Worried about getting into real estate investments? Are you unable to act due to uncertainty and doubt? You’re not alone. Here are 4 easy steps to overcome the fear of investing in real estate.
1. Group the real estate investment process into larger manageable pieces
One of the reasons you may be scared and unsure if you are making progress as a real estate investor is that you feel overwhelmed by all the details and unknowns.
When something new begins, it is often helpful to take the entire process and group it into a few (3 or 4 large pieces). The idea is a 3 or 4 step process that you can understand and understand in a single thought. A 19-step process is overwhelming and when you’re overwhelmed, you tend to freeze.
I am not suggesting that you oversimplify and look at the details. I suggest you group and then subgroup each group, adding more details as you go through the process.
For example, you can divide the investment into 4 parts:
to. Find deals
yes. Acquire the property
vs. Repair property
re. Sell the property
Then go back and divide “Finding Deals” into 3 or 4 main parts and so on.
2. First see the process in your mind
Once the entire process is divided into ordered groups, take an hour or two in a quiet place to guide you through the process. Visualize yourself finding deals and talking to motivated sellers. Notice getting financing and closing the property etc.
Write down all the parts that concern you and write them down. Then write what you know and don’t understand about the process. Then go back and learn more before watching the whole process again.
3. Go to the next step
Take the next step every day. Take the next step in the home buying process every day. It is not a race for the fastest end. The first thing is your learning process. Take your time and follow each step as you visualize it in your mind.
4. Minimize your risks
Eliminate fear by deciding to enter into a low-risk or no-risk deal. I suggest that new investors start by selling wholesale houses where they have invested very little in the operation.
By limiting your risk and knowing that you’re only risking the $ 20 you entered as an option fee, you can move forward in fear or eliminate it entirely.