I’ve talked a lot about now being a good time to invest in real estate. I’ve also talked a great deal about how anyone can be successful at real estate investment if they have the drive and are willing to learn. But real estate investing honestly isn’t for everyone. Here are five very real reasons why it may not be for you.
#1 You’re emotionally invested
If you’re considering investing because you fell madly in love with a property, because you’re psyched at the idea of flipping houses, or because you’ve been pumped up by the possibilities offered at a recent real estate seminar, it’s time to press the pause button.
Unless you want to lose a lot of money quickly, you have to take your emotions out of things. You have to do some cold intellectual research, and try to make your ideas work on paper. If you can’t, you don’t have to give up. You can take the steps necessary to get yourself in a position where they will work.
#2 Things sound too good to be true
There are a million “experts” out there who promise the moon, but are really only interested in selling you their material. Any person or program that tells you real estate is an easy, fast, low-cost route to wealth should be looked at with the utmost skepticism.
#3 You lack capital
The odds of you becoming wealthy in the real estate business with “no money down” are about the same as those of an unassuming waitress being discovered by an agent and rocketing to stardom. Meaning, it can happen, but the odds are really long that it will happen for you. Save your money until you have enough to really play ball. That will give you time to decide whether this is the right move for you.
#4 You have unrealistic expectations
If you think you’ll be making money hand over fist in a short time, you need a reality check. Investing is a job. It requires hard work, commitment and time. It may be several years before you start to see serious cash flowing in. But if you stay determined, hang in there, and learn all you can, you can be very successful.
#5 You have a low tolerance for risk
Do you order the same thing every time at a restaurant because you’re afraid to spend money on something you may not like? Does it take you hours to decide on a pair of shoes? To be in real estate, you have to be very comfortable with risk. You have to be able to ride failure well and learn from it. And you have to be able to make self-assured, level-headed and quick decisions under duress.
If you’ve considered all of these and you still think investing may be for you, welcome aboard! This is an exciting way to earn a living, and we can give you the real tools and guidance you need to be successful.
Kent Clothier is President and CEO of Real Estate Worldwide (REWW), a highly sought-after speaker, the owner of three multi-million dollar a year Internet marketed brands, and proud husband and father. Kent is motivated by his love of family and freedom, creating products that enable people to live their lives the way they choose.