Overcoming Fear in Real Estate Investment

Most investors have experienced fear at one point or another. It’s only natural to be afraid when you’re taking a leap like this because there is significant risk involved. There’s definitely a possibility you could lose money, and that is a scary prospect for anyone.

However, for most investors, overcoming this fear isn’t too big an obstacle. Through careful deliberations, they’re able to determine the risk/reward ratio and make a smart decision, and then they act on that. This isn’t the case for all investors, though. Some become so paralyzed by fear, they cannot take action, even if logically and emotionally they really, really want to.

If this is the place you’re in now, don’t despair. It IS possible to move past the fear and into a mindset of confidence and control.

What’s Driving the Fear?

First, ask yourself where the fear is coming from. Understanding the source of the emotion is the first step to moving past it. Usually, it’s one of three reasons: 1. You can’t find “good” deals, 2. You don’t feel you have enough money saved up, or 3. You don’t feel confident in your market.

The truth is, each of these reasons has a solid counter argument. 1. There ARE good deals out there, even in hot markets. You may simply need to try another method of finding them. 2. Do you really not have enough saved up? Or are you just telling yourself that? If you truly don’t, then give yourself a deadline to reach a figure you’re comfortable with and take steps to boost your savings. Don’t spend unnecessarily, work some overtime, pick up a part-time job. Do what you can to rapidly increase your capital so you can take action. 3. There are other markets besides yours. If yours isn’t performing as well as you’d like, consider another one that is. Remote investing is not only possible, it’s relatively simple when you work with the right people.

I would wager, however, that these fears actually go a bit deeper than these “surface” reasons. My bet is that the real issue you’re struggling with is a failure, and what might happen in the event you don’t succeed.

Which brings me to the next step in the process….

Take it in Stride

Instead of bucking against your fear, learn to accept it. Acknowledge it, work to understand it, and take steps to get more comfortable with it. Once you accept the fact that the fear is there, it loses some of its power over you.

So how do you learn to live with fear? For me, it begins and ends with communication. Once I’ve isolated where a particular concern is rooted, I talk about it to people I know and trust. My family, trusted friends, other investors - all have served as sounding boards at one time or another. Usually, they have some advice to offer, or they have a different perspective that I hadn’t considered. At the very least, they provide moral support. Being able to communicate my fears and talk through them with people I respect and trust is at the core of accepting them and beginning to move past them.

Envision Success & Take Action

I’m a firm believer in the power of positive thinking. Planning a successful future for yourself in real estate investment starts with the belief that you CAN do it. With this guiding your every move, you can develop an actionable plan with achievable milestones and positive outcomes. Sometimes, the greatest antidote to fear is simply acting. Do something, even if it’s something small. Get out of your comfort zone, and tackle at least one thing on your investment “to do” list. You might be surprised to see how easy it was to take that step, and how it will motivate you to take more.