New Investor: Fear of starting

New Member Introductions
6yFollow

New Investor: Fear of starting

Stephen Colaco
Member since 2020 · 8 posts · 6 votes

Hello BP, my name is Stephen and I am looking to start my real estate investment journey. I have been interested in real estate investing for years because my family has always drilled it into my head that it is a good investment. Well I guess I am finally taking their advice. I have been reading a lot of the posts, listening to the podcast and reading the books put out by BP and the ones recommended by the show hosts and the guests. I am sure that this has been asked before but what has helped you get over analysis paralysis and fear of, "What if I am making a mistake? It is an expensive mistake" or "Can I really do this? If it was so 'easy' why isn't everyone doing it?" I am absolutely going to go through with it and buy but I am just looking for what you all did. Any words of encouragement or thoughts of what helped you with jumping in would be really great.
I am looking to buy in the next couple months because I am transitioning to a new job and a new location, so I want to be wise about where I am buying. I am looking to buy a duplex and house hack it then rent the extra rooms in my unit. I hope you all stay safe. Have a great day and thank you for reading.

P.S. As a nurse, please stay inside so we don't have to meet that way.

3Reply
34 views

Most Popular Reply

Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
6y

Real estate investing is a very forgiving thing. I manage hundreds of rentals for 150 different owners. The vast majority of them have no idea what a good investment looks like, have never analyzed a rental property in their life, and they made costly mistakes that sometimes ate up several years of income. Yet they continued to plug along and eventually started making some good cash flow and appreciation. 

My point? Just jump in. Your mistake won't kill you and your mistakes will be erased over time while you figure things out.

You can improve the odds by learning some basics of analyzing investments and trying to buy better deals than what the average investor purchases. Watch a few videos from Brandon on YouTube and learn how to analyze. Then analyze at least a dozen or so properties and see what constitutes a "good" deal. Then jump in and don't look back.

P.S. I prefer to meet people outside because I operate on facts, not fear. We don't even know the death rate of COVID-19 because we don't know the number of people infected that show no symptoms. Right now, based on numbers we do know, the survival rate for a person under 45 in NYC is about 99.94%. If we knew how many people were infected but a-symptomatic, that number would be around 99.99%.

The DIY Landlord Book4.7247 Reviews
WebsiteView Page
2Reply
See this reply in the discussion

9 Replies

Jump to latestLatest
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Real estate investing is a very forgiving thing. I manage hundreds of rentals for 150 different owners. The vast majority of them have no idea what a good investment looks like, have never analyzed a rental property in their life, and they made costly mistakes that sometimes ate up several years of income. Yet they continued to plug along and eventually started making some good cash flow and appreciation. 

    My point? Just jump in. Your mistake won't kill you and your mistakes will be erased over time while you figure things out.

    You can improve the odds by learning some basics of analyzing investments and trying to buy better deals than what the average investor purchases. Watch a few videos from Brandon on YouTube and learn how to analyze. Then analyze at least a dozen or so properties and see what constitutes a "good" deal. Then jump in and don't look back.

    P.S. I prefer to meet people outside because I operate on facts, not fear. We don't even know the death rate of COVID-19 because we don't know the number of people infected that show no symptoms. Right now, based on numbers we do know, the survival rate for a person under 45 in NYC is about 99.94%. If we knew how many people were infected but a-symptomatic, that number would be around 99.99%.

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    2Reply
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    Stephen,

    We've all had these thoughts before our first RE investment. The truth is you can't know everything and you're going to make mistakes. But there are investors out there who started, and have successfully purchased properties, with far less knowledge than you have. (you're a nurse so I know you're smart)

    The only thing you can do is take necessary steps to mitigate your downside - have reserves, add some cushion to your numbers, etc. 

    Set your criteria then when a property meets your criteria, pull the trigger!

    [email protected]832-770-7090
    1Reply
  • Stephen Colaco
    OP
    Member since 2020 · 8 posts · 6 votes
    6y

    That makes me feel better. I have been stressing over the fact that it could put me in an uncomfortable position financially. That is very interesting because I thought it would not be possible. 

    I like your mentality. I appreciate your words of encouragement and it makes me feel better knowing that it is not something that could ruin me overnight. Because I am sure you have heard those horror stories and I just don't want to be another one. 

    I will definitely take a look at that video. I have been using the investment calculator on Bigger Pockets to get a better idea as to how to do some of it in my head. 

    That is a very fair way of looking at it. I just want everyone to stay safe is all.

    @Nathan Gesner

    0Reply
  • Stephen Colaco
    OP
    Member since 2020 · 8 posts · 6 votes
    6y

    @Cameron Tope Do you feel like it has gotten easier after the first one? Cause I think that with most things that it would get more simple after the first one. I have been adding about an additional 20% on top of my projections. Do you have a general rule of thumb that you add to your RE deals that cushion it? Thank you for your encouragement man. 

    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    6y

    Check out their YouTube Playlist with videos on how to analyze single-family or multi-family. 

    The DIY Landlord Book4.7247 Reviews
    WebsiteView Page
    0Reply
  • Dmitriy Fomichenko
    Solo 401k Expert · Anaheim Hills, CA · Member since 2012 · 18k+ posts · 6k+ votes
    6y

    @Stephen Colaco

    Welcome to the BP family! Good to have you here! Here are some recommendations for you:

    Find and connect with other BP members that are in your area: https://www.biggerpockets.com/search/users
    Set up keyword alerts to be notified of the topics that interest you: http://www.biggerpockets.com/alerts
    Read Beginner’s Guide: https://www.biggerpockets.com/podcast

    Wishing you the best!

    0Reply
  • Craig CurelopBusiness Member
    Real Estate Agent · Post Falls, ID · Member since 2016 · 1k+ posts · 1k+ votes
    6y

    Hi @Stephen Colaco. Welcome to BiggerPocket!

    It is good to be a member of this community of Real Estate investors! To overcome your fear in investing, you need to start educating yourself and it's good that you are here. BiggerPockets site offers a lot more information and resources for your REI journey. You may connect with other members and learn from their success stories. I am giving you some insights that might help you starting:

    1. Subscribe to the BiggerPockets Money and Rookie Podcasts

    2. Attend the FREE WEBINARS

    3. Attend a Meetup in Your Area

    4. Purchase the Beginner Books: How to Invest in Real Estate, Set for Life, The House Hacking Strategy

    5. Peruse the forums! Ask questions! Answer Questions!

    You take care too as nurse-frontliner!  Good luck and see you around the site!

    Best regards,

    [email protected]Podcast Guest on Show #350
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    6y
    Originally posted by @Stephen Colaco:

    Hello BP, my name is Stephen and I am looking to start my real estate investment journey. I have been interested in real estate investing for years because my family has always drilled it into my head that it is a good investment. Well I guess I am finally taking their advice. I have been reading a lot of the posts, listening to the podcast and reading the books put out by BP and the ones recommended by the show hosts and the guests. I am sure that this has been asked before but what has helped you get over analysis paralysis and fear of, "What if I am making a mistake? It is an expensive mistake" or "Can I really do this? If it was so 'easy' why isn't everyone doing it?" I am absolutely going to go through with it and buy but I am just looking for what you all did. Any words of encouragement or thoughts of what helped you with jumping in would be really great.
    I am looking to buy in the next couple months because I am transitioning to a new job and a new location, so I want to be wise about where I am buying. I am looking to buy a duplex and house hack it then rent the extra rooms in my unit. I hope you all stay safe. Have a great day and thank you for reading.

    P.S. As a nurse, please stay inside so we don't have to meet that way.

     Welcome aboard Stephen.

    0Reply
  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    6y
    Originally posted by @Stephen Colaco:

    @Cameron Tope Do you feel like it has gotten easier after the first one? Cause I think that with most things that it would get more simple after the first one. I have been adding about an additional 20% on top of my projections. Do you have a general rule of thumb that you add to your RE deals that cushion it? Thank you for your encouragement man. 

    You're correct - it definitely gets easier after each one. 

    I don't have a ROT I just make sure any rentals I want to buy cash flow a little more than normal. I also wouldn't buy anything that barely met my criteria. 

    Hope that helps!

    [email protected]832-770-7090
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free