Do you find yourself fearful of getting started in real estate investing? Are you unable to take action because of uncertainty and doubt? You’re not alone. Here are 4 easy steps to moving beyond the fear of investing in real estate.
1. Group the Real Estate Investing Process into Bigger Manageable Pieces
One reason why you might be fearful and uncertain about moving forward as a real estate investor is that you feel overwhelmed with all the detail and unknowns.
When you start something new, it often helps to take the entire process and group it into a few (3 or 4 big pieces). The idea is that a 3 or 4 step process you can understand and grasp in one thought. A 19 step process is overwhelming and when you are overwhelmed you tend to freeze up.
I am not suggesting you oversimplify and not look at the details. I am suggesting that you group and then sub-group each group adding more detail as you get further into the process.
For example, maybe you break down investing into 4 parts:
a. Finding deals
b. Acquiring the property
c. Fixing the property
d. Selling the property
Then, go back through and break “Finding Deals” into 3 or 4 main parts and so on.
2. Walk through the Process in Your Mind First
Once you have the whole process broken down into neat groups, then take an hour or two in a quiet place to walk yourself the entire process. Visualize yourself finding deals and talking to the motivated sellers. See yourself getting financing and closing on the property and so on.
Notice any parts you feel uneasy about and write them down. Then write down what you know and do not understand about the process. Then go back and learn more about that before you visualize the entire process again.
3. Take the next step
Take the next step every day. Each day, just take the next step in the process of buying the house. This is not a race to get the end fastest. The first deal is your learning process. Take your time and work through each step like you visualized in your mind.
4. Minimize your risk
Eliminate the fear by deciding to only do a low or no-risk deal. I suggest that new investors start out wholesaling houses where they have very little invested in the deal.
By limiting your risk and knowing that you are only at risk for the $20 you put up as an option fee, you can move forward through the fear or remove the fear completely.