Analysis paralysis (JUST DO IT) ?

Question

Any advice on analysis paralysis?I’ve been having it and idk why i feel so lost all of a sudden. Its getting frustrating, feels like every time I’m ready to make a move i forget what I’ve learned. Can anyone that has over come this give me some advice on what worked for you?

Joe Splitrock · Answer

@Clayton Sinclair my first deal, I knew nothing about real estate. I think it is better to do a mediocre fist deal than no first deal at all. I say this for three reasons:1. Most newbies never do any deal. It is better to try and fail, then never try.2. Even an average deal will teach you a ton. You only truly learn by jumping in and doing it.3. Real estate appreciates over time, so even an average deal can turn out ok. There is tax benefits, rent appreciation and property appreciation.Just make sure you buy in a good location. Sometimes people hunt out a good deal and mistake a low price for a good deal. Real estate is all about location. Properties in good location rent fast at good prices and they appreciate over time.Keep in mind that before you do a deal, you fear what might happen. After you buy a property, no matter what happens, you find a way to make it work. It is like the old saying of "burning all bridges behind you". Once you commit, you will force yourself to succeed. You have this amazing BP community to help you along the way. Don't let fear hold you back!

Account Closed · Answer

I guess it depends on what analysis you're doing since this advice may not work in certain contexts, but Bezos has said a couple things I make use of in my day to day;1) Reversible vs Irreversible: If a decision is easily reversible you should make a decision fast and without perfect information. If it's irreversible, take plenty of time to analyze and understand the issue as thoroughly as possible. 2) 70 Percent Rule: "Most decisions should probably be made with somewhere around 70 percent of the information you wish you had. If you wait for 90 percent, in most cases, you're probably being slow."Setting goals can also help. If the goal is something like making an offer on a property, make a checklist of your criteria for what makes a good deal and as long as the minimum criteria are met, move ahead. It helps to remove subjectivity with pure data. I like making spreadsheets with a list of weighted pro's and con's.Hope that helps!

Brian G. · Answer

@Clayton Sinclair I have zero experience wholesaling but there are many others on BP who do have experience. I would try to find them and reach out for guidance, etc. and or post your questions if you can not find the answers.

Clayton Sinclair · Answer

@Brian GerlachI am on #2 and #3. I’m starting in wholesaling i just don’t know whats holding me back. I have a bunch of free time today at home, my focus for the next 6 hours is getting on the phone and cold calling today!

Clayton Sinclair · Answer

@Michael BennettYes i would definitely love to talk to someone personally about it. Thank you, ill shoot you a pm

Clayton Sinclair · Answer

@Adam KruzeLove this thank you!

Brian G. · Answer

@Clayton Sinclair I felt the same way until I found the right strategy and market to meet our investing goals. You need:1) Clear Goals2) The right strategy to meet those goals3) The right market to implement that strategy4) When #1-#3 come together Just Do It Figuring out #1-#3 may take time. #4 is all about execution. Do you know the answers to #1, #2 and #3 above? If so, what are they?

Michael Bennett · Answer

Hey Clayton, what's up man? I know the feeling. You gotta go back to your "why". Why do you want to invest in real estate? What is your short term and long term goal? Once you know why you're doing this you can start to figure out why you are overthinking it. Without knowing specifics of your situation and the properties you are analyzing it's tough to give a specific answer. But I definitely know how you feel and wouldn't mind talking through it with you.

Joe Villeneuve · Answer

From my years of experience...and experiences, I have come to the conclusion that analysis paralysis is usually caused by one of two things:1 - Analysis doesn't show the desired results, and the REI keeps analyzing to find a property that does. That's not a bad thing...that's what you are supposed to do.2 - Analysis shows ??????? and the REI isn't sure what the analysis means. That's a bad thing. That means the REI shouldn't be a REI...until they can turn #2 into #1.

Cody Barna · Answer

I think most of us can relate to that feeling during some part of our RE investing journey. I like to compare my current situation to the worst outcome possible if I purchase an average deal, in most cases you'll end up being in a much better place financially in the long run regardless of risks involved. I believe it's more risky to remain stagnant and continually make excuses about why you can't find the perfect property. At the end of the day breaking even on a house hack is a lot better than paying thousands in rent every months, that's just my opinion.