Fear Running Rampant!

Fear Running Rampant!

Will BarnardPro Member
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Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes

Background for those that don't know me: I am a full time real estate investor and I have invested in nearly every aspect of real estate. Recently, I have added transactional funding services to short sale and REO investors.

If there is one common denominator I have seen throughout the years, it is FEAR! Fear has a way of preventing many from taking action and that is the prime cause of failure (in my book, never getting out and trying is a failure!).

One of my favorite motivational sayings is this: The rich act in spite of fear while others allow fear to stop them.
This holds true and I have seen consistently that those who allow fear to stop them, never really get ahead.

If you are one of the many contemplating some type of real estate investing strategy and have been too scared to start or too fearful of taking action, then you need to realize what is stopping you. It is almost always one of two or both of the following items: Fear and laziness. If you are lazy, you are screwed. If you are just fearful, you need to just take action. There is no rule that states you need to do a huge or high dollar transaction to get started. Even if you do a $500 deal, that is a starting point and gives you the motivation and confidence to do another and improve on your goals.

Use BP Nation as your partner in education, in finding deals, in selling deals, in finding money, in finding a job, in finding a friend, in finding a business partner, and the list goes on. The opportunities are endless and allowing fear to prevent you from getting started and taking action is a serious mistake!

Happy investing to all!
William Barnard

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Real Estate Investor · ten mile, TN · Member since 2009 · 1k+ posts · 374 votes
16y

Will, as far as fear goes, those that do actually get out and do something will still tell you that they are still fearful. But this fear I would describe as respect.

They say that if you play with fire you are bound to get burned!!!

But I have found out that if you feed that fire and watch it you learn it tendencies and with that comes the respect for what it does and how it does what it does.

Respecting something allows you to do more with it because you have learned how it reacts to certain stimulus. This respect does not keep you from being "burned" but does allow you to do more with it because you have learned it.

So, everyone, get out there and change your fear to respect. Expect to get burned a little and prepare for it so it is not a major setback and keep going.

See this reply in the discussion

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  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    That is certainly one way, but I teach another.

  • Real Estate Investor · the villages, FL · Member since 2008 · 5k+ posts · 3k+ votes
    16y

    If you find a hungry, aggressive realtor, consider yourself lucky,imo. Rich

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    They are out there, the key is to locate the top dog REO brokers and then form a relationship with them.

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    Bump . .

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    16y

    "That is certainly one way, but I teach another."

    So has this whole thread really been a teaser ad for a course or seminar you are going to offer? Or were you planning on sharing your techniques with the B.P. members?

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    You should certainly re-read my original post as it had nothing to do with any program, only a plug for biggerpockets as I feel it is a valuable tool for all who particpate as well as some motivation for those who have been dreaming or siiting on the fence, but taking no action.

    Not sure where your hit below the belt stems from as I am one who contributes tremendously to this site and I really don't appreciate your comment. Nowhere in this thread did I make any reference to any training program I do or don't have.
    The subject topic changed slightly by other posters and I simply responsed. In fact, I have shared many of the strategies I use, you simply need to spend some time to find the answers.

    Back on point . . . fear running rampant!

  • Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    16y

    Will, it was said with a smile on my face and laughter in my heart. Nothing low hitting at all. I have read your posts for a year and a half and have appreciated all of your knowledge and sharing. I have attended REI meetings where you spoke and shared. I was teasing you and thought it was evident in the language of the post.
    ...but you did dangle a carrot in front of the donkeys eyes, and I do so want a little bite...

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    Thanks for clarifying that, your humor went well over my head. Need to sharpen that tack of mine! :)

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    I wanted to dig this thread up with the fear meter rising again. I found the following article from Chuck Carnevale on Seeking Alpha today:

    Warren Buffett Was Right: Ignore Political and Economic Forecasts

    Seldom does a day go by when we don't have a doom and gloom thread on BP about the financial world melting down, hyperinflation, or some other nonsense. The article above cites the following quote from Warren Buffett:

    //Begin Quote
    We will continue to ignore political and economic forecasts which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War, wage and price controls, two oil shocks, the resignation of a president, the dissolution of the Soviet Union, a one-day drop in the Dow of 508 points, or treasury bill yields fluctuating between 2.8% and 17.4%. But surprise: None of these blockbuster events made even the slightest dent in Ben Graham's investment principles. Nor did they render unsound the negotiated purchases of fine businesses at sensible prices. Imagine the cost to us, if we had let a fear of unknowns cause us to defer or alter the deployment of capital. Indeed, we have usually made our best purchases when apprehensions about some macro event were at a peak. Fear is the foe of the faddist, but the friend of the fundamentalist."
    //End Quote

    News flash....the world ISN'T ENDING. Get out there and make some money while everyone else quivers in fear.

  • Altus, OK · Member since 2008 · 2k+ posts · 690 votes
    15y

    Warren is such a wise man. Always enjoyed his investment advice.

  • MI · Member since 2011 · 228 posts · 75 votes
    15y

    He is pretty shrewd. I heard his company benefited handsomely from the bailout money.

    http://washingtonexaminer.com/blogs/beltway-confidential/2011/07/warren-buffett-continuing-profit-his-investment-bailout-why-okay

    Freaking chronie-capitalist. Gotta be a big fish, though.
    PG

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    15y

    Thanks for the thread revival Bryan. It is true that fear is lurking its ugly head, however, I believe that it is always there and it is only those who act in spite of it are those who are successful.

    The new doom and gloom may or may not be correct, but for me, I intend to prepare for it and figure out the best way to profit from it. I tend to like capitalism.

  • Real Estate Investor · Charlotte, NC · Member since 2011 · 252 posts · 56 votes
    15y

    I'm pretty practical and very skeptical of the doom and gloom. The economy will get better despite what everyone says.

  • Investor · CA · Member since 2010 · 150 posts · 40 votes
    15y

    I highly recommend "The Dollar Crisis" and "Benjamin Graham's Intelligent Investor".

    I have my thoughts of doom and gloom, but it won't keep me from acting.

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    15y

    It's pretty simple in my book. If it all falls apart, it won't matter if you have 1 or 100 houses or none for that matter, because we'll all be screwed anyway.

  • Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    15y
    Originally posted by Carlos Flores:
    It's pretty simple in my book. If it all falls apart, it won't matter if you have 1 or 100 houses or none for that matter, because we'll all be screwed anyway.

    Carlos, I wonder what you (and others) mean by this? People will still need shelter and pay whatever the post-economic collapse market dictates, won't they? Or do you mean after the human race is gone? Or something in between. Historical precedent?

  • Commercial Real Estate Lender / Syndicator · Dallas, TX · Member since 2011 · 888 posts · 309 votes
    15y
    Originally posted by Jon Klaus:
    Originally posted by Carlos Flores:
    It's pretty simple in my book. If it all falls apart, it won't matter if you have 1 or 100 houses or none for that matter, because we'll all be screwed anyway.

    Carlos, I wonder what you (and others) mean by this? People will still need shelter and pay whatever the post-economic collapse market dictates, won't they? Or do you mean after the human race is gone? Or something in between. Historical precedent?

    My statement was meant as an extreme counter to being paralyzed by fear. Despite the extreme statement, I don't advise throwing caution to the wind. Risk and action must be calculated and thought out.

    With that said, let me pick something just for the fun of it.

    We currently have a host of laws enforced by a system of government. We can exercise our rights within that system. The severity of a collapse, however, will dictate whether we have rights much less the ability to enforce them.

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    15y

    Your comment regarding your own statement of "extreme" is something I agree with, nothing more.
    I created this thread as a means to help others dispell their fear and take action, not the opposite. As far as my doom and gloom statement, it too was stating that in the presence of it or not, I plan to figure out the best and most profitable strategy as it does or does not approach.

  • Investor · -, IL · Member since 2010 · 409 posts · 616 votes
    15y

    Getting back to Will's intention of this thread, I think the more time I spend on BP learning, the more fear has gone away for me. I finally got myself to where I have multiple rental properties and now am trying to build up the confidence in taking on some fix and flips.

  • Brookfield, WI · Member since 2011 · 31 posts · 18 votes
    15y

    There is nothing to be fearful of if you understand what you are doing and have a long view of history:

    1) The correction in the real estate market has refocused investors away from the greater fool theory ("I'll buy this property in hopes that someone will pay me more for it in a few years") and back to the fundamentals of investing -- that the intrinsic value of a rental property comes from the stream of income it produces over time.

    2) Property values are falling because supply is greater than demand. When these two forces come back in balance, the housing market will be healthy again. The population continues to grow, and this will drive demand for many decades to come. The oversupply may take a year, or two, or five to draw down ... but it will happen.

    3) The thesis that homes go up in value remains valid in the long run. As long as there is inflation (i.e. almost always, in a fiat currency situation) and population growth, the general trend will be upwards.

    4) Don't try to catch a falling knife. None of us can accurately predict the bottom of the market. Buy when the returns look good, and time will take care of the rest. Real estate is a long-term investment.

  • Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
    15y

    Solid post Roger...thanks for sharing your thoughts.

  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    15y
    Originally posted by Ryan B.:
    Getting back to Will's intention of this thread, I think the more time I spend on BP learning, the more fear has gone away for me. I finally got myself to where I have multiple rental properties and now am trying to build up the confidence in taking on some fix and flips.
    Good for you Ryan, glad to hear that.

    @Roger - Great post on your thoughts. I agree with the basis of supply and demand and would add that the economy and things that affect it, also affect demand and therefore, housing prices.

  • Condo Investor · Shanghai, Shanghai · Member since 2011 · 14 posts · 2 votes
    14y

    Great post and a motivation booster for me.

    Although I still have fear I have decided to take action and come to the USA and do some on the ground researching in early 2012

    The areas I will be focussing on are Las Vegas, Phoenix, Tampa, Atlanta.

    And a few other places but those are for leisure.

  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    14y
    Originally posted by Peter T.:
    Great post and a motivation booster for me.

    Although I still have fear I have decided to take action and come to the USA and do some on the ground researching in early 2012

    The areas I will be focussing on are Las Vegas, Phoenix, Tampa, Atlanta.

    And a few other places but those are for leisure.

    Peter -

    Glad to hear you are actually coming to the cities and not just researching on line! Best of luck in 2012.

    Chris

  • Chris ClothierBusiness Member
    Rental Property Investor · memphis, TN · Member since 2009 · 2k+ posts · 3k+ votes
    14y

    Will -

    You made a post on here some time ago about looking for the top REO agents and that is who you work with. I think you were responding to a post about good agents being hard to find or something to that effect.

    I would advise something a little different that has worked for us. We looked for agent #2 or #3 or even #4 on the list. They were experienced knew what they were doing and more than happy to work with someone else - especially a cash buyer - to work their way up to #1.

    So we looked for an agent that might be a little hungry or at least motivated by the challenge of moving up!

    I like the thread - it's important for everyone to remember that as long as you are looking up - looking where your going - its impossible to be afraid. Fear creeps in when you look down.

    Chris

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