There are thousands of investors who, for one reason or another, are standing on the sidelines waiting for a reason to get started in real estate. For every investor that takes the plunge, there are nine others that will make a myriad of excuses as to why they do not or cannot get started. In reality, if you really want to do something you will find a way to do it. Most of the time the excuses we make are easily rebuffed. There is no better time to get started in the business than right now. If you have made excuses in the past, here are some ways to get past those initial obstacles.
The most common reason potential investors fail to get started is the cash component. Too many people think they do not have sufficient funds to get started. However, if you find a good deal, money should be the least of your worries. A hard money lender will always want to fund a smart investor with a good deal. If you are active in your local networking groups there are multiple ways to find money. Between friends, family and coworkers, you can probably find at least one person with money that is willing to invest it. Additionally, there are many more private money lenders available than ever before. If you use your contacts, you can quickly get introduced to numerous private money outlets that will let you utilize their capital. You don’t need cash to invest, but you do need to be willing to find deals.
Another common excuse is that there are not enough deals in the area. There may not be too many five figure deals, but odds are there are plenty of solid investment deals to get you started. Instead of looking to hit a home run, you can look to hit as many singles as possible. You should also look at sources and ways of closing deals that you may not have originally thought of. If you are focused on using the MLS or Craigslist for deals, your options will be limited. You need to attack your market and look at as many different sources for deals as possible. Deals won’t just fall into your lap. You need to go out and get them.
Watching a 30 minute infomercial or your favorite home flipping TV show may get you excited, but it doesn’t make you an expert. Many would-be investors are apprehensive about investing because they feel they don’t know what they are doing. To combat this you should inundate yourself with as many real estate books, articles and websites about the business as you can find. This, in addition to just showing up at investment clubs and meetings, will give you a solid knowledge base to get you started. The most successful investor you know got started without knowing everything about the business. Pick one niche or one area of the business and make it your expertise. You will never know everything, but as long as you know the process you will have enough to get started.
Not having enough time to invest is another popular excuse. Between work, kids, social life and activities, it is easy to get stretched pretty thin. However, if you take a close look at yourself and how you spend your day, you can probably find at least two hours where you can dedicate to your investing business. Cutting out TV or staying away from your favorite websites alone will probably give you the time you need every day. Additionally, the advent of technology has made it easier than ever to find the information you need. Like anything else you really want, you need to sacrifice for it. This could mean staying up a little later every night, cutting down on your TV watching or getting in the car for a few hours every weekend. If you really want to be in the business you can find the time.
There are many horror stories from landlords and fellow investors about how bad the real estate business is. For every story you hear from a disgruntled coworker or burned family member, there are dozens of success stories. The real estate business is no different from various other forms of investing in that there is some degree of risk involved. It also takes time and dedication. One bad tenant does not mean that all rental properties will be a nightmare. If you listen to anyone, in almost any profession, you will hear some downside. The truth is that the business is what you make of it. You should never avoid it based on someone’s opinion. There is always a chance of a bad deal or a bad property, but if you do your homework there is a much greater chance that you will have success.
Starting anything new can be filled with great stress and apprehension. The real estate business is no different. You can make excuses and justify not getting started, or you can find solutions to your problems. Most investors get their start the same way you did. It is easy to make excuses and say why you can’t do something, but once you turn that corner and get started you will be glad you did.