Much is made in the real estate world about educating yourself and gathering as much knowledge as possible. There is certainly no arguing that education is important, but sooner or later you need to put this education into action. You can have all the book smarts on a particular subject or field, but you will undoubtedly learn more in one deal than you will from anything you read. There may be some bumps in the road along the way, but these bumps will end up being nothing more than valuable learning experiences. If you don’t take the step and take action, all of your education won’t do you much good.
Taking the next step in any business is nerve wracking to say the least. Whether you are talking about a job promotion or a change in career, having the courage to act is not an easy thing to realize. Like anything else, with repetition you will feel more confident and have a much better understanding about the business. The goal of any education is to be prepared to use it in moments of chaos. Investing in real estate is no different. You want to have a knowledge base so that you can think on the fly, regardless of what is thrown at you on a deal. Having this knowledge is helpful, but knowing when and how to use it on every deal will produce real results.
The biggest reason that new investors fail to act is the fear that they will not be successful and will lose their savings. While you can certainly lose money on any given deal, the reality is that it is very difficult to do so. You would have to completely misread the market or find a substantial defect on the property after you bought it. It happens, but it is certainly more the exception rather than the norm. Getting involved in a deal that you make only a minimal profit on can be the best thing you can possibly do if you are just starting out.
You can watch poker on TV for three days straight, but being at the table and in the middle of the action is a completely different experience. The same analogy can be used in investing. You can watch and read everything possible, but the real world excitement and experience of an actual deal are no match. It may take a deal or two to get by the initial fear and worry, but once that passes, you can then concentrate on making money on every deal. It is OK to lean on your realtor and attorney during this time until you feel confident. This is what they are there for and will help guide you until you know what you are doing. If you have an investing mentor, this is a good time to ask questions and remember the process. Every experienced investor got their start just like you years ago. It won’t be comfortable for some time, but the sooner you get started, the sooner you can start to make money. Getting started is always more about action than education.