First Time Real Estate Investors – Getting Over Your Fear

One of the biggest obstacles beginner real estate investors have to overcome is FEAR.    Below are some ideas to help you overcome it.   After the first few deals, buying and selling real estate becomes almost like buying a pair of shoes.    You walk by, you see it, you like it, you analyze it, and you make an offer.  Didn’t work out?  Toss it aside and move on to the next one.  Easy!

ONE: Take action right away

Don’t wait – do what you are afraid to do right away, even while you are afraid to do it.  Just close your eyes and jump in, feet first.  Your fears will dissolve once you get yourself to take action and stay busy.  The key is to not wait.  I’m not saying you should not analyze your deals – you should never jump into a deal blindly.   But I am saying that once you have determined that you have a great deal in front of you – go into action.

real estate investors fearWhen I was at the Antelope Valley Fair, I decided to  Bungee jump off a crane.  The first time I went up, I had my eyes closed for almost the entire time.   I just went up and jumped without hesitation or thinking, because I was afraid to open my eyes and look down, and I just wanted to get it over with.     After they lowered me to the ground, I didn’t think it was that bad and went up for the 2nd time.  But the 2nd time, as I kept looking down, it took me over 5 minutes to muster up the guts to jump, and I was just about ready to turn around and go back down.   I didn’t because I was too embarrassed to have wasted 5 minutes of the worker’s time, and then not having jumped – so I did.

Waiting NEVER makes things easier.    Confirm what you are going to do, confirm that it’s the right thing to do, and do it!

TWO: Don’t think that you’ll ever know it all

Many first time real estate investors say they will start working the deal after they study and figure everything out.   The problem is that the more they learn, the more they realize that there is sooooooo much more to learn.  Paralysis of the analysis keeps many would-be investors prisoners.  The  trick is to get yourself to take action knowing that you’ll never know it all.

As an engineer, many times I’m tempted to get all of the numbers worked out, all of the studies done, and all of the reports reviewed before I make an offer.  As a result, I’ve lost out on some of the deals that were snatched out right from under me.   No more!   If it looks good, and if it feels good – go for it.   You will still have a due diligence period to finalize your calculations and re-negotiate the price.

THREE: Recognize that you are bigger than your fears

Many people think that the fear is a part of them, and they will never overcome it.  They have reconciled with living with this nagging fear, and are hoping they will be able to overcome it when the time is right.   That is not so!

You are bigger than your fears.   You need to be able to separate them from YOU.  Take action, but recognize that the fear will creep up.

When it does, say to yourself: “Isn’t that interesting… here I am , trying to make my first offer, and I notice that my fear is acting up”.  And as you say this, know that your fear has no power to stop you, unless you allow it to.

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