Taking the first step is often the hardest part of investing in real estate. Even savvy investors who understand the value of holding real estate in their portfolios can be hesitant. They may be concerned about the time commitment involved or be paralyzed by fear of failure. If you want to get started in real estate investing, this article will help you overcome mental barriers and help you find opportunities in the real estate market.
Meet with people who have experience
Confucius once stated: "By three methods we may learn wisdom: First, by reflection, which is noblest; second, by imitation, which is easiest; and third by experience, which is the bitterest." The easiest way to gain wisdom, according to Confucius, is to meet with people who have already gained experience. A mentor can make you feel at ease and give you wise advice. They may even be willing to invest their time evaluating some of your first few deals, in an effort to spare you from making some of the same mistakes they have made.
Start small
There is no shame in beginning slowly. If you don't make money with one small investment, making your next investment bigger won't alleviate the problem—it will magnify it. Starting small will give you the opportunity to find out whether real estate is for you without the risk of significant losses.
Find a partner
What a great opportunity to share in the burden. The writer of Ecclesiastes once made reference to this burden by stating, "Two people are better off than one, for they can help each other succeed. If one person falls, the other can reach out and help. But someone who falls alone is in real trouble." Partnering with other investors allows you to start small and also invest in larger projects by using the collective funds of your partners to finance a property.
Don't see short term failure as a bad thing
John Maxwell, author and leadership expert, says in his book Leadership Gold, "No one ever sized people up more accurately than the person who invented the pencil eraser." Mistakes are a part of life. Even successful real estate investors are not immune. Just because you make mistakes in the early years of investing doesn't mean that you aren't cut out to be a real estate investor. Psychologist Joyce Brothers puts it this way: "The person interested in success has to learn to view failure as a healthy, inevitable part of the process of getting to the top".
The intrinsic value of the property that is being offered in the residential sector, along with current interest rates, is something we may never see again in the modern era. Fear should never keep you from being able to capitalize on any opportunity to reach your personal financial goals. Remember: "The opportunity of a lifetime, only lasts in the lifetime of that opportunity”.
Matthew currently serves as managing member of Magnolia Partners, LLC, a HomeVestors of America, Inc. franchise company; managing member of Longleaf Partners, LLC a private portfolio of single family rental properties; and is also currently active managing member of Golden Key, LLC a property management business that specializes in partnering professional real estate investors from all over the country with Birmingham, Alabama real estate investments.
