Fear Running Rampant!

Investor Mindset
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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

Podcast Guest on Show #130
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Jim Wineinger
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.

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  • Account Closed
    Real Estate Investor · Longmont, CO · Member since 2011 · 56 posts · 37 votes
    14y

    Getting a "standard" realtor contract is alright, as long as you attach your custom addendum that effectively erases the junk in the main contract body that you don't want, and adds superceding language that you want.

    Most realtors are prohibited from "unauthorized practice of law" under their state licensure laws. They cannot interpret or write custom contracts. They must fill in the blanks on the state-approved form. They will freak out when you submit a custom contract or a very complex addendum. So, keep it simple and to the point.

    I like to use very simple weasel clauses, something like this:

    1. "This contract is contingent on Buyer's written approval, in Buyer's sole subjective opinion, on all inspections, reports, analyses, insurance quotes, surveys, that Buyer may deem necessary. If Buyer does not provide written approval within the specified time period, then this contract shall terminate and the parties shall be reasonably restored and released from liability and any duty to perform."

    2. "The parties agree that in the event of contract termination due to an unsatisfied contingency, closing agent shall immediately return the earnest money deposit without further approval of the parties."

    Run it by your attorney and clean it up anyway you want. It simply means that your written approval during the due diligence period depends on whatever you think is important. If you decide to cancel, then you don't need further permission from the seller to get back your deposit.

    With those two clauses, you really have very little risk and not much to fear of getting into a bad deal.

    Two cents worth. Your mileage may vary.

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  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y
    Originally posted by Chris Clothier:
    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!
    Chris

    Chris, I remember that thread and I have stated it time and again, this business is entirely about relationships and those who focus on building them will do far better than those who do not. With that said, when I stated the "top REO agents" it was not intended to be the #1 agent in the land, only those who consistantly had a specific number of properties available at any one given time period (in other words, not one who only had 5 listings of REO's but agents who had 25+

    Your decription of the #2, #3, or #4 agent in the area is rightr on, and follows my protocol and experience as well. In fact, it could be said that the actual #1 or #2 top REO brokers are not quite as good to work with for us investors because they focus on their quantity and do not adjust from their own protocols whereas an agent who gets lots of properties but is also a bit more on the hungry side and their protocol is built around having their top 3-5 investors who will buy 75%+ of their product are those who I like to work with.

    Great point and glad you mentioned it so that all can know exactly the meaning of what I was trying to say.

    Podcast Guest on Show #130
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  • Renae Bliss
    Involved In Real Estate · Milwaukee, WI · Member since 2009 · 124 posts · 7 votes
    14y
    Originally posted by Jim Wineinger:
    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.

    THAT IS ONLY JUST THE BEGINNING OF MY "hurdles"! I look around, and all I see is things in my way... no car, no $$, getting cold out & the city busses are getting more dangerous, etc. Don't know anyone in my area to "shadow", etc.

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  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Renae, the many hurdles it takes to get to the paycheck is what makes the paycheck, in other words, if it were all easy, anyone could do it. With that said, your comments have some negative or "give-up" feelings - Do not let that that happen, those who refuse to give up and stay determined are those who succeed.

    You will have to work to find another to "shadow" or work hard on your own to educate yourself in the strategy you intend to use. Stick with it.

    Podcast Guest on Show #130
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  • Lynn McGeein
    Real Estate Agent · Virginia Beach, VA · Member since 2012 · 2k+ posts · 1k+ votes
    14y

    This is a great thread. Every time one of my tenants gives notice, the fear kicks in ... turnover costs, how long will it be vacant, what if investing in these uses all our savings, etc., makes me want to sell them all and not deal with it any more and certainly not buy any more, even though our goal is to buy at least 5 more in the next 5 years. So it's not just fear of taking the initial step, it's the fear that comes at each and every stage.

    Then I remember why we're doing this, to be financially independent in 15 years and have rental income coming in from multiple properties so even if one or two are vacant, we still have income to rely on.

    I read once that every life has problems, but the key to living well is choosing the problems you want (the ones we have some control over, of course, not illness or injury). If we take on real estate investing, we know there will be vacancies, maintenance issues, emergency repairs, etc. When I keep in mind that we chose to have these problems and solving them can make a better future for us and our children after us, it calms me down and helps me think more clearly, not just react to the fear of the moment.

    In my opinion, that's much better than having problems forced on you like no retirement if social security is bankrupt when we qualify for it or someone has raided the pension fund we relied on and now we have nothing but the minimal government guarantee instead of what we were promised. When I'm in panic mode, my husband reminds me that he's never met anyone who regretted having houses paid off and rental income later in life, but he's met many who wish they had more to fall back on when they retire.

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  • Will BarnardPro Member
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    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Great post Lynn, great thoughts, we appreciate your input.

    Podcast Guest on Show #130
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  • Loretta Wills
    Investor · VA · Member since 2021 · 11 posts · 8 votes
    4y

    Wow, thank you for these words.  I know these words were written so many years ago, but as I start this journey, the fear keeps me on my toes and gives me that extra push.  (That and of course, my God, which is no fear at all).  It is just a comfort to see my fellow investors say, Yes, you may feel fear, but don't let that impact your destiny for financial freedom.  I look forward to putting my first successful real estate deal out here so that others will learn and continue to grow, NO MATTER WHAT.  

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