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Posted about 3 years ago

How To Cure Analysis Paralysis

If you are not familiar with analysis paralysis, it refers to having a hard time making a decision and pulling the trigger. If you are familiar with analysis paralysis, I feel your pain, I’ve been there. It is a lot like jumping off the high dive for the first time. You might stand up there waiting to get the nerve to jump but at some point, you need to rip the band-aid off and go for it. If being in your own head is stopping you from taking action, I have a few ways to move past that.

Baby steps: I have found that if you take the first next step, it becomes so much easier to move forward instead of trying to overcome a huge task. For example, let's assume you want to purchase a duplex. Think about the first step you need to do to move forward. That might be analyzing properties or thinking about what type of property you are looking for. Just think of your next step, complete that task, and move on to the next one.

Run lots of analysis: No matter if you are analyzing properties, estimating repair costs, or comping properties, practice makes perfect. Whatever task you are trying to accomplish, make sure you are a master at it. It is better to do one thing 100 times than 100 things one time. If you are not confident in your analysis skills, reach out to another investor or investor-friendly real estate agent, or contractor to check your numbers. After that, repeat, repeat, repeat.

You’ve done the work, trust it: Once you have analyzed the properties and you feel good about the process, trust your numbers. Everyone is always nervous when doing something big for the first time. However, if you have done all the legwork, and done your analysis, your chances of success go up substantially.

Don’t think of the money as gone but invested: Don't think of your down payment on a property as a withdraw from a different account. The money is still invested, it is just being invested in a different asset class. As long as you have 3-6 months of reserves and the property is cash flowing, it is highly unlikely that you will lose money in a real estate investment. The property will continue to increase in value over time. With real estate investing, patience and time will cure all ales.

Reach out to industry professionals: Reaching out to someone else to help hold you accountable will go a long way. Hopefully, that will be someone you will need in the process like a lender or real estate agent. They will update you, nudge you, and double-check your processes. This was the push I needed to help me purchase my first major investment property.

If you are holding yourself back from making that first or next step in your investing journey, think about what it is that is holding you back. Chances are, if you take the next baby step, practice looking at deals, and find someone who will nudge you in the right direction, you will move forward. Investing for the first time is scary but so is driving a car and now you can do that with your eyes closed (but hopefully not).



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