Justifying the risk of starting

[Graeme Williams]

Hey all,

I'm just starting to seriously look into real estate investing and I'm struggling to get past the initial risk. How do I justify the risk of using what little money I have saved up to buy a house to rent out. I'm only 27 and have plenty of time to gain it back, but I have to look forward towards paying for children and the like.

I would assume I should do any investing I may get into through a private company to shield myself from a lot of the risk? But I'd still be risking a large portion of my wealth. 

How do you justify starting when so many fail? Not only to myself, but also my wife and family?

Thanks

[Thomas S.]

@Graeme Williams

You have very valid concerns and shared with the vast majority of those contemplating investing in real estate. This is the primary reason 95% probably never start.

Most of the population is more than content working and living off of that income throughout their lives. Hopefully saving money for some day retiring. These are the normal people in society.

Those that decide to gamble savings do so with the understanding that they are risking it all by starting. Some start without actually believing there is any risk. Some win, some lose.

To begin you must be a risk taker, you must be highly motivated to take the risk and you must be prepared going in to accept that you could lose it all and you must have it to lose. 

If you do not want it bad enough then the risk is probably too high.  If you do want it bad enough you will educate yourself on every aspect of investing and not only reduce your risk but also reduce your fear. You only invest what you are prepared to lose.

Convincing a reluctant spouse is often the deal breaker.