Biggest Fears for New Real Estate Investors
Everyone wants a financially secure future, but not many people know where to begin, and it can be scary to dive in by yourself. Even though you might not know where to start, it isn’t as daunting as you might think, especially if you have help and are aware of some common things that might discourage you as a new investor.
Funds: Many people fear starting real estate investing because they don’t have enough funds. There are several reasons why this is a completely irrational fear, the first being the return that you can get from investing in real estate. The money that you put in will get you put in will return to you, only multiplied, if you have a good mentor or teacher. This profit can then be reinvested, making you more and more money. The ability to raise funds can also help soothe concerns about the financial side of real estate. Gathering enough capital to start investing in real estate and do it comfortably is easier than you might think. Jaime goes over several simple fundraising strategies in his Step-by-Step Real Estate Investing Guide. This guide brings us to another reason not to worry about funds, cash flow. Calculating the cash flow you would receive from a property is an important part of making as much money as possible. Jaime’s guide delivers a comprehensive explanation of how to accurately calculate the profit you will receive from your properties and select the best properties that will provide the best return.
The Perfect Deal: Many new investors get strung up waiting for “the perfect deal.” Whether the property has a defect, it’s not in the area you want or some other factor that makes you second-guess yourself. The fact is, not every purchase is going to be perfect, but there are still ways to make smart purchases. For example, strategies for narrowing down potential properties you want to pursue are extremely important to decide what you buy. Also, it is important to have a “master list” before going to the auction so you don’t bid on the wrong property or bid too much. Lastly, you must actually win the bid, which can be difficult in high-pressure, competitive settings. All these topics are covered in Jaime’s Guide to Investing and can be an invaluable asset in your pursuit of succeeding in real estate investing.
Experience: The last major concern many new investors have is their lack of experience. This fear stems from a lack of self-confidence, which can be easily fixed in a few different ways. The first, and probably hardest, way to overcome this fear is to realize that everybody starts from nothing. No one begins investing with experience; everyone must learn while stumbling through their first investment. Another better way to get over the lack of experience is to lean on the experience of a seasoned real estate investor. Talking through your concerns or thoughts about your next investment with somebody who has been in the industry for over 20 years can skyrocket your chances of success and turn a profit.
Ultimately, it is important to realize that it may be scary to start investing in real estate, but it can be a life-changing decision. As long as you do it correctly, with the advice and oversight of a mentor or coach, it will be extremely profitable, make you independent of your day job, and help you retire decades earlier than you ever thought possible.
By: Tyler Kirk
