Real Estate Investing: How to Avoid Analysis Paralysis and Start Investing
Real estate investing is a fast moving target. To be an effective investor it is paramount to do your diligence before investing. The world of Google and all the search engines in our wonderful internet has made it easier than ever to do this diligence. This ease of doing business has indeed come at a price. There is so much information out there at our fingertips that many people are stuck in the analysis paralysis mode. I have talked with wannabe investors for the past 2, 3 and 4 years as they aspire to invest. They keep looking deeper and deeper into investing as they want to know everything they can before taking action. I can assure you one thing. This is the very mindset that stalls you out. You will never know everything, I have been investing for over 35 years and I still learn new things every day.
Truth be told: The more information you acquire, the more confused most people become. At this point it is all theory; to truly understand this you need practical application. On the job training so to speak. You can read and read to acquire more information (more theory) it is practical application and experiences that will educate you the most.
Less is more: You need less theory and more practical application!
• Focus: It is easier to stay focused when you have a pre-determined objective. Simply googling terms will get you so much information you will be looking into everything and getting confused. Have a predetermined plan of what you want to invest in and stick to searches that identify this.
• Follow your gut: your gut instincts are usually correct: There are many gurus telling you many different things. Identify no more than 3 real estate professionals THAT YOU RESONATE WITH and call and talk to them person to person.
• Build a relationship: Building a wealth building portfolio such as real estate indeed requires you to build a relationship. People do business with people they know, like and trust. This is a 2 way street. As people feed you information reply to it to let them know you are engaged and do follow up. This will keep your real estate professional feeding you information. If indeed you are getting great information you are on your way , if you are not happy with what you are getting for quality content and information move on to the next., but stay focused and do not engage with more than 2 or 3 at a time as the influx of so much information will shut you down.
• Build your power team: As you find people you know, like and trust, build your power team.Your professionals, your real estate brokers, property managers, trade professionals etc. If you found the right real estate broker they indeed should have a power team already built up.
• Take action: Stay focused on the activity, take advice and recommendations from your Power Team and follow through. As you start investing with guidance from your Power Team, you will acquire more concentrated knowledge than you ever could imagine (and you will be making money as well).
Do not adopt the shiny object syndrome:
Stay focused and do what works for you. It may become compelling to invest into many different arenas, flipping, short sales, turnkey properties, wholesaling, tax deed investing. The expression “jack of all trades masters of none” comes to mind. All these variations puts you into the paralysis mode. Perfect your niche before starting another investment strategy. Chasing the shiny object can be a costly venture.