QOTW: How to help a new investor stuck in “Analysis paralysis?

[Alicia Marks]

New year, new challenges is our focus for our Question of The Week!

We've all been there, excited about a new adventure, but scared to take the plunge. With the new year, lots of people are looking at starting their real estate journey, but they are trapped by "analysis paralysis". It makes sense. Not feeling like you know enough, imposter syndrome, or the potential financial risk all come into play. Let's help out our newbies or even those who are "leveling up"! How did you get over the analysis hurdle? Did you find out more that you wish you would have known? Did the move work out, or were you able to change your approach to make it successful? Let's show some encouragement that getting started can be scary, but worth the journey!

[Brad Jacobson]

Great question @Alicia Marks! I have two immediate thoughts:

1. Most new investors have an amazing opportunity to get into the real estate game by house-hacking.  The best part of house-hacking is that any deal is better than no deal.  If you're able to divide your housing costs at all, it's better than not doing it 100% of the time.  Even if you can't find your perfect house-hack, buy one ASAP and start building that equity and savings rate.

2. In my local market (UT), analysis tools like the "1% rule" are impossible to achieve.  Nevertheless, I continued to buy properties that didn't meet the standard criteria and found that all I had to do was invest from a position of strength (with good reserves) and sit on the properties for a year or two before they became incredible investments.  Properties I bought prior have up to $800/door more cashflow now than when I bought them.  They weren't money makers at first but have turned into the best financial decisions I've ever made.  

In other words, don't wait to buy real estate, buy real estate and wait!

Good luck to all!