This is the same old subject that everybody talk about. Yet, I still see it happening everyday with my own eyes so I will blog about it again. Hopefully I can save someone from forever doing analysis and not getting started
It is absolutely necessary to do your home work and understand the investment before you make your 1st move. However, I often see people attended tons of investing seminar, go to countless events and made tons of connections. Yet, they have not make a single investment purchase. Why?
I am sorry to pick on this – get mad at me if you want, but can you point out to me a single guy or gals with a PhD degrees in Economic that invest in real estate, or even anything? Go to the economic department of your school and ask your professor if he or she is an investor. I can tell you that more than likely he doesn’t. and here is why: because he read too much, and didn’t have time to practice what he read in real life.
I can’t forget the 1st day I register for the Stock Option Class when I was in school. I was so excited because I thought my professor is a master in option trading and he must be making load of money and I can learn from him. It turned out, he is just a typical clumpy professor who know everything and anything about Stock and Option trading theory, but has yet make a single trade!
I asked myself, what the “Pho”? I should have dropped the class but somehow I didn’t. I spent that semester study about some BS Option Theory that I can never apply in trading and wasted so many hours that I can never get back.
This is what we call Analysis Paralysis. People somehow get caught in the loop of education and thinking that they must know everything before making a move. The problem, especially in real estate is that you will never, I repeat, never learn enough. Real Estate is a board subject with endless learning curve. The moment you think you know it all, there will be a next level. The key is to learn enough to get started, then keep on doing and learning together.
I remember on my 2nd investment, I still don’t know a thing about Property Evaluation, or know a single guy that can fix up the house, but yet I still commit to buy it. I was scared to death if what I am doing is even right. However, I don’t let that fear stop me. I would wake up at 4:30 AM, went to work on the house til 7:30, went to work then came back 5:30 PM and working on the house til 9PM. I pushed and pushed, basically do whatever it takes to get the house ready for lease. Fast forward 3 years later, I owned 19 houses with friends and families and formed a team that I can relied on.
As time come, you will naturally and eventually grow then graduate to the next level. The key is to get started. The key is just do it. Start small if you can and learn by doing it, not only by reading.
I hope I motivated you enough. Now please drop of your book and start making some phone call to see some properties!