I want to start investing soon, but I have so many fears. What will it take to overcome all of them. I'm scared to lose all my money. I'm afraid I'll mess up. Please help me understand what I need to do to get myself mentally prepared.
1-GO to a Local Real Estate Investors Meeting (held monthly IN Your area somewhere close by....do a google search on Your city's name & "REIA"
2-ASK ?'s of the real INVESTORS
3-Focus on that which You wish to accomplish?
4-Go back 2 more meetings & Find the people Specializing in that which U Think I MIGHT be interested in....
ask them if they'd like a working w/a PARTNER on 1 project, or maybe if they'd like some volunteer help 2 get a feel 4 what they're doing?
IF U want 2 go on the safe side...talk 2 the private lenders...U're funding at that point flippers/other investors/re-habbers & they're paying YOU 10-18% 4 the use of Your money...while YOU hold the 1st mortgage against the property they're prepping 2 sell 2 pay You back;
It's both an excellent investment (always LTV}
& the most secure place U could ever put Your $$?
BE the BANK!
They're not stupid....
they take moron's w/"savings" accounts(paying 1%), & CD;s(paying2-4%) & turn around & LOAN the money to folks w/Top shelf Credit for 5-9%....hmmmm?
Good luck in Your ventures, & if I can ever help, please don't hesitate 2 email?
The fear you've got is only natural. As long as you're knowledgable about your investments, you should not be afraid. Do your DD, and make sure all the numbers work. Things always go wrong, but that comes along with the territory.
You can't hide behind your fear. If you do all the legwork and something looks like a good deal, how could you possibly be afraid?
It is like the first day of school - If you don't give it a shot, you'll never know what you've really been afraid of. If you're careful - its going to be nothing.
This post has been removed.
Originally posted by "JohnnyUtah":
If you do all the legwork and something looks like a good deal, how could you possibly be afraid?
Easy. Some of us are just wired that way. All I can say is that for us nervous types it gets easier over time. It's kind of like some performers that say they still get nervous right before going on stage - even after years in the business. The nervousness is normal and can only be counteracted by preparedness.
Basically, just tell yourself that you are going to screw up but that there is nothing you can screw up so badly that you cannot handle. Mistakes are, afterall, one of the ways we learn.
Hope this helps.
I am getting myself ready to invest right now. I agree 100% with the suggestion to join a real estate investment associateion. I just went to my first meeting adn it was a great confidence builder. I made a couple of good contacts.
This second part is going to soudn arrogant, but I don't mean it that way. This particular meeting invovled some Q&A on various aspects of real estate investing. You know what? I knew about 90% of the answers to the questions peopel were asking. The more I looked around and listened, the more I became convinced that if 75 or so people in the room could do it, so could I. Again, I'm not trying to sound arrogant. My point is I realized I had done enough educating of myself and it was time to take action. Good luck.
I'll third the idea of going to an REI club and soak up as much as you can. Another thing - you'll be with like minded people. You'll see you aren't the only one timid (guests and new members) and be in the company of people who are successful. You'll get to know some people and feel less afraid of the whole process.
If you think you will lose all your money - you just might! So like others have said - do your numbers - make sure they are accurate, and if a deal looks profitable - go for it.
No one ever said you won't do a bad deal - how can anyone ever succeed without failure? It's not a bad word sometimes. :D Good luck.
The 2 simplest ways to lower your fears are – 1. Buy the ugliest dog of a property in a good or great neighborhood for around 50 to 65% below the current market value of similar fixed up properties in the same area. 2. Use (OPM) “OTHER PEOPLE’S MONEY.” Terri, it might be helpful to think of OPM this way. If you can use OPM you’re not putting your cash at risk to buy and rehab properties, so there is nothing to fear but fear itself. However you could be risking the cost of an appraisal/home inspection and an earnest money deposit if OPM requires them.
Facts about professional OPM…
OPM approves loan based on the equity position they have in the property not the borrower’s credit history or income. OPM will not be available if the deal doesn’t make sense. OPM will not be available to a borrower if OPM doesn’t believe the borrower has what it takes to oversee the buying, rehabbing and selling the property in a timely manner. You cannot get OPM if there is a chance OPM will lose their money. My OPM doesn’t like loans under $200,000 but loves loan over million $ - (if your going to dream, dream big, the margins are better.) Savvy OPM will setup safeguards within their funding to insure the borrower success. EXAMPLE- My loans are typically set to make the first 6 months of payments so you can concentrate on rehabbing and selling the property ASAP. Savvy OPM “NEVER LOANS TO OWN”. We absolutely don’t want to foreclose on the property - we want our points, interest and to be paid back ASAP so we can put our money back to work. But understand, OPM is all business and you should absolutely expect OPM to start the foreclosure process if you’re a 1 day late on an interest payment.
The hardest part of flipping distressed properties is finding the right properties to flip along with finding the right lender that will fund your deals. If you find the right properties, my OPM will CYA (cover your ***) and of course mine plus my OPM will often help you structure your deal.
If you want to get a better idea of my lending parameters, take a look at my other post.
AKA - OPM
Hi - I have a deal right now that is going for 2Mil - needs 600K worth of work and can probably sell near 3.9Mill or more. Of course I don't have the 2Mil to buy it. How would this deal work? TIA
TIA, email me your name and phone number and I'll call you right back
Opps Roni, [email protected]
Free eBook from BiggerPockets!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!