You've been thinking about real estate investing for a while now.
You might have bought a bunch of books, done a ton of research online, and maybe even gone to some Meetups or weekend seminars.
But, you still haven't bought anything. Even worse, you still haven't even been making any offers.
Why is that?
It might feel like you need to take 5 "first steps." That's how I felt when I got started. But, you can only take ONE "first step." That overwhelming feeling can stop you dead in your tracks.
Maybe you're saying that real estate is too expensive or the market is too hot.
You haven't started saving because it's too hard. You just don't have the money.
That's just an excuse and you know it.
Every business or investment has some obstacles to overcome. These are all legitimate obstacles, but if it's what's holding you back, then it's just an excuse.
It's more important to ask HOW can we buy property given the current circumstances, rather than throw up our hands and say it's too hard.
So, the real question is HOW do we get started in real estate, as a complete newbie with no properties.
Identify the Source
Generally, excuses are born of fear.
Your fear of losing money, looking bad, making a poor decision, etc.
If you look a little deeper, your fears are born because of something you lack.
You're afraid of losing money because you aren't sure if you know how to run the numbers.
Perhaps you have fear of looking bad because you don't know what is a "good" or "bad" investment.
Or, you aren't sure if it's a good or bad decision because you don't have a solid plan.
There is a reason you haven't started yet. So, the first step is to identify exactly what is holding you back then tackle that problem. (I want you to comment below the #1 thing holding you back).
Generally, the issue is rooted in one of the following core issues.
I'm Not Confident With My Numbers
I get it, this one is tough. The calculations are the most complicated part because there are so many variables. There is a lot of room for error.
The reason why you are afraid is because you haven't mastered the art and science of deal analysis.
Once you have, you'll be very confident in your numbers.
There is no easy solution other than to read a lot, practice a lot, and use good spreadsheets.
It's way too much to get into in one blog post (I have a 100+ page book coming out on it, so, you can tell it's a bit much to write about here), but if you're concerned about it, you haven't mastered it yet.
I Can't Find a Good Deal
This is always a challenge, regardless if the market is up, down, or sideways because we're always looking for the best deals regardless of market conditions.
If the average deal earns 12%, we want 15 or 18%. If the average deal earns 5%, then we want 10%.
We're always looking for that top 5%.
So, even if the market crashed and everything is selling for 50% of it's value, we aren't going around buying everything.
Instead, we're still being selective and choosing the best deals available.
You might have to put more effort into finding great deals when the market is hot because undoubtedly there is more competition. But, it never becomes easy.
I'm Afraid I'll Make a Mistake
No reason to be afraid of this, because it will happen, no matter how hard you try to avoid it.
Instead, you should be focused on creating a great plan in order to mitigate any risks.
That's the key - to mitigate risks, not avoid them entirely.
With a solid business plan in place, you'll be able to plan for contingency and have the budget you need to overcome those problems.
I Don't Have the Money I Need
Let's put this one to rest right now. No one ever has the money they need for the deal they want to do.
If you have $100,000, you'll find something that needs $150k. If you have $1 million, you'll find something that needs $1.3 million. As an investor, you will always be in a state of needing money.
So, you need to get over this and start finding ways to get more money to invest with.
I Don't Want to Deal With Bad Tenants
I don't think anyone wakes up looking forward to dealing with bad tenants. I'm sure there has got to be some masochist that loves it, but for 99.9% of people, this is true.
The key is to avoid them in the first place.
I'd rather leave an apartment vacant than take on a bad tenant. You need to have the same mindset.
The Solution to Taking Your First Step?
The most important reason why you need to start investing is to overcome your fears. Because of your fears, you create obstacles.
Start by creating a solid plan, knowing your numbers inside and out, and building systems and processes to help you avoid problems.
It sounds hard, you'll realize it's easy once you actually get started.
Comment below the #1 thing holding you back.