The Fear of Real Estate Investing
What’s Stopping You?
Most people you talk to think that Real Estate Investing can be a good investment. They have heard all the stories about how so-and-so made it big in Real Estate Investing.
They have also seen the TV shows that show these same types of success stories. These shows are usually doing fix and flips. In real life, not all fix and flips are successful.
If so may people are getting rich in Real Estate, why aren’t more people taking advantage of it. FEAR. Here some reasons why people don’t get into Real Estate Investing.
- Too Complicated – You should have a good Real Estate Investing education before you start investing in Real Estate. Or you should be working with a Mentor. After 15 years, I am still learning.
- Too much time – Sure there are Real Estaing Strategies that can take up a lot of your time (Fix and Flip). There are also simple strategies that are very simple and don’t require a lot of time and involvement (mortgage holder, Lease Options)
- Too many day to day problems – There are all kinds of problems associated with owning real estate. Tenant problems. Property problems. Showing the property. But don’t worry,, there are other strategies that can be very passive.
- Very Risky – This fear is usually related to what the property is worth relative to what you bought it at and if your investment is cash flowing or not.
You should never invest purely on speculation. You want to make sure your property has a good positive cash flow. You should make sure that you have some money set aside in case of an emergency or if you have a vanancy.
- Psychological – Deep down they have a resistance to taking the next step, to take action and to acquire the property. Fear of failure. Fear of success.
- Not a good investment – Obviously they never did the math and they are relying on what other people have told them. They didn’t take into account all the expenses. Usually they don’t said aside any money for maintenance or property management. In some cases people can double your investment in a very short period of time.
The key is high leverage investments. But make sure there is enough income to cover the high costs of leverage.
The ability to get moving and take action is what is hurting most people.