When it comes to our money, many of us hesitate. It’s difficult to pull the trigger on big deals and jump in with both feet. We’d much rather dip in a toe first. We’re wary of the risk, afraid to take the leap. As real estate investors, we’re always acutely aware of the risk (as we should be), and that, in many ways, can prevent us from taking the chances we ought to.
Risk should not be solely a deterrent in real estate investment. With risk, there is almost always reward. When it comes to investing, as risk increases, so should the chance of greater returns.
While it’s essential for every investor to mitigate risk and weigh whether or not it’s personally worth bearing given one’s personal financial situation, there are some things that stand in our way of taking on necessary risk and becoming all that we can be as real estate investors.
A lack of confidence in ourselves, our partners, and in our strategies can kill success. These are five ways to beat your doubts and boost your confidence.
5 Confidence-Boosters for Real Estate Investors
1) Increase Your Education
One of the primary sources of apprehension in real estate investment is simply a lack of knowledge. If we’re unsure about a process, protocol, strategy, terminology, or just how this whole real estate thing shakes out for us in the end, it can be a source of anxiety. The cure is knowledge. This often plagues new investors and turnkey property owners who don’t take the time to invest in their role.
Increasing your education isn’t difficult. These days, there is a wealth of information just a few clicks away. There are high-quality blogs and podcasts out there for free, not to mention e-books and hard copy books that you can access instantly or through platforms like Amazon.
(Check out some of our recommendations here.)
If you don’t know, find out. Clarity will help bring you the confidence to make decisions and act with assurance.
2) Bond with Your Partners
In turnkey real estate investment, you don’t act alone. You have partners who help you along the way who are not only a source of information and guidance, but are essential in accomplishing the day-to-day operations of your property management. They make investing passively possible.
To boost your confidence as a turnkey real estate investor, you need a real relationship with these partners and providers. That means engaging in real communication with your turnkey provider and property management. A rapport and a relationship are so crucial!
3) Get to the Root of Your Mistakes
No one likes looking too closely at their mistakes. Most of us would prefer to move on and forget they ever happened. However, in order to come out of a situation with greater confidence, it’s valuable to really examine our missteps and break them down so that we can understand the why and the how behind them. The more we can root out the causes and chain of events that may have lead to these errors, the more we can prevent them in the future.
If we can equip ourselves to avoid future mistakes, the more confident we’ll feel moving forward. If we fail to face failure head on, we’ll be left fumbling around in the dark.
4) Make More Deals
Experience builds confidence. Only through making more deals, building your portfolio, and getting more experience can an investor truly build their confidence. As long as your real estate experience is “in theory,” doubts will remain. When you put your knowledge into practice and it is proved reliable, that is when you’ll truly begin to blossom into a confident and successful real estate investor.
The more you actually do, the easier it becomes. Failed deals and missteps may bring you to pause, they might wound you, but you’ll know that more often than not things work in this business. It’s proven. And that gives you the courage to press onward.
5) Get Engaged
One of the biggest mistakes turnkey real estate investors make is failing to engage themselves in the process. While turnkey investing is one of the most passive methods of real estate investing possible, it’s not entirely passive. No method of investment is—at least, not the ones that actually yield worthwhile results.
For turnkey investors, it’s so important to actually get involved in your own investment future. That means planning ahead and having a vision for yourself. It means having goals and communicating, discussing, and planning with your turnkey provider. It means closely communicating with your property management team so that you’re on the same page and in-the-know.
The more you do this, the more you can be confident that your investments are on the right track.
Want to build confidence? Start your investment career on the right foot.