First Investment? How to Keep Your Stress Level Low When You’re Just S

Real estate investing is not for the faint of heart. There’s a lot of work, the competition is fierce, and unfortunately, you don’t get rich quick. This can make for a pretty stressful experience for some investors, especially those who are new to the game and are still trying to learn the ropes. I’ve seen far too many people jump into property investment, only to pull out a few months later because they become overwhelmed by stress. However, if you can keep the worry in check and make smart decisions, you are in for a rewarding experience. Here are my go-to tips for reducing stress so you can see long-term financial success.

Educate Yourself

Knowledge is power, and this couldn’t be more true than in real estate. The more background knowledge you gain before starting, the better off you’ll be. This includes learning about your target market, how to run the numbers, and strategies for acquiring and maintaining investments. Remember that the best investors are those who view themselves as lifelong students, too. Even after you’ve been at it for a few years and feel like you have a good idea of how it works, there is still more to learn.

Practice Patience

Patience is a virtue, both in life and in real estate investment. It’s not often that an amazing deal is going to fall into your lap, or that you’re going to land something awesome as soon as you start looking. It takes time to find the property that’s right for you, and if you act impatiently or impulsively, you might do more harm than good. You need to practice zen-level patience in many aspects associated with investment as well. Like the investments themselves, profits can take a while to materialize, and don’t even get me started on the amount of patience you’ll need when working with contractors or tenants (unless you’re looking at turnkey properties...hint, hint).

Know Your Financing Options

Most investors don’t have piles of cash laying around with which to purchase properties. In these cases, they need to obtain financing, and knowing your options ahead of time can greatly reduce purchase anxiety. You can look at traditional mortgages or other bank-provided loans, entering into a partnership, or scouting out hard money lenders. Get familiar with the options available to you so you can find the one that works best and results in the least amount of stress.

Use a Property Manager

Using a property management group to maintain your investment is one of the biggest steps you can take toward reducing stress. With a great manager, you don’t have to worry about the nagging, everyday tasks that will come with your investment. Marketing the property, selecting tenants, collecting rent, dealing with maintenance issues, and handling evictions are just a few of the things a property manager will take off your plate, and the fee you’ll pay is nominal compared to the stress you’ll avoid.

Surround Yourself with Great People

Being successful in real estate is largely about who you know, and that goes for stress reduction too. Surrounding yourself with awesome, positive people can go a long way in helping alleviate some of the pressure you may feel starting out. You can get advice and referrals, or even just a sympathetic ear from someone who’s been there before. By the same token, it pays to connect with a great mentor who is willing to share their knowledge and offer their support.

Don’t let stress be the reason you stop - or never even start - investing. Be proactive and take the steps above to avoid and reduce stress, and remember that we’ve all been there. We got through those uncertain times in the beginning, and so can you.