Hello Real Estate Investors in Hamilton, Ontario!
We have a special treat for you in the form of a guest post by my friend, client, and Hamilton real estate investor Neil Uttamsingh of FirstRentalProperty.com.Â As the headline states, this is all about fear and overcoming fear which all entrepreneurs must do on a regular basis.Â Enjoy!
Get Rid of Fear Once and For All
Fear prevents us from achieving our dreams.
We all have dreams.Â Some of us live our dreams and some of us donâ€™t.Â How different a place the world would be if we could all achieve our dreams?
Would the world be a happier place?Â Perhaps.
Would you be a happier person?Â Only you can answer that.
The interesting thing about fear is that it can be defeated.Â Those people that know how to defeat their fears are the ones that are able to forge ahead and achieve their dreams.
If you had the choice, what would you rather have?
The ability to overcome your fears and obtain your goals,
Remain fearful for the balance of your life, and take no action towards achieving your goals?
I am willing to bet that the majority of you reading this want to overcome your fears and achieve your goals.Â The very fact that you are reading this article is proof of this.
Letâ€™s Get Started
So far we have established that people have fears, and that fears hold them back from realizing their dreams.
What we now need to take a look at is what some of these fears are.
Further, once we have established what these specific fears are, you need to take some time for yourself and reflect.Â You need to reflect upon which specific fears are holding you back.Â Once you know which fears are your obstacles, you are better able to prepare yourself when you tackle these fears head on and break them down.
Fears About Investing in Real Estate
In my view, the majority of society does not purchase rental property for two reasons.
The reasons are simple:
1)Â Â Â They are not interested in owning rental property
2)Â Â Â They are afraid of the â€˜RISKâ€™ of owning a rental property.
The interesting thing about fear number 2 stated above is that there are commonalities in peopleâ€™s fears surrounding â€˜riskâ€™.
This basically means that people are afraid of the same things when it comes to owning rental properties.
This is great news!
It is great news because since we are able to identify the common fears that people have, we can analyze what these fears are and come up with strategies as to how to break down these fears.
Fear Number One â€“ Lack of Knowledge
New real estate investors always feel that they do not know enough.Â Some of them spend many hours researching potential areas to invest in.Â As well, they spend a lot of time speaking to experienced real estate investors.Â They tend to ask these experienced investors what their personal experiences have been.Â Also, in most cases, they will ask the experienced real estate investor for guidance as to what they should doâ€¦
For instance, the new investor will ask the experienced investor what property type they should invest in as well as what specific area they should invest in.
Although it is good to do your research and talk to experienced real estate investors, there is one thing that you need to realize.
You need to realize that you cannot know EVERYTHING.Â Even the most experienced of real estate investors does not know everything about investing.
As you embark upon your real estate investing career, you will continually learn from your experiences.Â I am a firm believer that the true learning associated with being a real estate investor only takes place AFTER you have purchased your first rental property.
Defeating Fear Number One
So please remember that you are not going to know everything about real estate investing at the very beginning.Â You have to do your own research in selecting an area to invest in as well as a desired property type.Â However, it is crucially important not to let a LACK of knowledge hold you back from investing in real estate.
Fear Number Two â€“ Making the Right Decision
Okay.Â So you have just defeated fear number one. Congratulations!Â You have come to realize that you possibly canâ€™t know EVERYTHING about investing in real estate when you are just starting out.Â You realize that there comes a time in which you just have to pull the proverbial trigger of action!
Okay, so what happens now when you are ready to take action, however you now begin to doubt your decision?Â Often this is when self-doubt creeps in.Â This is a time in which we begin to question ourselves as to whether we are making the right decision.
New real estate investors doubt themselves for a number of reasons.Â The list of reasons would be too extensive for the purpose of this post, as we would be dealing with the Psychology of the human mind.
However, plain and simple, new investors doubt themselves because they are afraid that they might be making the wrong decision.Â This fear is one of the most powerful fears as it holds many potential real estate investors back from buying their first rental property.
Defeating Fear Number Two
The most effective way to defeat this fear is to align yourself with people that support you.
Take on a close friend, colleague, or family member into your circle of trusted advisors and align yourself with them.
When you feel doubt about the real estate investment decision you are about to make, leverage on them to obtain support, motivation and encouragement.
Most importantly, not only do these people have to support you with encouragement and motivation, they also have to be supporting your decision.Â If they are not in support of your decision, you cannot align yourself with them, as their presence and contrary input will intensify your self-doubt.Â If they are causing you more grief than good, do not let them in as one of your trusted advisors.
In Part Two of â€œHow to Get Rid of Fear Once and For Allâ€, I am going to discuss how to overcome the following 3 fears:
Dealing with Repairs and Maintenance
Handling Non Paying Tenants
Neil Uttamsingh is the President of First Rental Property.Â He provides knowledge and confidence to individuals looking to buy their first rental property.Â Follow Neilâ€™s blog @ www.firstrentalproperty.com
What a great article. Surrounding yourself with people who will support you and guide you is essential in taking the first steps! For me it has been a slow process, but I was able to do so and buy my first property, then my second and now a third. Don’t let go of your vision and keep moving forward even if it means taking baby steps!!
That is exactly it. Baby steps are all that one needs in order to gain the necessary momentum required.
Taking continuous baby steps results in continuous forward momentum. Good things happen when you are moving forward, and closer to achieving your goals.
Unfortunately, not everyone realizes the tremendous value in surrounding yourself with supportive people, who will guide you.
A ‘support’ group creates a comfortable environment for the investor, where you can ask questions, obtain encouragement, and learn from the experiences of others.
Congratulations on your success as a real estate investor!
The important thing when it comes to getting rid of fear is to determine the real consequence of the thing you fear. When you determine the real worst case scenario, you can look at ways to mitigate the damage, and usually the fear is not nearly as big as we first make it out to be. Figuring out how you’ll deal with problems before they arise gives you the confidence to move past your fear.
“Figuring out how youâ€™ll deal with problems before they arise gives you the confidence to move past your fear.”
I especially agree with you on this. Being prepared tends to lower ones level of anxiety. When you are less anxious, you worry less, and are not as ‘fearful’ as result.
Fear does have a tendency of creeping back in at any time. However, if you are well prepared and you know how to deal with these problems that you face, it is very easy to squash these fears!
I personally put this in to practice not too long ago with a tenant eviction.
I had to figure out how to deal with certain problems before they presented themselves. I had to be very prepared. It was through my diligent preparation that resulted in me feeling less anxious about the problems that I was facing.
All the best,
Diane, Andrew, Neil, great comments! Thank you all!
Just to add to what was mentioned about ‘dealing with fears’
To deal with fears, I implement systems I’ve learned through personal experience and those taught at both REIN and the Rock Star Inner Circle. I happily share these systems with my clients and JV partners and have seen them deliver tremendous results.
In the end, all investors have fears and face risks, without risk there would be no reward. However the question is, are you going to let risk hold you back and if no, what are you going to do about it?