Unless you’ve been living under a rock you’re probably aware that investing in real estate is one of the best and fastest ways to create long term wealth.
The problem is, real estate investing can feel highly intimidating at first – there’s a lot to take in: finding a property, estimating and managing construction, navigating the financing, property management, and more.
The number one type of investment I talk about most frequently in my videos and mastermind groups is real estate investing. I’ve had a lot of success over the years in this field (and yes, the odd bump in the road too). I enjoy talking about it with people and mentoring those who are new to the game.
When I talk to people who haven’t invested in real estate yet, the most popular answer I receive as to why is because they simply don’t know where to begin. They don’t have knowledge around it and consequently, they’re missing out on participating in one of the best investment arenas out there.
So what’s holding you back?
In my experience, I’ve come to learn that there are 9 reasons why people don’t get into this line of investment, and not a single one of those reasons, on their own, are insurmountable which is why I’d like to outline them for you here.
My hope is that by doing so, you’ll identify with some of the points and then be able to upgrade & shift your inner narrative, hopefully inspiring you to begin developing a plan for how to join us on this epic journey to success!
Reason #1: The Unknown
This one is very straightforward. The reptilian part of your brain was designed to protect us and we know that we don’t like things we don’t understand, so we tend to say no to them. Overcoming this is simple. You have to get educated.
Surround yourself with people who are investing in real estate and start learning about the four ways you can make money by doing so.
Reason #2: It Takes Money to Make Money
If you’re planning to buy an investment property, you’ll typically need at least 25% down. On a $400K property that’s $100,000.00. A lot of people aren’t making ‘paying themselves first’ (i.e. saving at least 10% of your money each pay period to invest with) a priority so saving up this sum of money is challenging. That said, there are many ways to take advantage of creative financing, so if you know nothing about that, get educated there as well. The bottom line is if you’re committed and creative you can achieve anything – so figure it out and start saving!
Reason #3: You Don’t Have The Right Environment
If the people you’re surrounding yourself with aren’t contributing to your growth then you may need to find a few new people. Surround yourself with successful investors who are in the game. When you surround yourself with mentors and others who are playing the money game to win, you’ll find yourself making different decisions than you would otherwise because you’ll experience a shift in mindset. Masterminds are a great way to get into a new conversation that supports your growth, so find a Mastermind that best supports YOU and your goals, and make that happen no matter what.
Reason #4: People are Afraid of Repairs (and Leaky Toilets)
It’s cringeworthy, but true. This is an aspect of real estate investing that most people would prefer to hand off to someone more experienced. That is an option too, depending on the situation.
There are Property Management companies that will handle all the leaky toilets, broken HVAC systems and other issues. Don’t let the fear of a leaky toilet get in the way of achieving your goals!
Reason #5: Creative Financing
You don’t always NEED that 25% down I mentioned earlier. The first property I bought was purchased on a Visa card using Owner Financing. It’s not an option for everyone, but it worked in my situation.
My point is, there ARE other ways to get into the game. You need to be committed and creative to find them.
Reason #6: Emotional Fortitude
There are a lot of ups and downs in the real estate game – especially in the first 3 – 5 years! You’ll need a high Emotional IQ to get through this time – especially because things can change at the drop of a hat. Take COVID for example! A lot of investors weren’t prepared for this type of hit and it pushed them to the limit.
You’ll be managing financing, repairs and maintenance, tenant issues and many other challenges in those first few years. You also won’t be making much money during that time.
It’s when the mortgage is at its highest and net worth at its lowest and so in order to get through it, you’ll need to be able to maintain that CEO-style thinking, and have strong decision making and problem solving skills to successfully make it through. If you aren’t someone with a high Emotional IQ, you may pass on this type of opportunity.
Reason #7: Instant Gratification
People think about investing and they think it’ll be the key to making them rich instantly. It’s not true though, or at least not true very often. It takes time, work and patience. People want immediate results but that’s not realistic.
The key here is that you ‘Don’t Wait & Buy Real Estate; you Buy Real Estate & Wait’ to see success. This is, of course, coupled with hard work, successful management practices and all those other good things involved in running a successful company – but the rewards happen over time! You’ll have to wait to get that higher ROI.
Reason #8: Bad Student Syndrome
Being successful in this business, as in any, takes being the type of person who is coachable. So many people want to get into real estate investing but they choose not to take the time to learn the rules and then complain about being unsuccessful.
Put on your learning hat and then start your journey towards becoming financially free! Make sure you learn from those who have invested before you. Ask questions. Provide value. Become a sponge for knowledge and apply what you learn.
Reason #9: You Simply Can’t Handle It
You’re busy. Like, really, really busy…with kids, a job, a pandemic and all those things that keep your wheels turning. You already have too much on your plate and so you give up before you even start.
If you really want to make something awesome happen for yourself in the real estate arena, then I urge you to foster a ‘Make It Happen No Matter What’ attitude. When you’re committed and creative you can achieve anything, so what can you shift and juggle around to make this a reality for yourself?
Start Developing These New Habits
Change, just like amassing savings to invest, takes time. If any of these items hit a sore spot for you then perhaps you can choose those items as your starting point? The real estate game is one that is full of challenges, learning opportunities and fun and it’s one that I urge you to get involved in if you have the means and time to do so!
After you get your foot in the door, make sure you’re surrounding yourself with other investors who are succeeding and growing their portfolios and make this your new normal.
If you’re serious about leveling up your life and connecting with some of the mentors I’ve mentioned, then hop on a call with one of my top strategists to help you get from where you are to where you want to be.