous or scared then you would be delusional or a psychopath. That feeling is your brain telling you to beware. But beware isn't the same thing as do nothing. A lot of money can be made in real estate.

Start small. Forget about gurus and BRRRR and all the other hype and nonsense you hear all over the place (including around here). Find one decent little house in a decent area that you can clean up and rent for a reasonable amount of money. Don't try to hit a grand slam - just put the ball in play. Accept that you're going to make some mistakes. You're going to improve things that don't get you any more rent and you're going to cheap out on things you should have replaced. You'll probably pick at least one tenant that's not ideal. You'll be here every other day asking about collecting rent and vaping in the house and sneaking in dogs and complaining neighbors and a thousand other things you don't even know about. All of that is OK. It is part of the learning process.

Real estate is a long game. If you buy carefully, select tenants carefully, and hold long enough there's almost no way to lose money. Almost always the money lost in real estate is when you have to sell when the timing is not ideal. Think of it this way - if you bought a house on a 15 year note, where the rent didn't put a dime in your pocket but at least covered your costs, in 15 years without doing anything else you have an asset worth probably at least your initial cost + inflation, free and clear, paid for by your tenants. And you didn't even have to commit very much of your own money because the bank loaned it to you. And you got tax breaks along the way from the government.