3 Ways To Reduce Anxiety About Investing In Your First Real Estate Deal
Written by: Amelia Harshfield, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
You probably have heard of the great things that can come from real estate investing. Forbes shares that real estate is more trusted than other sources to grow wealth. There are lots of people who have become wealthy just by investing in homes. However, investing in real estate can be a gamble. Between the ups and downs of the market, the unseen repairs required in real estate, the challenges with tenants, and knowing how to make money, there can be lots of ways to lose money. Even season investors can be in over their heads easily on properties.
What can keep you on the sidelines of real estate investing is fear of the unknowns. You might not know where to begin. You might believe you need to be a renovation expert to purchase your first deal. You may be talking yourself out of the deals while looking at the numbers. If you knew how to quiet your fears, you stand a greater chance to make the best decision you can. Anxiety hinders your ability to think clearly and set yourself up for success.
The first way you can reduce anxiety before jumping into purchasing is to take a solid look at your capabilities with real estate. Look at what you know, try to identify what you do not know. Also, understand what you are and are not willing to do with the property before putting your offer in. Are you willing to paint the property? Who can help you if you want to go quicker? Do you know a good roofer? What do you know about the property’s foundation? Does the rent cover all the expenses plus some? If you are thinking about flipping a property, what numbers do you need to know? The more information you have the better prepared you will be heading into your first sale.
The second way is to learn what is helpful and unhelpful advice in real estate. People will have lots of opinions of what you should do with your first investment. People may tell you to turn it into a short-term rental. People may offer to be your property manager. Someone may come to you saying they have a homeless friend who is needing a home. People will be quick to tell you what they think you should do. Be cautious with these people. They are telling you what they would do with your property not trying to understand what is best for you. If you follow unhelpful advice, it may cost you thousands of dollars.
People who want what is best for you will try to understand what you are wanting with your property. They will ask you questions like:
What are you wanting to do long-term with the property?
What is your budget for repairs?
What have you stored away for unforeseen issues?
How much risk are you willing to tolerate with your property?
Are you planning on owning this with a business or under yourself?
These people are who will likely give the best advice, thus leading you to what you want.
The third way is to practice reducing your anxiety now. Issues will arise in real estate investing. The better you are at practicing your anxiety now the better you will be when they pop up. How comfortable are you with uncertainty right now? How do you currently handle financial hits? What is your reaction to money being tight? The more you can practice now at being calmer with money the better you will be then. The Becoming Resilient – Reduce Anxiety’s Impact on Your Life workbook is designed to teach you the process for lessening stress’ control on your investments. That way you can set yourself up for financial success while not having your emotions sabotage your investments. Click here.
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Amelia Harshfield, Executive Contributor Brainz Magazine
Amelia Harshfield is fascinated and motivated by what impact makers can achieve as they become more resilient. With a solid education and a master’s degree in economics, she has been creating passive income in Real Estate investing for over 5 years. Her key foundational work is The Overcoming Anxiety Method™, a powerful 4-step formula for playing a bigger game without being crushed by fear. This process is paramount to finding an authentic version of freedom and wealth. Mentoring and educating high-level operators is her passion, her work has been featured in magazines, podcasts, conferences, and she has been a trainer on Sir Richard Branson's Necker Island.
