This is for anyone who has let their fears prevent them from taking advantage of opportunities. To help you take the necessary next steps in your life, I want to go into the psychology of investing and help you overcome your concerns. Nothing worthwhile was ever accomplished without first taking some risk.
So, this is for the first-time investors among you. This will also be useful for those already well-versed in the industry and who possess the necessary skills and training. In a sense, everyone can relate.
A woman I was sitting next to at a recent real estate investing lecture told me she had invested more than $40,000. Almost everything that could be read or heard was in her possession. She was so knowledgeable that she might have been MY business mentor. I could confidently quiz her on a wide range of topics. When I questioned her on her lack of homeownership, she said she had never been in a position to do so. When I asked her why she never placed an ad in the paper, she said, “I was afraid someone might call.” We do that, and I told you not to be afraid to try it. I suggested that she compose a script to follow if she receives a call from a potential home seller. As she said then, “I was afraid if I bought a house, I wouldn’t know how to get rid of it!”
If you’ve got the chops and the ambition but haven’t taken the plunge yet, this article is for you. Worry and trust are opposites. The belief that you will succeed and the worry that you will not always coexist if you have both. You know in your heart that you have what it takes to succeed, right? You wouldn’t be getting this Newsletter if you didn’t think you could follow, would you? You wouldn’t bother studying if you didn’t know you could make it in this industry.
Some advice on how to face your fears:
Obtain a guide. There is no need to invest in a costly mentoring program. A person you connected with at your local real estate investor club could serve as your mentor. Inquire as to whether or if you may occasionally phone them with questions. If you contact them once a week and chat for 10 minutes, they probably won’t mind.
An alternate strategy is to find a local dealmaker to work with. Just let them know you constantly receive bargains and are unsure of their quality. Make it known that you want to do your initial business with them. Possibly you two could do a deal together and divide the proceeds if you phone them and ask if it’s okay to run it by them beforehand. Tell them you’re willing to undertake the task but would want a second opinion. Many investors will take you up on this, despite their protests that they don’t require your financial assistance.
A realtor who deals with investors or a long-standing landlord who owns multiple homes or apartment complexes would fit this description. A mortgage company might be involved. Capital is essential to the success of any organization. A mortgage lender has unparalleled knowledge of the mortgage industry. The crucial step is to take action. Don’t waste time worrying about everything that could go wrong at work or home. Networking is essential. I wouldn’t be where I am today if it weren’t for networking. I joined as many REIAs as possible, went to events, and eventually felt comfortable enough to invest independently. You never stop gaining knowledge, too. You must not be timid about reaching out to others, shaking their hand, and engaging them in conversation by asking them questions.
Forming a mastermind group with other people is another option. A mastermind group and networking with other investors have been invaluable to my business success. A little encouragement or a swift kick can help you overcome your fears and take action. Don’t give in to the terror!
Wholesale transactions, bird-dogging, and options deals are all excellent places to start. These pose no danger in any way. You’ve found a lovely home at a reasonable price, and now you want to buy it. When you tell the seller this, they should expect you to back out of the deal. Inform them that you will have the option to buy the property. Inform them of the truth. Inform them that you will be shopping around for a higher offer elsewhere. Tell them you’ll be thinking about their home when you sleep at night and wake up in the morning. Even when you’re not actively searching for a buyer for your home, you’ll be thinking about theirs the entire time you’re awake.
Advise them to keep their expectations low. How dangerous is it? You may put down a hefty choice deposit of $50 or $100. How much are you willing to risk, once again? Nothing! You haven’t compromised your honesty either by being very straight with him about possibly being unable to purchase the house. A wholesale transaction is the same way. If you are a wholesaler, you probably wouldn’t inform the seller that you’ve already found another buyer, but you could if you were too nervous to return to the original vendor. If you’re dealing with the appropriate kind of sellers, they won’t care WHAT you say as long as they feel you care about them and want to help them. To what extent do you assume danger when wholesaling? If you can’t locate a buyer for the house, you cancel the sale.
I don’t understand your terror. The phrase “the only thing to fear is fear itself” is sometimes appropriate. This is an old proverb, but it holds even today. Not to worry about anything at all.
There is no reason to be concerned about short sales. You are forewarning the seller that you will negotiate with the bank to lower the price to a point where we can buy. If the bank doesn’t work with you, immediately tell them you can’t afford the property. So, why not give it a shot? Don’t give in to that panic.
Participate in wholesale transactions, options transactions, short sells, or bird-dog for other persons. If you come upon a great deal, don’t be shy about sharing it.
Keep in mind that everyone here had a helping hand when they were starting. One agreement leads to another, and another yet leads to a third. However, the first one is mandatory. Stick to one specific kind of business transaction. If you’re feeling anxious about completing your first deal, I wouldn’t recommend a sub-to or rehab. For your initial transaction, settle on either a wholesale or an option contract.
Yes, you have what it takes to succeed in business. You can do it, too, if I and a thousand other people can! Replace worry with trust in God. Begin each day with the affirmation, “Yes, I can!”
Nick Cifonie has actively participated in the real estate market for many years. Using strategies like bird-dogging, wholesaling, lease options, subject-to transactions, buy and holds, seller financing, retail flips, assignments, options, auctions, and even eBay, Nick has successfully acquired and resold homes and apartment buildings worth millions of dollars. Nick hosts the popular instructional series “Real Estate Investor TV.”
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