What are some of the things that you did to help yourself get over the fear of buying your first house? TIA!
Think of what it would be like to work for somebody else the rest of my life.
I got it with lots of equity that if something went wrong, I was still safe. It also took couple of seller meetings till I realized it is simple process.
I was damn near broke and in fear of not being able to pay my bills. Talk about a motivator.
I do so many things to motivate me and keep me in the mindset I am in today:
I load up my Ipod / computer with hundreds and hundreds of hours of audios of coaches / success speakers / real estate teachers and listen to them all the time.
I printed out nearly all the articles I could find on real estate investing, made books out of them and read them whenever I have time. Same with success stories.
I accumulate a huge library of Real Estate books, success books, motivational books and that’s all I read.
I frequently speak on a regular basis with a fellow investor. We hold each other accountable and continue to push each other to achieve our dreams.
I spend countless hours reviewing real estate courses I have bought, making notes, reviewing audios.
I spend a few hours a week planning out my entire real estate business and exactly how I want it to work.
It’s not just ONE THING that will help you be motivated. You must make the decision to IMMERSE yourself into Real Estate and just DO IT.
The biggest motivator of all is having a big enough reason to do real estate. If you don’t have a big enough reason, no matter what motivational stuff you feed yourself, you won’t succeed, period.
Find a reason WHY you want to become successful in real estate and continue to feed on it until it becomes a burning desire.
If someone is afraid, it’s often because they aren’t ready or have a fear of the unknown. I wasn’t ever afraid because I had a good plan.
I agree with Dee. I’m not sure what you are afraid of? If you really studied your business and have a viable plan, there should be an almost 100% chance of success. When I buy a property (we’re acquiring four more small apartment buildings this week), I have absolutely no fear that I won’t make money. As Fadiz said, if you buy at a big enough discount, it is all but certain that you will make money. Absolutely nothing to fear here.
On the other hand, if you don’t have the required knowledge about your business; don’t have a viable plan; and don’t buy at a Big Discount, you have every reason to be afraid. The vast majority of newbies fail for these reasons. Just as success is assured if you do things right, failure is assured if you don’t.
So, learn the basics of your chosen business, develop a realistic and viable plan; buy at a HUGE discount and you’ll have nothing to fear.
Mike
Great points from Mike and Dee. In the seat that I sit in now I can 100% understand. Tell me these things when I was just starting and looking to buy my first property, different story.
I agree that you should study your business plan, know your market, and buy at a big discount, but when you are starting anything new there are nerves.
My first rehab I bought where my butt was on the line… the numbers were perfect and I was ready to make some money! My business plan was set and I was sure that I could do it. And…I was nervous as hell because it was something new that I had never done before and this was a risk I had never taken.
I would love to hear about everybody’s story when they bought their first property and what mindset they were in. Cool and collected? Excited? Biting their nails until they bled? Any takers?
When we closed on our first duplex on the drive away from the closing table the seller’s Realtor called my Realtor to say that the upstairs tenant called and said the stove wasn’t working. My wife and I’s heart dropped to the floor. I can still remember the feeling of horror. I thought I had just distroyed our lives.
I went over to the property and the 100 lb propane tank was empty. I didn’t know what to do so my dad drove over 200 miles to meet me. We took the propane tank to four different places until we found one that would fill a 100 lb tank. Then they said we had an out of code dial on the tank(needs to be a triangle or something). So I brought the tank back the duplex and the tenant told me to call the gas company. I called them and for $64 they came out and replaced the tank with a new one. All that stress and it was only $64 to have them come out and drop off a new tank.
It was Hell on earth.
Everything has risks. The key is making sure you understand them and mitigate them. Once you realize that you’ve managed your risk so it’s very small, then you’re set. Don’t get into paralysis by analysis though.
Ask yourself what you are willing to risk. All business involves some degree of risk, but I also agree with the folks who explain that you can hedge against risk with a good plan. Working for someone else and hoping that they will not go bankrupt and default on their pension plans is risky, in my opinion. It is risky to have your money in a 401k or a ROTH IRA or a 403b or whatever entails trusting someone else to have your best interest at heart, and trusting a money manager to be honest, which obviously isn't always the case. Risk is a matter of opinion. Buying real estate is a good idea for many reasons: cash flow, appreciation, depreciation, leverage, and it's a place to live. Homeowner mortgage interest is deductible, you can leave the property to your children, even if tenants trash the place, they wont roll up the floor, roof and the walls. If you buy well, there is no reason to be afraid.
Disassociate yourself from yourself - go in with an “I’m the CEO of this business” attitude. and, as others have said, have a plan. Know what you want to accomplish, when, and what it will take to get there.
Change your what ifs in your head to a positive spin.
Instead of What if:
I buy it and go broke
A toilet clogs
my tenants move out
Think
What if:
I dont invest and im stuck in a life of mediocrity like most people
I continue to do what I have always done
another tip that I have found helpful is to think like a 3 year old. 3 year olds dont have all the horror story baggage, and preconcieved ideas, they simply look at whats in front of them then either do it, or dont, depending on if it looks good. They dont think about the friend who had 3 tenants move out and trash a home, they would instead look at the numbers, look at the numbers, if they look good then…done deal
If you really work your numbers, you will be unlikely to lose money. Think of the worst case financial scenario, and plan for it.
I was going around and around about a property, and finally my husband said
“The numbers work, go for it - life is about taking risks”.
So I did :smile
It was kind of scary, and there was that funny moment after getting an accepted offer - where I thought that it was one of those moments that set you on a new course in life.
I like what eric said. Think like a 3 year old. I don’t exactly remember what it was like to be 3, but when my son was three and he wanted something, he would do everything it took until he got it! As adults we get caught up in all of our baggage that we have built up over the years. I think it was Tony Robbins that asked the question that went something like this… if your 1 year old child tried to get up and walk and kept falling down, when would you tell him or her to give up? NEVER!!! Yet we have all quit on something at some point. LET’S ALL BE 3 YEAR OLDS!!! WOOO HOOOOOOOOOOOO