The Paralyzing FEARS of Real Estate Investing Explained…Did some one say FEAR? Yes, the FEARS of real estate investing… how can it befearful… real estate is about making money. Right! For about 5% this is true,and for the other 95% real estate investing is a paralyzing fear causing them tosit on the sidelines. Literally stuck to their chair by hearing all the horrorstories; From friends and media about people losing lots of cash money or payingsky rocketing mortgage payments and dealing with foreclosure.What is FEAR? Most people quickly comment, False Evidence Appearing Real… Right?No that not right. FEAR is Anticipation of PAIN. Fear is Anticipation of Pain…Is it a present, future or past event? Fear is a future event. And all futureevents are not real until they become present. All I ask you is to be aware ofthis… because this is what stops 95% of all investors….The Fear of Financial LossSo Real Estate Investing does entail taking financial risks. But can someone showyou a business or investment venture that required no risk? Taking uncalculatedrisks is foolish! But taking measured and diligently analyzed risks is a smartdecision. Understanding how to analyze a real estate deal and setting clearlydefined investment strategy can help minimize financial risks.Some Real Estate Investors fall in love with the “property” but remember that it’snot the “cosmetics” that make an investment an awesome deal, it’s the financials.Before you purchase that first property, which, of course, you financiallyanalyzed, determine what you expect from your investments…your financial goals.It's known as "The 'time vs. money’" concept. The more you have of the one, theless will you need of the other, in order to achieve your financial goals. Someonesaid it the best: You can either make excuses or make money but you can’t haveboth!The Fear of LeverageMany Real Estate Investors want to maximize the use of their own funds to own realestate. In a downturn economy, when most sellers are desperate to sell theirproperties, why aren’t investors taking advantage of existing equity in theproperty? Regardless of what youmay have read or heard, there are still some legal and creative ways to takeadvantage of the existing equity in the property. Will you rather have a 20%equity in the property and use 20% of your own capital to purchase this investmentor is it a smarter strategy to use 20% of the “dead equity” in the property as adown payment?Try analyzing a deal with your 20% down and then without using any of your money,which deal will get you higher annual cash on cash returns? Left Equity in aproperty is a dead Equity. Use it or lose it over time!The Fear of Making a MistakeFor most real estate investors this is the #1 Fear that will stop you from makingany decisions regardless of knowledge and experience. This is the big one. Ican’t make a mistake.I say 100% of all real estate investors have the same fear regardless of how muchexperience or knowledge they have. It’s just about how they handle it. Investorslose thousands of dollars in lost investment opportunities based on the Fear ofMaking a Mistake…Fear of making a mistake is grade school myth that has been engrained in us, tothe point that paralyzes us to the point that I’ve seen some investors enter astate of analysis paralysis. Let me tell you its okay to make a mistake, this is
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