How To Get Over Your Fear Of Investing In Real Estate
How do you get over the fear of real estate investing? What moves can you make to take advantage of the industry?
Many individuals can’t fathom being afraid of getting into real estate. They can’t wait to leap, grab life by the horns, and start seeing more of what they have always wanted. Others let fear sabotage them and cause them to drag their feet. It’s a real problem some people have. Sometimes it just creeps up on you at the last second. So how can you beat this obstacle?
- Recognize it for what it is
The term ‘the lizard brain’ was coined by famous author C.S. Lewis decades ago. It’s the prehistoric little voice that tries to keep you hiding in your cave, because you never know what could be outside. But what if we had never ventured out of caves, invented fire, or the wheel, or medicine? Recognize that this outdated ‘safety mechanism’ is flawed, and will sabotage you if you listen. Some people will help feed that too. Either because they haven’t figured out how to evolve, or they don’t want you participating and competing for what provides them control and riches.
- Realize what happens if you don’t invest in real estate
Do the math very carefully. Understand that if you don’t buy a home, you will still be buying homes for others as a renter. That is, until you simply don’t have the resources to rent any longer. That’s not a pretty situation to be in. If you want to be able to retire, help aging parents, help kids get a good start, or even just do more of what you love; then you also need to invest in real estate. This could be flipping houses, rental properties, or something else. If you don’t, odds are that you won’t be able to keep up with the rising cost of living and taxes. If you don’t invest, you’ll have to keep on living on less and less, even if you are getting pretty generous pay raises each year. How much less can you live on? What you should be afraid of is the consequences of not investing in real estate!
- Define what’s the Worst that can Happen
What are you really afraid of? For most, it all revolves around a fear that it won’t work out. That they won’t cut it in real estate. Have you been out there? Have you met many Realtors and investors? There are probably several thousand that you could certainly do better than. If they can make it you can. But seriously; what’s the worst case scenario? If you are already broke, then if it doesn’t work you aren’t going to be worse off. You can only improve your situation. If you’ve got a lot that you don’t want to lose; invest a little and scale as you see the results. If it’s an ego thing – solve the issues that make you think you don’t have what it takes.
- Get in Better Financial Shape
Some feel that they aren’t in a financial position to leap into real estate investing full time without knowing their bills will be covered until they start generating revenues and profits. There are relatively easy fixes for this too. Work on reducing your bills. Refinance high rate debt, or consolidate it to lower monthly payments. Stash 3 to 6 months of living expenses for emergencies. Get business lines of credit. This can all strengthen your comfort zone while creating a surplus to get started. You may even want to add a budget to this for keeping your spouse or partner spoiled. As they will either be your best supporter or biggest detractor. If they are happy with the results, they will keep cheering you forward. At the beginning it could be; let’s go to this real estate seminar, and I’m going to buy you a new outfit so we look awesome together. Maybe even make a weekend away of it.
- Invest in Your Real Estate Education
Squash fear of investing in real estate by learning. Most fear is of the unknown. Like little kids are afraid of what could be in the dark. Learn how it works, how to limit risk, and how to replicate success with proven processes and systems.
- Wade In
There are only so many tomorrows. And every day you wait you miss great deals and the compounding rewards of investing in real estate. So just start wading in. It’s a lot less scary to wade in at the beach step by step than to start with cliff diving right? So just start wading in a little every day. Take actions in and steps in the right direction each day. You don’t even have to ditch your day job or swim yet, just get your feet wet.