Emotions and lifestyle are key motivators and de-motivators
If you’re reading this blog, it’s probable that you’ve been thinking about investing in property for a while, maybe even years. It took me five years before I plucked up the courage to make my first property investment. I was scared. No, strike that. I was terrified.
Looking back and thinking about it now, throughout those five years I kept revisiting the same five reasons not to invest. Knowing what I know now about the property market, supply and demand, and buy-to-let investments, I call these reasons for not investing my five insane excuses.
In this post, I’ll tell you what stops the majority of would-be property investors from taking that first step to building a profitable property portfolio. There the same fears and emotions that stopped me from making my money earlier.
1. I wasted too much time on learning and not doing
They say that knowledge is power. It is. But there’s only so much knowledge you can absorb without revisiting old ground time and again. When I was starting out in property, I hit the books. I sat in on lectures. I visited numerous seminars. Almost every weekend was consumed by learning. After two or three years, I realised that I was going over old ground again… and again… and again.
Not only had I wasted thousands of dollars on real estate education that I no longer needed (I knew what the lecturer was going to say before he did), I was wasting time, too. I should have been analysing opportunities and evaluating cash flow projections. Instead, I was staring at whiteboards and revising my notes.
The truth is that I had no confidence in my ability back then. I hadn’t been there, seen it, or done it. I hadn’t worn the t-shirt. This only changed when I found myself a mentor and started on the practical rather than the theory; when I saw the property market in action in the field, instead of having a picture painted on a page.
2. I never had enough money
I kept telling myself that I didn’t have the money to invest. In truth, I was scared that I’d make a bad investment and blow what money I had. I’d already made the decision I was going to invest in property. What I should have been doing was asking myself how I was going to get the money to invest, instead of constantly using the lack of funds as an excuse.
In the end, it was my father who had a big hand in me moving from considering to doing. He told me he had confidence in me. He knew that I knew my stuff – it was all I ever talked about. I remember my dad turning around and saying, “Look, son, just get off your backside and buy something. Your mum and I will lend you the money to get going.” When he said that, I was left with little choice. I’ve never looked back.
(A lot of people start off investing in property with a helping hand from the Bank of Mum and Dad.)
3. It was never the right time to invest
One thing I’ve learned in the 20-odd years that I’ve been a proper property investor rather than a wannabe is that now is always the right time to invest. There’s always a good deal to be done. You simply have to know how to read the market, predict property prices, and negotiate great deals.
(See the investment blog on how property investors negotiate below market value property deals.)
(Download our free eBook “Property Market: Property and Economic Trend Cycle” to discover how to tell what stage the property market is trading and how to develop strategy always make a profit.)
4. I could never find the killer deal
I didn’t know where to look and was never confident of my research. Eventually, instead of relying on estate agents’ windows, I started searching auction houses, developer’s websites and linking with property investor networks.
Soon I was getting plenty of potential deals. Then it was simply a question of putting all that education abut property research into action to make certain the potential matched expectations.
5. I didn’t want to be a landlord
This was a big one for me. It is for many would-be buy-to-let investors. The point of investing is to improve your lifestyle. The last thing I wanted to do was to take on another full-time job. My advice is to leave property management to the professionals. You can deduct the cost for tax purposes, and your time will be your own to pursue the next profitable investment opportunity.
So there you have them: the five insane excuses that stop most people from becoming successful (and wealthy) property investors.
Which are stopping you from getting your foot on the ladder of property investment?