Why are people scared of real estate

[Anthony Cecchini]

Hey guys, I have something I have been pondering about for a while. It seems that many people are scared to take the dive into real estate due to the risk. Now I know that this has been discussed many times over, but I find it very intriguing that people will spend 100,000 on a college degree, but will not spend even half of that on a first real estate investment/ learning. To be honest I wouldnt spend that much on the learning part since everything we need is here at bigger pockets (the 15 bucks a month for pro is def worth it) but concerning a real estate investment.... this is a no brainer, as long as the numbers work.

I am leaning toward the fact that college gives a peace of paper stating that somebody has a degree as being what makes people lean toward dishing out the money for college.

For example, I know people where I went to school that paid 50K+ for a degree in music education.... yes... music education.... without a full ride.

Long story short, is just amazes me that lengths people will go to achieve a simple piece of paper, even with a bleak job outlook ahead of them. That peace of paper must have some amazing lure factor wrapped into it obviously.

[James Vermillion]

Going to college is "the thing you should do" and is widely accepted as the next step after high school. Almost every parent wants their kid to go to college, it is the norm in our society. Due to this, people do not see spending money on college as a risk, but more as a self-improvement step in life. After college, you are supposed to get a job using your new degree, and pay back any debt you incur.

Any deviation from the plan is seen as risky. Starting a business, investing funds (in real estate or other instruments), moving overseas, etc. Also, I see investing in real estate as generally more risky for most people. Almost anyone can make it through college with very little effort (what a sad state of higher education we have), but real estate investing requires real work (which scares the hell out of most people).

In real estate you have to make real decions, which directly impacts your financial picture. If you go to college and get a job, you likely have a boss telling you what to do, and if you make a mistake, you will not lose a ton of money (in most cases) and can go get another job.