Fear can be a powerful motivator. It can also hold us back from being all that we can be. Achieving anything when we’re afraid of moving forward is no easy feat: but making decisions and moving ahead in spite of our fears is often necessary for success!
When it comes to investing in real estate, you will have moments where you’ll be afraid. Whether it’s risk or uncertainty, fear can make it incredibly difficult for you to know when to take the plunge and when to hold back.
Overcoming fear is harder for some than others—especially if you’re prone to anxiety or worry. But when it comes to your investments, you can’t afford to be fearful. You can only afford to be smart. Here’s how you can begin to overcome the fears that are holding you back from financial freedom.
1. Learn What You Can
Oftentimes, we’re fearful because we don’t know. We don’t have all of the information. Fear often stems from a lack of information, and if we don’t understand, we’re afraid. In many cases, the best way to dissolve fear is with understanding.
Sit down, organize all of the information you have, and try to fill in the gaps where you don’t. Remember what they told us in elementary school: knowledge is power! If you have knowledge, you’ll be able to make informed, solid decisions that are rooted in facts, not fear.
2. Reject Micromanagement
Fearful people are the best at micromanaging. They don’t know how to let go. They enjoy controlling the little details and knowing what’s going on every second of the day. If you don’t think you’re a micromanager, think back to the last time you felt fearful about something in your real estate investment career. How nitpicky did you get? How many people did you pester?
When we’re unsure, yes, ask question. Get details. Be thorough and do your due diligence. But there’s a line that crosses over into obsessive micromanagement that will just drive you insane! It will make you more neurotic. Don’t let that happen.
3. Build a Network of Support
One of the best ways to combat fear is with people. Fear grows in isolation, when we’re left alone to spin our wheels in our own thoughts. A network of support, whether it’s friends and family or other professionals (though ideally, it’s a combination of both!), will help give you a space to work out your fears, receive advice, and find emotional support.
We need other people in our lives. Making financial decision is difficult, and knowing you have support behind you goes a tremendous way in moving forward.
4. Have Contingencies
Safety net. Safety net. Safety net. One of the surest ways to guard against fear is to prepare for the future. Don’t put all of your eggs in one basket. Play it smart. And don’t make decisions that you won’t be able to recover from if something doesn’t work out!
Do you have the cushion you need to recover if this decision doesn’t work out? Can you bounce back? What’s your plan B? While you don’t necessarily need to labor over a plan for every single possible outcome, you do need to plan and prepare.
Have a safety net and contingencies in place so that you don’t need to be afraid of the future, no matter what the outcome is. If you can handle whatever life throws at you, you have nothing to fear.
5. Learn to Recognize Red Flags
If you don’t know what you’re looking for, it’s a lot harder to discern rational fear from the irrational. If, on the other hand, you know exactly what is cause for alarm, you’ll know what fears are founded. You’ll know exactly when you need to walk away, and when you just have the jitters.
Learn to recognize when there are real red flags about a property, a deal, or a partnership. If you know what warning signs there are, you will be able to avoid bad situations.
Investing in real estate is thrilling and incredibly, incredibly rewarding! If you do your due diligence and plan well, you don’t need to be afraid of what’s to come. Play it smart and let yourself be excitedabout the future.
Having a reliable, knowledgeable partner in your real estate investments builds confidence!