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Updated about 5 years ago on . Most recent reply

User Stats

9
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3
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David Rohrer
  • Rental Property Investor
  • Indianapolis, IN
3
Votes |
9
Posts

New Investor - Intimidated

David Rohrer
  • Rental Property Investor
  • Indianapolis, IN
Posted

Hi everyone! I am excited to start this journey into real estate investing, and have begun the process passionately, already doing tons of listening and research and just talked to a lender yesterday.

Here's the thing: I'm not risk-averse. I seek risk and I'm 25, so I know now is the time to take risks. Even though I will do my due diligence on any property a buy, with a conventional loan on a multi-family rental being ideally 25% (about $60k in my area - Indianapolis), I find myself feeling intimidated at the idea of sinking a little over half my cash into something that is technically a risk.

Advise for a cautious but excited new Investor?

Most Popular Reply

User Stats

40
Posts
17
Votes
Curt Neider
  • Lender
  • Salt Lake City, UT
17
Votes |
40
Posts
Curt Neider
  • Lender
  • Salt Lake City, UT
Replied

I love the idea that entrepreneurs and investors are risk takers or mavericks in some way. 

THEY ARE NOT! 

Research shows that the best investors and entrepreneurs are not risk takers at all but are actually very good at doing due diligence. Research the market, research your funding options, have an exit strategy, have a strategy for what you will do if you CAN'T EXIT, etc. 

This business isn't about gambling or taking big risks. That's for dummies. 

It's about getting answers to all of your questions and then being comfortable with the deal. There will always be some risks. What if the cartel moves into your property? What if there is meth and dead bodies stored in the walls? What if the foundation is paper mache? Don't overwhelm yourself and also pick good partners. (Agents, contractors, lenders, etc.) 

If you are specifically worried about your cash, then have a bullet proof plan of how to acquire and get your cash out ASAP. (Wherever you have your cash now is also technically a risk anyways.) Easy enough. 

You can do it. Good luck! 

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