Today, I am going to share with you the leading reasons I hear why real estate newbies or first-timers are having second thoughts of getting started. Real estate investing is not easy I can tell you from first-hand experience. Have to learn the ropes. Get to know the top reasons that somewhat hinders newbies from taking the plunge in the world of real estate investing.
1. Do Not Have the Funding
One of the main reasons that keep newbies from getting started is they don’t have enough funding or capital to start off. Well, it is not a surprise anymore because funding is very essential when starting to enter the world of real estate.
What I’ve always done is I always reverse engineer what I don’t have. When I got started, I didn’t have the funding or infrastructure to do single-family home deals in terms of a property management company, so I always determined not what the obstacle is but how I can be able to find a way to get to that goal.
If you don’t have enough money then it is always good to find someone who can back you up or have the capital. As from my own experience, the mentor I was working with didn’t have enough time to find single-family real estate deals, so what I did is I offered him my services for free in return I was able to not just the capital I need, but the learning starts.
2. Saving Way to Get Their First Deal
Right now, due to inflation and the cost of the purchasing power of the dollar going down it could take you years and that would just essentially be another excuse to save and get that first deal versus when you get partnered with someone to allow you to be funded from the get-go.
3. Finding Inventory that is Close By
Some newbies only look for properties that are close by or just within the area, which is a great way to start unless the prices in your market are too high. There are plenty of ways on how you can get through this obstacle and one solution is expanding to cities or markets for you to get good deals and prices. Don’t stop and be patient, you’ll surely get the deal you need.
4. Not Having the Marketing Budget
By marketing budget mean you don’t have enough startup cash to be able to promote of what you are doing, such as direct mail, pay-per-click along with other channels to get good real estate deals from a seller or owner. Again, there are numerous ways on how you can do this, and one of these is door-knocking. Cold calling is another perfect avenue to connect to prospects. You just need to invest enough time and energy to it.
5. Analysis Paralysis
Everyone has different methods and ways on how to learn or how to absorb new information and then taking action. As for me, I’ve always put a limit on myself for about a month to month in a half to learning and researching when I decided to transition from single-family to multifamily real estate investing. The whole point here is you need to set a timeline for you to learn things before you jump in. In this way, it would be easy for you to get started.
6. Family
One reason why newbies have a hard time to start is family. Yes, you heard it right; the family is often one of the impediments when one is planning to enter the real estate investment. Well, it’s understandable, perhaps they just don’t want to see you fail as real estate is challenging and not for the weak ones. However, if you have dreams and you are determined then you can succeed sooner or later.
7. Takes Time to Get Paid
Takes time to get paid is also one of the leading reasons newbies say they’re stuck from getting started. You need to have enough patience if you want to succeed in real estate investment. Do not expect that you will get paid right away when you get in the real estate.
8. Not Having the Necessary Time
Getting started in real estate requires one to spend enough time. There are various ways on how you can find time if you really want and determined to start. Since I was very interested in being in this space, I invested enough time to learn as much as I could. Not having the necessary time is not an excuse for you not to get through.
Finally, the above-discussed reasons are the typical whys and wherefores that prevent individuals from starting in real estate. Hopping into a new industry like real estate is challenging, but as long as you have the information you need, everything can smoothly go well. I am a firm believer in persistence and courage as it had helped me from what or where I am now today.
P.S.
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