I have had so many people reach out to me about the things that hinder them from being successful as real estate investors. Out of all of them, the most common issue I hear is paralysis by analysis. So many people spend so much time learning, studying and reading that they end up getting overwhelmed with information and ultimately don’t take action.
So, how do you avoid this from happening?
We live in a world of information, so much so that within a given day you can hear hundreds of contradicting opinions—all coming from educated, credentialed experts. Whom do you trust? Whose view is the correct one?
Today, it’s my goal for us to unpack this and help you to finally get to the place where you can actually make progress toward your goals.
The 20 Best Books for Aspiring Real Estate Investors!
Here at BiggerPockets, we believe that self-education is one of the most critical parts of long-term success, in business and in life, of course. This list, compiled by the real estate experts at BiggerPockets, contains 20 of the best books to help you jumpstart your real estate career.
Here Are the 4 Ways Real Estate Investors Can Overcome Paralysis by Analysis
Below are the top four strategies I suggest to people who are struggling with paralysis by analysis. If you do any one of these steps, it will help you stop being overwhelmed and actually take action.
1. Intentionally Set Limits on Information Consumption
You want to know something funny? A lot of the more successful real estate investors that I know, hardly ever read anything. They simply don’t like it! That may fly in the face of conventional wisdom, but the fact remains: there are a lot of successful business people who don’t read, or have a high level of formal education.
Now, I’m not saying you shouldn’t read or learn and grow (I myself have it as a goal to read two books a month), but my point is that you don’t need to read EVERYTHING! Be choosy on what you read and don’t read. I am very choosy when selecting the two books I read every month. I read only books that have been referred to me and that will help me learn and grow personally and in business. Be very intentional about the information you consume. Knowing too much will hinder you, especially if you learn too much of the wrong information.
Your real estate investing strategy doesn’t have to be complicated. Honestly, it could be said that all you need to do is simply find what works, do it and then rinse and repeat. So many of us try to find the most “cutting-edge” and “best” strategy of all time, when what we need to be about is just doing something that works for us, and then staying faithful to the process.
You don’t need to have the absolute best strategy down before you start taking action. You just need to know the minimal amount in order for you take your next step. Is it better to make a 35% return than a 12% return? Yes, absolutely. But, is 12% made consistently over time better than not making anything at all? Yes, absolutely. Consistent returns over time is how wealth is built.
2. Progressive Learning
That leads me to the next strategy. Please don’t misunderstand, I’m not saying for you to aimlessly just take action. You do need to learn, but you only need to learn enough for your next action step. Learn progressively. For example, if I was starting out, I would first focus on learning what the most common real estate strategies are. I would then, after having a general sense, choose which strategy I’d want to try out.
Let’s say, for our example, I choose wholesaling. After I choose, that’s it! I don’t focus on learning the ins and outs of anything else. I’ve chosen wholesaling so that’s all I focus on -I intentionally turn off everything else outside of wholesaling (at least for a while).
I would then turn my attention toward learning what common rules of thumbs are out there for analyzing deals, then I would start looking for deals. Again, there are a lot of opinions out there on the “best” way to find deals, and the “best” way to analyze deals. Just pick one—put it into practice and see how it plays out. Then if it works keep doing it; if it doesn’t, go figure out why and learn what does work. Learn as you go and as needed.
3. Find Another Investor You Can Work With
You’ve probably heard it time and time again, but the best way to grow as a real estate investor is to partner up with someone who is already successfully doing it. Whether the dynamic between you two is strictly that they are the buyer of your deals (in exchange for feedback on how well you’ve analyzed things), or you actually go and work for their company, finding someone who can help coach you is the best way to learn while still progressing.
4. Set a Daily Mission
I wanted to save the best way to overcome paralysis by analysis for last. For me, the best strategy I know to get stuff done is a concept I like to call the “Daily Mission”.
Every day, I give myself a singular task that I set as my top priority. I don’t let the sun go down until that one thing is done. If you set yourself a goal a day, I promise you, not taking action just can’t happen. You’ll find yourself moving forward, even if it’s little-by-little!
How have you overcome your paralysis by analysis? Please share your tips below.