Common Investing Fears and the Secrets to Overcome Them

Let’s face it. Taking that first leap into the world of real estate investing is just a bit nerve-racking. I’ll admit, Tarek and I were pretty nervous when we started out as we knew very little about the investing side of real estate. All we knew was that we were in desperate need of a change, and flipping was the perfect route for us to take. So before we could even turn back, we took the plunge and flipped our first house. We’ve never looked back!

I’ve witnessed hundreds of people who have wanted to start a career in real estate investing with the hopes of transforming their lives and following their dreams, yet many of them quickly decide they don’t want to stick with it for the long run. Maybe it’s the risk or the uncertainty that causes people to hesitate, but many people tend to second guess their decision after (and often before) they start flipping houses.

Whether you have fear of the unknown or fear of failure, fear is one of those things that can hold you back from achieving the success that you deserve. Follow these secrets and learn to overcome the fears that are preventing you from obtaining financial freedom.

Fear of Losing Money

The most common fear among real estate investors is the fear of losing money. This fear is one of the main reasons that people don’t ever end up buying their first property. People become so afraid of making a mistake and losing their money that they never get started. The thing that most people don’t realize is that in order to make money, they must be willing to invest money.

While it is possible to lose money from real estate investing, it’s less likely to happen if you are careful and take the time to plan. When you are just starting out, don’t be afraid to flip homes that are smaller or need fewer repairs. You probably won’t make as much profit off of these homes, but easing yourself into investing will help you become more comfortable with the idea. If you are overwhelmed with investing a large chunk of money at once, say $50,000, try $5,000 instead. Don’t be afraid to also find other sources, such as a partner, to help you fund your projects.

You don’t have to invest a ton of money in the beginning in order to be successful. Taking baby steps is the best thing you can do when starting out.

Fear of the Unknown

Fear of the unknown is something that many hopeful investors struggle with. Not knowing what is going to happen when you start investing is rather stressful, but preparing yourself with the facts before you begin can help to ease the stress. Before you even start investing, I recommend that you learn everything you can about real estate investing. Doing just this one simple thing can dissolve many irrational fears related to investing.

I’ve found that more often than not, many fears stem from a lack of knowledge or information. Take some time to gain knowledge about real estate investing by attending workshops, reading blogs and books, watching videos, etc. While learning about real estate investing won’t necessarily help you foresee everything that can go wrong, it will help you become more confident with investing.

Fear of Starting at the Wrong Time

If you worry that it’s not the right time to start real estate investing, you’ll never start! There’s never a right or wrong time, which is why you should stop waiting! Once you begin investing in real estate, you’ll find that it’s always the right time to start. There are literally hundreds of properties on the market as you are reading this post, you just have to be willing to search for them. Even if you don’t happen to see any good deals on the market today, who’s to say there won’t be two (or ten) that appear next month? Next week? Or tomorrow? If you take that first step today, you’ll automatically be leaps and bounds ahead of those who are just “thinking” about starting.

By following these secrets, you’ll become more comfortable and confident with real estate investing. Your fears will become a thing of the past before you know it!

For more information about real estate investing, visit Real Estate Elevated's BiggerPockets blog.