Common Real Estate Investment Misconception
A common misconception real estate investors have is that knowing all the right techniques will make them successful real estate investors. That is why some people will spend tens of thousands of dollars on high-powered real estate boot camps and still they haven’t done their first deal. They keep preparing and preparing. Real estate investing is just like anything else: it’s 90% mindset and 10% knowledge.
For the most part, it’s not a lack of technical knowledge that stops people. What stops beginning real estate investors is the belief they lack some key knowledge. And that belief will stop them dead in their tracks from taking action. It reminds me of when I first learned to read. You can probably remember the teacher having you read out loud in front of the class. It was so traumatic for me, they thought I had a learning disability. That stunted my success through most of elementary, middle school, and high school. I didn’t try very hard because I believed I lacked something other people had.
I didn’t excel as a student until I was in college when I was forced to become a better student or go home. As I developed confidence, I unlearned the conditioning that taught me I lacked something other people had. Do you think you lack the success gene? You don’t.
You will see that you are just like everyone else. You have the gene. You will develop stronger, more empowering beliefs in yourself as one of the successful real estate investors as you create more and more success, one step at a time in the real estate market. This article is about what to do about the fear that comes naturally as part of getting involved in real estate investing, so you can take action instead of becoming paralyzed. And the next natural step once you have a way of dealing with that fear, taking personal responsibility to quick the pace of your success.
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Investing in Rental Properties can be very Scary
Let’s face it. Doing something new is always scary. It’s not difficult to become convinced of the benefits of buying Oklahoma City rental properties.
Successful real estate investing is all about getting started. Many people these days will find a mentor to help them get started. A mentor can be a fantastic resource for someone so they can just get them through the purchase of their first investment property. Once you go through the process once, the next one and the one after that will be easier and easier.
You can be one of the successful real estate investors. You just need to have a way of coping with the fear. Again, that’s where a mentor can be a big help. Once you start investing real money, you start to get out of your comfort zone if you haven’t done it before. That’s when you may find yourself making excuses that keep you from putting your money at risk.
Example of Fear
When my wife and I purchased our first Oklahoma City investment property, we were up half the night worrying about the first offer we made on a property that was actually accepted.
Courage in the Face of Fear
You could call successfully dealing with fear courage. I’ve heard courage defined as the ability to take action in spite of feeling fear. So, there is a line between what you could call “being stopped” and “courage”, which is constantly moving while you are engaged in an activity. That is, as you gain experience, and have done something over and over, what was scary the last time you did it is now familiar. Your ability to move that line is what I’d consider being the mark of success. Below I’ve listed some ways to help you deal with fear.
Weapon Against Fear
As mentioned above, a mentor who can walk you through your first purchase can be a huge help. But here are some other techniques that help you deal with the stress of it all.
If you recognize how fear is stopping you, many times you can also move through those fears to take the actions you need to take. Taking consistent action is the best way to leave your fears in the dust because when something becomes familiar your comfort zone expands.
Different Ways to Defeat Fear
Breathe. When you start to feel fear in your body, keep taking deep breaths into your belly. Taking a quick walk can also help you start breathing.
Take Action. You will know when you are procrastinating. Do you have enough information to make a decision? If so, just make the decision. It may be that you don’t buy the property. That’s definitely a decision too.
Self Confidence. Self-confidence will grow with experience. It will just become easier and easier.
Stay Engaged. Don’t let anything take you out of the game.
Courage has a sister called taking responsibility. I consider taking responsibility to be a sister to courage because it will help you move that line much faster.
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Taking Responsibility: Your Meal Ticket as a Successful Real Estate Investor
How many times have you done the following? Give yourself one point for each yes:
- Got blamed for something minor at work and instead of accepting responsibility, made an excuse or passed the buck (blamed someone else).
- Same situation, but at home.
- Same situation, but with a friend.
If you don’t have at least one point, congratulations! But I doubt you are not human. We have all made excuses or passed the buck at some point in our lives. The question is, how much of a habit is it for you?
What’s the big deal anyway? Why is it critical to take personal responsibility for what you have done/do? The simple answer is that if you don’t see yourself as responsible for the problem, you probably don’t see yourself as the solution to the problem.
So much about success is your ability to solve problems. Think about it in a real estate investing context.
- How are you going to find a really good deal?
- How are you going to get the money and/or financing together to purchase that great deal?
- How are you going to get the repairs and make them ready and completed once you own the property?
- How are you going to get that property managed so it’s a money making machine?
Did you notice that every one of these questions is a how question? Great problem solvers are in the habit of asking themselves “how ” questions. ” How will I raise the money?” ” How will I get more support in this situation?” By asking a “how” question, you engage your mind to work on coming up with solutions to those questions.
Don’t waste time and energy with a bunch of why questions, like “why can’t I find a great deal”? This is not taking responsibility to find a solution to the problem. Excuses won’t lead you to solutions. Focus on those solutions!
Also Read: Factors Affecting Real Estate Market
Example of Taking Responsibility
After a few years of involvement in real estate investing, things were not going as well as I would have liked because I knew so little about being a landlord. I took responsibility to fix the problems, and I just flat wouldn’t give up. I got some education under my belt. Suddenly, solutions didn’t seem so far out of my grasp.
What taking personal responsibility looks like is not making excuses. Taking personal responsibility for your life means being honest. It means being able to admit to yourself when things are off track. When you might need some help.
Note: Should You Form a Real Estate Partnership?
What Supports Taking Responsibility?
Agreements. Always give adequate instructions and set good agreements upfront when you hire someone or enter into some other type of agreement to do something.
Follow Through. Notice how well you are following through with the goals you set for yourself. If you are consistently missing the mark, ask yourself why this is happening. Follow up with contractors, realtors, and other team members to make sure everything is on track. Take responsibility to make sure things go as planned.
Responsibility. If someone you hired is operating outside of integrity, it is your responsibility to deal with it. That doesn’t always mean fire them. Most of the time, it means clarifying what’s going to happen, and when.
Reflection/Meditation. Take time every week to meditate or reflect on how things are going for you as a real estate investor. Ask yourself if and how you have been shrinking your personal responsibility.
You fix it. Take an attitude of the buck stops here. If something needs to be fixed, handle it. Take the attitude that you will always find the winning solution.
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FAQs on How to Become a Successful Real Estate Investor
How do I become a successful real estate investor?
You can become a successful real investor. You just need to cope with the fear. A mentor can be a big help. Once you start investing real money, you start to get out of your comfort zone if you haven’t done it before. That’s when you may find yourself making excuses that keep you from putting your money at risk.
What qualifies you as a real estate investor?
Investors must be involved in the rental properties that they own. As a real estate investor, one needs to participate in the operations of their real estate in a regular, continuous, and substantial way.