How to Started in Investing When You’re Overwhelmed with Information

Information overload! That’s the sentiment I hear expressed quite often from newbie investors. There is a HUGE amount of information out there (which is a good thing), but it can be completely overwhelming for someone who’s new to the game (bad thing). I’ve seen investors make extremely poor choices because they believed something they read online, I’ve also seen people unable to make decisions, and I’ve even seen them simply give up and walk away. All because of this feeling of being totally, utterly overwhelmed.

So what is a new investor to do in this age of information? There’s no way they can cover everything out there, but at the same time, they need to learn as much as they can. But how can they keep from becoming overwhelmed? And more importantly, how can they avoid the potential negative outcomes that can result from this information overload?

Read an Overview

Before diving in headfirst, spend some time learning about real estate investment at a basic level. Learn what it means at its core, what the main methods for investment are, and how these differ from one another. If you can get a sort of “overview” education, you’ll be able to narrow down what aspects interest you most, which is the path you’ll ultimately want to head down.

Choose Your Strategy

After you’ve gotten an overview of the different methods, you can choose your strategy. Finding your niche in real estate will allow you to focus on exactly what you need to know and cut out what you don’t need. For instance, if you’re going to use the turnkey strategy, there’s no need to spend time learning about flipping houses because none of that will pertain to you.

Find Reliable Sources

As mentioned, the internet is full of information. The problem is that so much of it is unreliable. The trick is learning to discern which sites are honest and contain good, true information. You need to figure out how separate the good from the bad so you don’t waste valuable time reading stuff on questionable sites. Some good sources I turn to often are Bigger Pockets and Zillow, but there are plenty of others out there. Look for sites that have lots of content that is regularly updated, and includes source information.

Do Your Own Homework

Ever heard the saying, “Trust, but verify”? You should absolutely be doing this with all the cool new stuff you’re learning. It’s YOUR job to make sure that the information you’re absorbing is accurate, because it’s you who will suffer if it’s not and you make poor choices as a result. Talk to other, more experienced investors, run calculations for yourself, and double and triple check to see if the information you’re reading on Site A matches with Sites B, C, and D. If there’s a discrepancy, you’ll need to dig deeper to find the facts.

Make Your Move

Finally, you must act. The best way to cut through the BS and see how it all really works is to make a move. If you start thinking too hard about a property and over-analyzing it into oblivion, you run the risk of being paralyzed into inaction. Take all your nearly learned knowledge and use it to make a smart investment and get started.

It’s easy to get overwhelmed in this industry. The moment you start investigating, you’re bombarded with information. Don’t get bogged down by it to the point you wind up hurting yourself and your investment chances. Use the tips above to learn, grow, and finally become the investor you want to be!