Show161: Overcoming stage fright with investing

The Rental Rookie Podcast

It’s the 11th Day of Christmas

Stage fright.

Have you ever felt this?

When you’ve worked so hard at something (dance, piano, athletic event, choir concert)

you’ve put your blood, sweat and tears into really mastering the skill so you can perform well.

And you get to the event…..and your slammed with stage fright.

It can totally inhibit your performance.

Fill you with anxiety and fear,

Even when you know you’ve done the work to get out and do your best.

Some of us can push through and face that stage fright head on …..

…while others can’t.

I see this same ‘stage fright’ happen with newbie real estate investors.

They’ll spend months and years learning, reading, listening, mentoring with seasoned real estate investors.

They’ll listen to podcasts.

Read book after book.

Buy online courses to learn

Attend events

Find a mentor

Not just that but they’ll do the work to learn the market and master running the numbers and know what questions to ask.

And then it happens.

They find a potential deal that checks all of their boxes.

And the stage fright comes barreling in.

In our world we will often refer to it as ‘analysis paralysis’

The paralysis of moving forward and actually making the offer sometimes is so strong that it will paralyze newbie investors from ever taking action.

And this kills me.

I see smart, steadfast rookies who are determined to reach their goals stop just footsteps before the finish line.

And it comes down to fear.

Those fears and limiting beliefs pop back up and hold us back.

And what is important to realize is that even when you make the offer and get under contract there is still protection for you.

As a newbie investors making sure that you include the contingencies in the real estate contract are huge for giving you protection and peace of mind.

Home inspections protect you the buyer form anything unforeseen with the structure of the house that could ultimately make the deal bad.

Maybe there’s some foundational damage that you didn’t notice that would cost a ton.

Maybe some work hasn’t been done up to code and would require a heavy investment to fix.

These things that come up with the home inspection that are unforeseen give you the chance to walk from the contract if it would ultimately inhibit the deal and the numbers.

The appraisal contingency is in place to protect you from buying a property that isn’t worth the value that you are paying for it.

If you were to get an appraisal and find out that the property isn’t valued at what the agreed on sale price is and is lower you have room to renegotiate or walk.

The financing contingency is there to protect you if there’s anything that goes wrong in the loan process which would result in you not being able to get the loan you plan to use to buy the property.

But you have to be sure to include these contingencies in your contract.

And as a brand new investor…I would always include these for your own peace of mind and protection.

So don’t let the stage fright or analysis paralysis stop you from going after that first property and reaching your financial and lifestyle goals.

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