Six easy steps to overcoming analysis paralysis

Ironically, the people struggling to get started in real estate are often among the most educated, passionate and detail-oriented people I have ever met. Engineers and people working in the IT industry seem to be particularly vulnerable to it.

Some of the main factors that cause analysis paralysis include the following:

• - Information overload
• - Risk avoidance
• - Computer time (too much)
• - Field time (not enough)

Remember that your first investment is usually the most difficult in terms of the emotional courage needed.

Social factors also play a much bigger role in analysis paralysis than people realize. Keeping other people’s fears from infecting your drive to invest can be a challenge, particularly when they come from close friends and family members who have your best interests at heart.

In Gary Kellers great Millionaire Real Estate Investor book, there is a large section at the back with mini biographies of different people. One of the biographies that stuck with me was the story of a young woman, who was told by her father that "she was too young" when she approached him for a loan for a down payment on her first rental property. To her great credit, this young lady took it in stride and simply said, "I know Dad, I just wanted to give you first refusal," before going ahead and finding the funds elsewhere. Fast-forward 10 years and she now owns five single-family homes, two duplexes, six condos and an eighteen-unit apartment building.

Now that you’ve read that little piece of inspiration, you can use a simple step-by-step process to overcome analysis paralysis:

Step 1: Decide on a market to invest in
Step 2: Decide on a team to work with
Step 3: Decide on a property type and a price point
Step 4: Decide on a property manager
Step 5: Make a commitment to purchase within a specific time frame
Step 6: Analyze individual houses

Did you notice that I put looking at individual houses last on the list? Researching random houses in multiple markets from multiple sellers is a great way to overload yourself with unnecessary information.

Once you get started and gain some momentum, you will be amazed at what you can achieve in a short span of time. My advice is to align yourself with people who are doing something similar, keep moving forward towards a specific goal, and don’t overreact every time you encounter bumps on the road — you´ll get used to them.

Happy investing!