Advice on overcoming the fear of purchasing your first Property?

Question

Hello! I'm currently an aspiring Real Estate Investor who has been learning as much as he could about how RE Investing works. So far, I would say, that I am fairly confident on the basics, though I still have a lot more work and learning to do since there is a lot of material that needs to be covered. I think so far in what I have learned, I've realized that there are certain things that simply can't be learned through research, no matter to what extent, until you start actually investing and taking that first step. I do, however, find myself with a fear related to buying your first property, since I believe it's a choice that can ultimately change your life (there is a lot that can happen, both good and bad). Is there any advice on overcoming that fear, and ultimately taking that decision?

All in all, though I am not currently ready to start investing just yet, I am definitely excited and eager to continue learning more!

Ola Dantis · Answer

Honestly, the best way to overcome the fear is to face it head-on by actually investing.

Now, I am totally aware you might be in that position financially, which is understandable.

From a psychological angle, the best way to do it is to start actually do it. If you need to start saving for a downpayment you can start that now. You can also explore strategies in which you don't require large sums of cash to get started.

At the end of the day, fear = false evidence appearing real.

Damon Cameron Jr · Answer

Write down 5 strong reasons for why you want to invest in Real Estate and/or achieve Financial Independence. If you have strong enough reasons ( A parent, child, freedom, travel, etc.) the fear dies. Focus on finding your "why" and write it down and put it next to your desk or bed so every time that "fear" comes in your head you look at your reasons. Literally there is no such thing as good or bad. Everything is a learning experience so seek failure and mistakes because you are learning and growing into the person you have to be to achieve your goals!

Antonio Cucciniello · Answer

@Joseph Pedraza Its challenging for sure. The first thing I would do is make sure you have a goal and you stick to a strategy. When you bounce back and forth between multiple strategies, you overwhelm yourself.This is where I would start!

Allen Williams · Answer

@Joseph Pedraza I would absolutely remember some of the key benefits of real estate. They include control, appreciation through time which involves increasing rents, and it is a get rich slow game at the end of the day. I would first surround myself with professionals that have a great track record to give you guidance. And then I would ask them/do your own analysis on what is likely to happen and worst case scenario (of course must keep it realistic and not scare yourself). And then if you are okay with that simply take the leap. Real estate as they say is the most forgiving asset class out there. You do not need a homerun on your first deal. A base hit is a huge win!! Then when you become a better investor over time you will consistently knock triples and home runs all day. It is a process and once you do your due dilligence stop second guessing and start acting. That is exactly how I was able to take a leap!I hope this helps :)

Peter Mckernan · Answer

@Joseph Pedraza Congrats on getting into investing and pushing towards the path of financial freedom from income properties. I would suggest a couple things to get past your fears.

You should write down your goals, check to see what you need to accomplish those investing goals, and on another page write down the fears that you are experiencing. Take the number one goal that will outweigh that number one fear and use that as a catalyst to get you to your goals. This process can create a focus on what the biggest goal is and how to get to that goal.

Justin Hoggatt · Answer

@Joseph Pedraza, I'm curious, what is your fear? Why are you currently not ready? What is that you need to overcome to get started? I think addressing those fears and understanding what hurdle you need to cross is important. The one bit of advice I've given to people over the years is to simply take action. There is a lot to gain from real estate and I've heard many horror stories of people spending $10's of thousands of dollars on "training" to have never actually gone anywhere. The best way to do anything is to actually do it and gain experience.

There are a lot of paths in real estate and that's the exciting part to me. There is certainly never a dull moment and always something to learn or another path to take. I have changed paths a few times, and I enjoy every one and every one has provided me rewards. Just know that picking one doesn't get you stuck in that and getting started on the path you pick is simply the best advice I can give. You'll pick up the tips, tricks, and knowledge along the way that will make you successful.

Another bit of advice is to find someone that might help you with your questions. Get started with your local real estate investor groups and associations. Never be afraid to ask questions - there will be many.

Good Luck!

Aaron Smith · Answer

@Joseph Pedraza

Take daily action. Even if it's a small step, do something every day that moves you toward getting that first deal. When it comes time to do something outside your comfort zone, recognize that you are breaking through a barrier and make the conscious decision to run through it.

After a lot of small, daily steps you will find yourself negotiating a contract, then looking for the next one.

Jon Kelly · Answer

@Joseph Pedraza you’ll be glad to know the fear of buying your first property goes away after you buy your first property. Then you can laugh at yourself for letting fear limit your actions

Joseph Pedraza · Answer

@Ola Dantis Yeah that is true. Thank you!

Nicholas L. · Answer

@Joseph Pedraza there are different rules of thumb, a common one is 6 months of living expenses.

Advice on overcoming the fear of purchasing your first Property?

Advice on overcoming the fear of purchasing your first Property?

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