What was my biggest hurdle to buying rental properties?
I had been an agent for quite some time when I decided I wanted to buy rental properties. It took me almost two years from the time I decided I wanted to buy rentals until I actually bought one. Becoming a real estate investor can take some time, and that is why many people never do it. They do not have the patience. The biggest reason why it took me so long to buy a rental was saving the money for the down payment. I also had to convince myself that buying a rental was the right thing to do!
I ended up refinancing my personal house to get the money to buy my first rental. It was one of the best things I have ever done!
How can others save money to invest in real estate?
I made really good money as an REO and HUD listing agent, but saving money was still difficult for me. It is hard for most people to save money, but you still have to do it. Even if you never invest in real estate, saving money is imperative to being financially secure. If you can’t save enough money, there are still many ways to buy real estate with less money down. Many real estate gurus preach you can get rich in real estate with no money, but it is really hard. It is not easy and will take a ton of sacrifice and time to make it without any savings. If you can save money, it will make everything else so much easier.
Why does it take so long to invest in real estate?
It is not easy to learn how to buy rentals, flip, or to wholesale. It takes more than a couple weeks to learn a market, the strategy you want to use, financing, and how to evaluate properties. Most people are impatient and will not take the time to learn what they need to learn. A lot of people also hope that someone will magically teach them everything. However, you have to learn your own market and create your own strategy. It may take a year or two before you buy an investment property, but remember, time goes by fast. Once you buy your first deal, it all become much easier.
Why does attitude affect people’s ability to invest in real estate?
If you want to be successful at anything, you cannot assume you will fail. A lot of people start new ventures all the time but are constantly thinking about how hard it is, how tough it will be, and how long it will take before they give up. You have to be positive, have a plan, and have confidence that you will succeed at whatever you do. If you think you are going to fail, you probably will. If things get tough, you will quit and not persevere through the tough times if you do not have the right attitude.
How does fear and analysis paralysis stop people from investing in real estate?
Fear stops many people from doing a lot of things that would make them happy. It has stopped me before, and the things I regret the most are not the things I tried that did not go my way but the things I was too scared to try. Many people could be great real estate investors yet never buy a house. They over-analyze everything and talk themselves out of it. There will also always be something going on in your life that is more important. You cannot wait for the perfect time. The perfect time is when you find the right deal and then buy it. I bought my first rental when my wife was pregnant with twins.
Real estate investing can change your life but not if you do not buy any properties. It may be scary, you may even lose some money on your first deal, and it may take a long time, but it is all worth it. Most people never invest in real estate because it is hard. If it were easy, it would be much less rewarding and much less lucrative.