So you’re interested in investing in real estate, but you’ve got some fear holding you back.
Investing in real estate is a major decision, and the fear you’re experiencing isn’t all that uncommon.
Many people are afraid of losing money. And many people get anxious over something potentially going wrong with a tenant, a partner, or the deal.
However, a little nervousness about the situation at least shows that you care about the investment.
If you are a bit fearful than you are much more likely to check over everything thoroughly. Those who aren’t the least bit fearful tend to make rash decisions that they might later regret.
However, if your fear is so strong that it’s freezing you from acting, then we have a problem.
But, acknowledging the fear is the first step. Once you come to terms with the fact that fear is what’s blocking you from acting, you can make a decision.
You can either run from this fear (bad idea) or face it head on and take steps to get rid of it (good idea).
Hopefully, you like the sound of the second option.
So what steps do you need to take to get rid of the fear?
In order to conquer your fear, you need to follow some wise investment tips. These tips will help you feel more confident and prepared for your decision.
Where do I find said investment tips?
Read this article to learn the top three investment tips that will help you conquer your fear and take action!
Are you sitting on your hands afraid of investing even when the market is ready? Here are three investment tips to help get you over that fear.
Investment Tip #1: Find the Property at 70 Percent
Yeah we know, this one sounds a lot easier said than done.
Where are you supposed to find property at 70 percent? Who is even selling property at 70 percent of the market value?
(Note: 70 percent of the market value means, for example, you purchase a house for $50,000. Then you put $20,000 into fixing it up. So technically, you spent $70,000 on it. You then sell it for $100,000).
Actually, you’d be surprised.
Those properties are most definitely out there, and there are people scooping them up as you read this.
So where do you find such lucrative deals?
By going online and looking for wholesale deals. Wholesale properties are those which are marketed with the intent of the investor purchasing it and then investing in it to either rent or resell.
Go online and search for wholesale deals, wholesale properties, or wholesale sellers in your area. Trust me, you will get a ton of results.
Another option is to drive around neighborhoods you like and look for “for sale by owner” signs. Often these people are desperate for any sort of offer on their property. Go knock on their door and see what you can work out.
Your third option is to look for properties that fit this criterion on a multiple listings service.
These are real estate portals where you can find real estate listings for sale by realtors and other real estate professionals.
When searching for properties, use keywords like “investors only, or “cash” to narrow your search. Most likely, if the seller describes the property as needed some TLC, then it’s what you’re looking for.
Ask a realtor buddy or family member to help you set up your search criteria. Then, sign up to get automated emails every morning of properties that suit your needs.
Investment Tip #2: See the Property in Person
So, you found a home at 70 percent that you’re really interested in.
Your nerves are starting to fade and you’re getting excited about taking the deal.
Well, before you get too excited, you first need to look at the property. And I mean thoroughly look at the property.
Go see the property in person and make sure you won’t be spending more on your investments than you originally planned. Better yet, bring a professional contractor with you so you to ensure your estimates are correct.
The last thing you want is to invest in a property and then end up breaking even, or worse, losing money, after all that hard work.
Take this step seriously and don’t be afraid to seek multiple professional opinions as well.
Investment Tip #3: Fund It and Cash Flow It
Ok, so you’ve found the property that fits the 70 percent purchase rule, you’ve seen the property, and you’ve had the property inspected by a professional.
Now, it’s time to talk about funding.
You need to come up with the money to buy it. And, you need to act quick. Because trust me, someone else is looking at that property too. If you hesitate and spend too many days thinking it over, you’ll lose it.
Luckily, since you’ve done your homework, finding a lender shouldn’t be a problem. Go to a local community bank, family member who is interested in investing, or a hard lender.
When they see what your paying and what you’ll be able to sell it for, it should be an easy yes for them.
It’s important to plan for success at this step. Come in with confidence, expecting your lender to say yes. Have exactly what you’re going to say all planned out so they can see that you’ve done your research and that you know what you’re talking about.
Now, once you’ve got your lender on lockdown, it’s time to cash flow it.
Here’s where it’s important to stay steadfast to the 70 percent rule. Make sure you are only making the necessary investments to fix it up.
You may be tempted to put a little extra money into the property in order to sell or rent it, but trust me, you don’t need to do this.
There are plenty of people looking to rent or buy at wholesale. So once the repairs are done, stop.
As soon as it’s fixed, it’s time to flip.
Investment Tips: Bottom Line
Following these investment tips is a surefire way to help you get over your fears and take action.