Hi Everyone,
I hope you are doing well.
Real Estate investing is an interesting thing.
There are people that become extremely successful at it, and there are also people that try it out for a bit, but end up throwing in the towel and giving up altogether.
The people that give up, do so as a result of a variety of reasons. I would argue that most of the people that give up are giving up because they are burnt out.
The stress of investing in real estate really gets to them, and they feel that their only course of action is to sell off their real estate.
Then, there are those people who think about investing in real estate, however, never end up doing so because they defeat themselves.
These people are defeating themselves in their minds, well before they have even physically started to invest in real estate.
Focusing on and speaking directly to this particular group through this blog post is very important to me. It is very important as many of you reading this very article may fall into this group. You may be considering investing in real estate, and buying your first rental property.
The reality is that most of the people that fall into this group, never end up getting started, and it is due in my opinion exclusively to limiting beliefs that these people hold.
Before I explain these limiting beliefs, I would like you all to know that this article was inspired by Yaro Starak. As I have mentioned in a previous post, Top 3 Reasons Not To Become a REIN Member, Yaro’s teachings have been instrumental to me. He has taught me pretty much everything I know about blogging through his Blog MasterMind Program.
Yaro wrote a great article recently titled, 3 Limiting Beliefs You Must Eliminate From Your Mindset. It was this very article that inspired my blog post today.
So here we go… Here are the:
Top 3 Limiting Beliefs of Aspiring Real Estate Investors
3) “I am not prepared to deal with midnight calls”
One thing that seems to really freak out aspiring real estate investors is the midnight call from tenants. If you polled 100 experienced real estate investors, I bet you that at the very highest 2 or 3 investors would tell you that they ever got a call in the middle of the night from a tenant. The fear of a midnight call is what scares off wannabe real estate investors. They are so afraid of dealing with potential tenant issues, and they think that it is normal to get calls from tenants in the middle of the night.
This is a limiting belief that prevents aspiring real estate investors from taking action. As a successful real estate investor, you have to work in managing many different aspects of your real estate business. Part of this involves managing the relationship you have with you tenants. Being proactive with your tenants and dealing with tenant issues when they arise earns you respect by your tenants. If your tenants respect you and are confident in your capabilities, even if there was an issue that came up at midnight, they would probably wait until the morning to contact you. By the way…what do you classify a midnight issue as???
2) “I am not a handy person”
You do not need to be a handy person in order to be a successful real estate investor. I am pretty bad myself when it comes to being handy. At the beginning of my real estate investing career, I struggled terribly with trying to complete repairs myself on a few of my rental properties. Once I made the realization that I did not need to be handy, and that I could outsource this work out to someone that was, I was able to grow my portfolio, and focus on buying properties as opposed to completing repairs.
The long story short here is that it doesn’t matter if you are handy or not. To be a successful real estate investor, you need to learn how to leverage on others that have specialized knowledge in certain areas. A Handyman is someone who has specialized knowledge in knowing how to complete repairs and do maintenance on properties.
Learn to leverage on people that are smarter than you in specific areas. This is the secret to becoming successful as a real estate investor.
1) “Real Estate is risky”
Sure…I definitely agree with you here. Then again, so is crossing the street. No matter what you get involved in, regarding investments, there will always be an element of risk. If there is a chance for a greater return on your investment, the risk will be higher. Conversely, if you are receiving a low, predictable rate of return, the risk will be low.
Bottom line here is that some people never end up taking action because they are always afraid that the ‘market is too risky’. In order to combat this fear, you must educate yourself with regards to the market you are choosing to invest in. Knowing your market and the local economy is key. If you are investing in a declining market with limited job growth, then yes I agree with you….the market here is risky.
Far too many people give up on the idea of investing in real estate simply because they can’t get over the mental block that the ‘market is too risky’. The more you take the time to learn about real estate an the ‘risky’ markets…the more you will realize that you have to take steps in order to mitigate any potential risks. One form of mitigation can simply be, knowing your local economy, and knowing the major employers in the area. By knowing this, you will be able to ascertain if the local economy is prospering or not.
People that I have seen that have gone from owning one rental property to owning one or more rental properties in a short period of time have been able to do this because they have NOT allowed limiting beliefs to hold them back.
They were aware of the risks involved with investing in real estate, however, they did not let this information paralyze them from taking action.
If you can figure out that you WILL have limiting beliefs, and that it is your JOB to fight past these limiting beliefs…I am excited for you because you understand the principles of success.
…not many people do.
Best Regards,
Neil Uttamsingh
PS: Keep up to date with my blog by entering your e-mail address on the LEFT hand side of the blog. To receive The First Rental Property Newsletter, enter your e-mail address on the RIGHT hand side of the blog. In the newsletter, experienced real estate investors will share with you how they purchased their first rental property. They will also share with you some tips and tricks to help you get started.
