A lot of the new and hopeful real estate investors I talk to are afraid to quit their jobs and take the plunge. Others, aren’t exactly afraid—they’re just a little bit overwhelmed and don’t know where to start. They can’t shake the idea that they don’t know how to invest, and so they feel like they’re going to make a big mistake if they try to get started right away. I have a few effective tips to get over this feeling so that you have the confidence to get started.
Understand That You’ll Never Know Everything – And That’s Okay
I’ve been in the house flipping business for years. I’ve successfully flipped thousands and thousands of houses. And guess what—I still don’t know everything there is to know about real estate investing. Probably the best thing about this business is that you can get into it without being an expert. If you understand the basics and you can recognize a good deal, you’re probably going to be able to successfully start flipping houses.
So, if you feel like you don’t know enough yet, and you still think you don’t know how to invest, the first step is to let go of needing to know every little thing before you get started.
Take Inventory of What You Do Know
Take some time to think about how much reading you’ve done and how many hours you’ve spent learning about real estate investing and, in particular, house flipping. If you add it all up, you’re probably going to be pretty surprised (and impressed) at how much homework you’ve already done.
With that in mind, start quizzing yourself on the whole process. The basic steps are pretty simple, and I’ll bet that you already know them:
• Find leads on flip properties.
• Do research on any outstanding liens or other debts on your potential properties.
• Talk to motivated sellers.
• Get a hard money loan or private loan.
• Bid on properties at auction.
• Rehab and sell your flip house.
See? You really do already know how to invest, so what are you waiting for? If you’re not convinced yet, you may just be afraid to take a risk on a property that you’re not sure will be a good deal. That’s okay, but you can’t wait forever. Instead, why not take the first step?
Taking the First Step Involves Zero Risk
The first step in this whole process is to start collecting leads. Doing this will cost you absolutely nothing, and it doesn’t require you to buy anything. When you start collecting leads, you aren’t taking any risks at all, just seeing what great flip properties are out there.
There’s no risk in the next step, either. Finding out if a property has any outstanding debts or liens is totally free. When you do this, you’ll start finding out what makes a good deal and what to leave alone, and before you know it, you’ll have taken the next step and the next, and you’ll be flipping houses with the best of them.
“I don’t know how to invest” is a pretty common excuse that people use when they’re afraid of taking a risk on an investment. I’m pretty sure I made that excuse for at least a few months when I first got started, too. However, once I got over it (using these tips), I found out that I knew a lot more about investing than I ever thought. Give it a try today!