Are you wanting to get into property investing, but find yourself never quite doing it? Maybe aware of horror stories of 2007 /8 where people lost so much. Maybe riddled with fear and finding the voice in your head convincing you that it’s too complex, too risky and best left for now.
I have come to realise the power of mindset and I really mean the POWER of it. I have seen the place people find themselves when they both believe in themselves and in whatever they are doing and equally when they don’t believe in themselves or what they are doing.
I see when fear rises up in them and often witness it crippling them, controlling them and distorting their vision of perspective, of truth and of success. Property in my view is an incredible commodity that can, if done wisely with structure and purpose, be monumentally satisfying and financially rewarding. But many miss massive opportunity because of fear and are eluded to the above never quite stepping into property as it consumes them before they even begin.
Let’s take a look at some of the fears you may have experienced and what can be done to overcome them.
Lack of confidence
Where does this come from?
I believe it is two fold.
Firstly a possible lack of confidence in yourself irrespective of whether you are dealing in property or any other sector.
Secondly anxiety associated to:
ii) knowledge (knowing all you need to know),
iii) understanding, (actually understanding what you know)
iv) and action, (the correct action to successfully create a portfolio that generates a passive income that makes a difference).
To be honest confidence is partly a choice. The opposite of confidence is doubt
and the opposite of Fear is Boldness.
We can choose to push doubt away and be bold.
Confidence is also a feeling or belief that one can have faith in where we have the ability to rely on someone or something.
How though do we overcome Lack of confidence?
If it is lack of confidence in self, it is wholly associated to mindset. Learning truth about who you are and who you’ve been made to be, rather than what you have determined you are, based on what others have made you feel. What you say and write about yourself is massively important and much more so than what others say and write about you. For every negative thing you think about yourself, write down 2 positive things. If you want to paint the picture of your life, you have to take hold of the brush and it starts right now.
Lack of confidence associated to knowledge, understanding and taking action within property is overcome by firstly simplifying it all. Find people to listen to who don’t complicate the subject, take one step at a time, trust instincts and never be in a rush. Clarity and creativity are my favourite words in property and I believe the two go together, as I seriously believe it is hard to be creative if you are confused. Confusion will accentuate lack of confidence, so let’s gain clarity in everything. As a beginner you have an advantage as there is no past confusion associated to property. Therefore taking one step at a time with help, means you only have one area to gain clarity in at any one time. You then move on to the next step.
You do not need to be anxious about getting all your ducks in a row. Start putting people around you that do you good and not harm and allow confidence to rise in you, by not only doing the above but by doing property with others and not on your own.
Fear of Making a Bad Property Investment
It’s understandable when you start so don’t be hard on yourself. Property investing involves money, sometimes our own money and sometimes others money and that in itself can cause anxiety. Understanding ‘good debt’ and ‘bad debt’ is something many dealing with money as a profession don’t even understand so if that hasn’t been taught to you, fear stirs purely out of lack of knowledge.
Where money is concerned, the fear of getting it wrong and losing it due to poor judgement or mistakes due to lack of knowledge and experience, can stop us from moving forward as we often make the decision that it’s all ‘too much’ and not worth the risk.
So What can we do to Not Fear Making a bad property Investment ?
Due diligence is absolutely the topic you need to spend the MOST amount of time on and understanding how to do that in a systematic way (never second guessing what you should be doing), will irradicate a lot of your preconceived fears.
Understanding area versus strategy and what that actually means and then understanding how to simply stack a deal – (determine if it works or not), will give clarity, that intern creates confidence that really will mitigate fear.
Fear of having to do everything
This happens when people struggle with relationships, or fear spending money. If their attitude is bad, people won’t want to work with them and when stacking a deal if they base profits on doing everything themselves, (because they want to save money), they end up having to doing it all and often wishing they hadn’t. Most of the time we aren’t capable of doing a good job in every area of property and much can go wrong if we try, often ending up with anything from mediocre to terrible results. Depending on our skill sets we may need help in anyone of the areas within property, such as finding deals, stacking deals, talking to agents or vendors, dealing with solicitors and brokers, doing or organising refurbs, finding tenants, looking after tenants, refurbing /decorating or collecting rent plus much more.
So How do we get past feeling the need to do it all and thus making a rod for our own back at the start of our journey?
Firstly you need to understand your skills, the bits of property that resonate with you, that rock your boat. Areas that cause passion to rise in you and make you want to do more of it each day. You need to accept what you are good at and also what you are not good at. A classic example is decorating. I know of so many people that saved money by decorating a property themselves, not truly understanding that the finish to a room can be what fills it or doesn’t fill it. Painting it yourself badly may save money initially but loses a lot more if the room doesn’t fill.
So never believe you have to do it all. You are putting a heap of pressure on yourself before you begin. Remember it is a journey and you take one step at a time. It isn’t a leap. It really can be fun but you deny yourself that possibility if you decide everything is up to you.
Fear is all consuming but the exciting thing is, it can be sorted against property, not just parked ….. but irradicated, so I urge you to ask for help to do this, so that your journey can begin realising that Risk analysis is a choice over fear and that part of moving off that starting block is deciding between the two.
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