Hello BP Family,
I've been considering this topic over the past few weeks, as my wife and I have begun the journey of real estate investing. I thought I'd share my perspective with attention to the psychology of this process. In case you're wondering - Yes, I believe I am qualified to speak on this topic, as my day job is as a practicing Psychiatrist :) Okay, so here goes:
1. My first deal: The first "deal" that I did in real estate investing was with myself. I made a mental contract with myself that I was going to take this seriously and treat it like a business (which it is). I had to overcome many limiting beliefs - self doubt, not enough time, not enough money, quizzical looks from friends, a competitive market (Atlanta), "paralysis by analysis" and so on. At the end of the day, I had to remind myself that many of the same traits that make me a successful physician - patience, compassion, discipline, intellectual curiosity, etc. should also translate well to this industry. I know it won't be a perfect transition, and I'm okay with some bumps in the road along the way. I am humble enough to admit what I don't know (a lot), and resourceful enough to find someone who does. And I'm well aware that this journey is a marathon, not a sprint. In the words of a savvy realtor, "Real estate investing is a get rich slow scheme."
2. The property is not our product: I am quickly learning that all of us are in the relationship business. Although we exchange goods and services for the purposes of real estate, the true value is in the connections we form. I can only imagine the number of deals that occur via whispers and handshakes at REIA meetings, inboxes on Bigger Pockets, or the text from a realtor to whom you sent a "thank you" card. I'm hopeful that this business will reward decency and professionalism. My aim is to be a decent human being first, and allow financial gain to be the byproduct. None of us is exempt from the Law of Attraction - we attract who and what we are. "You will get all you want in life, if you help enough other people get what they want." -Zig Ziglar.
3. Start networking....yesterday: I can't emphasize enough how helpful it's been for me to get from behind the computer screen. Now don't get me wrong - there is a WEALTH of information online: YouTube videos, BP Forums, Zillow, Trulia (particularly the crime map feature), articles galore. And it's all fantastic and very necessary in order to get your footing in this business. However, I have gotten just as much value from driving through neighborhoods in my target market (and actually smiling and saying hello to the people that live there), going to local REIA meetings, phone calls with other investors, and coffee dates with realtors. I've come to realize that people who are experienced in this industry have plenty of knowledge and "trade secrets" that they're willing to share if you just ask. And my goal is not just to take from them - I want to be able to add value to their business as well. Maybe I have a colleague who is looking to buy a home (introduction to a realtor), or a friend who is looking for alternatives to his 401K (introduction to a self-directed IRA manager), and so on. I am a firm believer that our network = our net worth.
For those of you who made it this far, thanks for humoring me with this post! I'd love your feedback and stories on what psychological hurdles you had to overcome while starting out. And if anyone is actively investing in the Atlanta area, I'd love to connect as well!
Cheers BP,
-Adam
