Being scared is normal. I was scared to start investing in real estate also. Here’s some lessons I learned and how I became more comfortable with investing in real estate.
Are You Scared To Invest In Real Estate?
Being scared and having fear is normal. Most people are more afraid of losing than they are excited about winning. This holds a lot of people back. Your mind. Your thoughts. The people you hang out with. All these things can contribute to being frozen from taking action.
I started investing in real estate 3 1/2 years ago. I was scared also when I got started. Thoughts such as;
- what if I lose money?
- this is a big investment
- is my timing right?
- I’m new at this and don’t know everything there is to know about real estate
These thoughts and many more.
How Did I Get Passed My Fear?
- I made the decision I was going to do it and I committed to making it happen.
- I took action!
What Were Some Lessons Learned?
- there are massive benefits to investing in real estate including leverage and tax efficiency
- leverage – real estate provides the opportunity to leverage the bank’s money through loans of 70-80% of the purchase price and leverage OPM – other people’s money
- tax efficiency – real estate is an appreciating asset that you get to depreciate for tax purposes
Capital Preservation
I took a bunch of money out of the stock market and invested in real estate transactions. When the stock market took a nose dive with Covid in 2020, I felt way more comfortable with my hard earned dollars in real estate vs being in the volatile stock market. The real estate deals I’m invested in do not have ticker symbols so I did not see the valuation of my investments drop by 40% in a matter of a few weeks. It may not be for everyone, but I slept much better at night knowing my investments were in real estate vs the stock market. Don’t get me wrong, I did invest in the stock market when stocks took a nosedive and I’ve been happy with the market’s performance since then but the bulk of my assets remain in real estate.
Want To Hear A Story From Another Investor That Was Scared But Took Action?
Click above image to listen or read story on David Lagat and how he pushed past the fear.
Why do I share this story with you?
I remember how investing in my first real estate deal was scary. I knew that a lot of people built great wealth through real estate but I felt like I didn’t have the knowledge and I let fear delay me from getting started. I’m so glad I finally got started and I want each of you to find success through real estate investing also. Don’t let fear stop you. Get educated. Read books, listen to podcasts, meet people that have done it before then take action! Wishing you much success!
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