Replacing fear with knowledge

[Jason Ridout]

I've owned properties for many years, but only recently have I started to invest in multiple properties at one time. I used to be afraid of the concept. The large amount of debt, managing properties, fearing a major crash in the market. All the fears that are common amongst new investors.

A friend of mine started buying up houses a few years ago. His plan was 10 houses in 10 years. He now has 10 houses, but it's only been 4 years. I thought he was crazy. I thought it was an extreme gamble, and that he could lose everything. The concept of a property making money made sense to me, but the idea of leveraging yourself so heavily seemed like a recipe for disaster. 

Every time I talked to my friend, I learned a little more. He referred me here, where I learned more. I read a few books about investing in real estate, and listened to podcasts. Every time I learned something, my friend seemed a little less crazy. I eventually bought a rental house near some of his rental houses, and then bought another. Again, I learned. I learned the true costs to buy, renovate, and insure a house. I learned how to deal with contractors, and property managers. I learned how to pick a house, and a neighbourhood. I saw the money start returning, as the houses became occupied with renters.

95% of people I knew, thought I was crazy to borrow and invest in rental houses, especially 10 hours from my home. But I understood what I was doing better than 95% of the people I knew. I then realized, my fear, had been replaced with knowledge. I had learned, just as my friend had. He was no longer the crazy one. He made perfect sense. His numbers all added up. Everything he said could be researched and proven. The people that deemed my friend crazy didn't have numbers or facts to back up their fear of investing. In reality, they knew little or nothing about real estate.

So who are you going to trust? Someone with tangible facts, and on the ground experience, with numbers and evidence to back up what they're saying, or someone that "has a hunch"?

What I learned is that most nay sayers, know very little about real estate. Surround yourself with people that have done it, and you'll find a lot of positive people that will tell you that you're on the right track. It gets draining when everyone tells you that what you are doing is crazy, and that you're going to fail and lose everything. Don't take advice from people that know less than you. Real estate is very complicated, and you can't learn it overnight. That's probably why so many people are afraid of it. It's good to be afraid of something you don't understand, but it's better to replace that fear with knowledge.