As a real estate investor, there is a very fine line between preparing yourself and waiting too long for the perfect market. Most investors will tell you that there is no such thing as the perfect time to invest. Of course some markets are better than others, but they are constantly changing and shifting in their own unique ways. If you wait too long or try to time it perfectly, you will surely miss it. However, if you dive into the business blindly, you are asking for trouble as well. You need to be prepared enough to know what you are getting into and confident enough to act. At some point, if you want to get involved in the real estate world, you are going to have to take that next step.
This may be hard for some investors to comprehend, but there are going to be risks associated with every investment. As much as we would like to find them, there is no such thing as a risk free property. Even the seemingly safe deals have some potential downside attached. Once you know and accept this, you can enter the investing business comfortable with what you are getting into. This doesn’t mean you have to get involved in speculative deals with a high risk and high reward. This just means that you can’t wait around forever for an ultra-conservative deal that will make you millions.
Every real estate market offers different challenges to investors. When things were going great last decade there was increased competition among investors. When the market collapsed and foreclosures ruled you were forced to deal with the red tape from lenders. In today’s market there is a decrease in inventory and closing deals is harder than it has ever been. The point is that every market has its own unique set of challenges you will have to overcome. If you want to get started, there is no better time than now. Just as there are negatives with every market, there are also positives as well. Whatever market you are in could be ripe with advantages. You don’t want to say that you wished you would have started years ago while you were waiting for rates to go down or home prices to rise. The sooner you get started, the more experience you will gain.
Another common excuse made by investors is that they are waiting to time the market. Trying to time the market is akin to trying to predict what the next number of a roulette spin will be. You have some information based on what has happened in the past, but essentially you are gambling on future results. There is a big difference between gambling and investing. When you try to time the market and buy at just the right time, you need multiple variables to go right for you to profit. If a buyer gets delayed for 30 days and is forced to back out of the deal, you are now left with a property that has seen its window close, and you are forced to scramble to break even. You can make money in any market if you have the right education and right contacts. If you wait for the right market, you are putting all your hopes that it stays that way. This is a risky proposition.
There is nothing wrong with gathering information and opinions before you start, but you should know who is giving it. Real estate investing is ripe with amateurs that will have an opinion on how to do things. There are multiple exit strategies to utilize. What works for someone may not work for you in your particular market. There will always be conflicting and differing opinions. So if you wait until everyone gives you a growing review, you will never do a deal. Most deals are time sensitive and will require you to make a quick decision. You can’t wait for people to get back to you or to give you their take. Trust yourself and if you see an opportunity take it.
Signing the contract on your first investment deal can be a very nerve wracking experience. Since there is no such thing as the perfect deal, there will be anxiety until you close and start to build a portfolio. Getting to this point requires you to take a leap of faith and get started. There is no perfect deal or perfect time. Instead of making excuses, you can start gaining experience. Arm yourself with education and go to as many investment club meetings as possible so you will feel comfortable when a deal comes your way. Every experienced investor has a first deal. The longer you wait, the more opportunities that will pass you by.