You’ve made the decision to take more control over you financial health by investing in real estate. And just like the decision to take care of your physical and mental health, taking care of your finances seems like a no-brainer.
So why is buying your first investment property wrought with fear, and how do you overcome it?
Dealing with skepticism
Perhaps your fear is fueled by skepticism. The good news is that skepticism is a healthy trait in real estate investing, because without it, you might be drawn into a deal that is not in your best interest. But problems may arise when your skepticism becomes unhealthy and leads to inaction, which leaves you no better off today than you were yesterday.
To prevent inaction from setting in, check out these 7 Strategies for Conquering Skepticism. Below is my take on it:
- Be educated – get a mentor, join a network of likeminded people, and realize that investing is not something that should be done without learning how to invest in a strategic way
- Get out of your comfort zone – when you feel uncomfortable, it actually means that you’re growing. Everything that you currently have is within your comfort zone, therefore, in order to get things outside of your comfort zone, you’ll need to get uncomfortable.
- Does it cash flow? – real estate investing in unemotional. If the rent is higher than all the related expenses and mortgage payment, that means that property is making money for you. The property may look good, but until you do the numbers, you never know if it’s a ‘business’ or a ‘liability’.
- Follow your gut (once you’ve done your due diligence and weighed the risks unemotionally) Remember that failure is inevitable. Even long-time investors have had some deals go sour. But they have learned from their mistakes and become more successful because of the experience.
Back to the basics
But what if you find yourself stuck with fear, skepticism and inaction? What then?
- Go back to the basics and start with WHY?
Why did you want to get into real estate investing in the first place? Why did you want more control over your financial freedom in the first place? What was the dream that fueled your desire to begin learning, preparing, and networking to get you to this point? Keep that deep seated reason front and center, and then…
- Take daily action.
The best thing to do is to move forward. What’s one thing you can do today that will get you further ahead tomorrow? Then repeat the process tomorrow. Do one thing tomorrow that will get you further ahead the next day, and in two days, you will have accomplished two things that get you closer to your goal than you are today. And remember that sitting on the sidelines is NEVER going to make you money.
There is an old saying, “Who you journey with is who you will become”. This is the case with Ben Hoffmann, who had been working since the age of 16 as a framing carpenter during high school. While having lunch one day, he was listening to his older construction co-workers talk about investing in real estate and the many benefits of ownership. Ben was only 19 years old when he bought his first investment property.
Ben looked up to his colleagues, but being a curious and wise young man himself, he wanted to do some research first and really understand the real estate game before taking the next steps. He read Robert Kyosaki’s “Rich Dad, Poor Dad” and learned that it was investing in profitable real estate that made people rich as opposed to higher education. Ben thought to himself, “I can relate, I love working in the construction industry andI don’t care much for school.”
Since Ben lived at home with his parents, he was able to save quite of bit of money from working full-time. It wasn’t long before Ben decided to purchase hisfirst property, a turn-key2 bedroom condo in St. Albert, Alberta. The property had all the economic fundamentals of a solid investment. His suite would be managed by Alture’s in-house property management and Ben really didn’t need to contribute any more time except to check his bank account every month to see his tenant’s rent deposit. He now knew what his co-workers were preaching about and is proud to “journey with them”.
Ben states, “I couldn’t have done this without my loving and supportive family but the key to this success was working with real estate investment specialists, who introduced me to completely hassle-free investments. “ Today, Ben has 6 investment properties, and is currently working on his 7th. His goal is to purchase 10 more properties in 5 years, for a total of 16 investments, and to inspire other young people to start saving to invest. – Way to go Ben!
My recommendation. One thing I consistently hear my clients say is “I wish that I had started real estate investing earlier.” I always tell people it’s never too old or too young to start. I have clients who started investing in their late 50’s and were able to purchase 3-5 properties a year. The first property is the hardest, but I must warn you that once you start, it does get addictive. Ensure you have a knowledgeable real estate investing team around you that has a track record of success so you can learn from them and avoid disappointments.
I am a licensed realtor dedicated to securing you wealth through strategic real estate investment. My mission is to help you achieve financial freedom by creating enough passive income to eventually replace your working income, so that you can spend more time doing what you love with the people you care about. For more information, go to www.pointbinvestment.ca.
Let me introduce myself. My name is Teresa Leung and I am a Real Estate Investor and REALTOR®. My job is to help people’s money work harder for them through investing in strategic income-producing properties in Western Canada.
Prior to doing this full-time, my real estate investing dream was well… just a dream. I am a single mom and my goal was to have the liberty to work less AND spend quality time with my young daughters.
I started my journey to liberty by creating a vision board of everything that I wanted in my life within five years time. Along with many other desires like getting better sleep and finding the right balance between work and play, I envision myself owning 20 doors. At that time, I only owned my principal residence and didn’t know how or where to start.
Napoleon Hill, best-selling Author of “Think and Grow Rich”, once said, “Desire is the starting point of all achievement, not a hope, not a wish, but a keen pulsating desire which transcends everything.”
With that in mind, I looked at my vision board every morning when I woke and every evening before retiring to bed. By undertaking this simple step, I have created in my mind the intention to attain the things I wanted. I then took action. I got out of my comfort zone, and started to surround myself with people who were already successfully doing what I wanted to do.
Two years later, I’ve acquired 8 doors, all producing a positive passive income. In addition to that, many of my other goals on my board started to materialize and I am almost halfway to my goal of 20 doors!
What did I learn from this experience? It’s important to dream big, but know that a dream is just a dream without actions.
– Teresa Leung
I am a licensed realtor dedicated to securing you wealth through strategic real estate investment. My mission is to help you achieve financial freedom by creating enough passive income to eventually replace your working income, so that you can spend more time doing what you love with the people you care about.