You’ve made the decision to take more control over you financial health by investing in real estate. And just like the decision to take care of your physical and mental health, taking care of your finances seems like a no-brainer.
So why is buying your first investment property wrought with fear, and how do you overcome it?
Dealing with skepticism
Perhaps your fear is fueled by skepticism. The good news is that skepticism is a healthy trait in real estate investing, because without it, you might be drawn into a deal that is not in your best interest. But problems may arise when your skepticism becomes unhealthy and leads to inaction, which leaves you no better off today than you were yesterday.
To prevent inaction from setting in, check out these 7 Strategies for Conquering Skepticism. Below is my take on it:
- Be educated – get a mentor, join a network of likeminded people, and realize that investing is not something that should be done without learning how to invest in a strategic way
- Get out of your comfort zone – when you feel uncomfortable, it actually means that you’re growing. Everything that you currently have is within your comfort zone, therefore, in order to get things outside of your comfort zone, you’ll need to get uncomfortable.
- Does it cash flow? – real estate investing in unemotional. If the rent is higher than all the related expenses and mortgage payment, that means that property is making money for you. The property may look good, but until you do the numbers, you never know if it’s a ‘business’ or a ‘liability’.
- Follow your gut (once you’ve done your due diligence and weighed the risks unemotionally) Remember that failure is inevitable. Even long-time investors have had some deals go sour. But they have learned from their mistakes and become more successful because of the experience.
Back to the basics
But what if you find yourself stuck with fear, skepticism and inaction? What then?
- Go back to the basics and start with WHY?
Why did you want to get into real estate investing in the first place? Why did you want more control over your financial freedom in the first place? What was the dream that fueled your desire to begin learning, preparing, and networking to get you to this point? Keep that deep seated reason front and center, and then…
- Take daily action.
The best thing to do is to move forward. What’s one thing you can do today that will get you further ahead tomorrow? Then repeat the process tomorrow. Do one thing tomorrow that will get you further ahead the next day, and in two days, you will have accomplished two things that get you closer to your goal than you are today. And remember that sitting on the sidelines is NEVER going to make you money.