What is the biggest challenge you face starting out?

[Chadd Naugle]

Hoping to start a good discussion on what you think is the biggest challenge you face when starting out in Real Estate investing.  Include your strategy (wholesaling, rehabing, rentals, etc) and your biggest hurdle so far.

[Bill Gulley]

Actually, the biggest hurdle is not getting caught up in all the hype that usually brings new people to real estate. 

There  is a lot of excitement going on in real estate forums, blogs, podcasts and all kinds of strategies being spun for you to just jump into and start making money. You need to stop and think! Don't let geed or desperation overload common sense!

I've said it countless times, learn real estate before you try to learn how to  deal in real estate.

Real property is different than  personal property, real property cannot be replaced and each parcel is unique, which is the basis for value. 

It's also the reason we have different rules, regulations and laws to comply with, a house is not a car or a widget. 

Marketing is important but real estate isn't marketing, it's not a numbers game like selling cars, you need to know your market, identify the belly of the beast because.....that's right, every deal is unique!  

Dealing with  land owners is a serious business, most "investors" starting out have no clue how serious it can be, they simply follow the crowd in the parade behind some guru playing a flute. The music sounds good, but it is more often an unethical  and/or illegal tune. 

First thing to do is "develop a good BS Meter" search my blogs.

You'll never meet anyone in the real estate business that does not have an agenda, understand what that agenda is before you take advice. 

Learn the basics of real estate!

Then, when you know how the industry functions and you have your BS Meter calibrated, then look  at strategies, but learn to be flexible, real estate is about solving problems, economic, social and legal problems. It is not a step by step process, it's a thinking process. 

Take the time to  learn how to be a professional, you absolutely won't be by following most of the guru ploys, like wholesaling as they  teach it. You don't need to lie, deceive or sign bogus sale contracts in your business.

Those that get in a hurry and follow the shortcuts generally fail  quickly.

You ain't gonna learn what you don't want to know (The Grateful Dead)

Failure is an option, it depends on how and where you start out. :)