Do you feel ready to invest in property, financially and mentally, but for whatever reason, you can’t seem to pull the trigger?
I have seen ‘analysis paralysis’ stop dozens of would-be investors from buying into fantastic opportunities, because they have over-analysed a deal and ultimately talked themselves out of it.
The problem here is that fundamentally, they don’t trust their own judgment, which stops them from moving forward. It’s a very common problem with investors and it can have a serious impact on your financial goals – particularly when you start looking back in hindsight, realising all of the opportunities you’ve missed out on.
I’ve had many clients like this and the biggest challenge I am faced with is reassuring them that their due diligence is correct and that it’s time to make the purchase.
Because I’ve personally experienced the financial results that property investing can achieve, I am an eager beaver – once I’ve crunched the numbers, completed my due diligence and settled on a purchase price, I’m ready to be decisive and take the next step, pronto.
I can understand, though, how new investors can be uncomfortable with the idea of putting their money on the line and backing themselves financially.
I must say, I get the biggest buzz when we work together to get them over their analysis paralysis and they purchase an investment property. It’s truly a celebratory moment!
The funny thing is, I find that they often become unstoppable once they have mastered the art of moving past their anxieties, as they usually go on to build a portfolio of properties.
A perfect example of this is a client I had, was who absolutely exceptional at performing due diligence. What let her down, however, was her ability to translate her research into action. She had trouble ‘pulling the trigger’ and as a result, after 12 months of ‘researching the market’, she still hadn’t bought one property.
On one particular deal, she hesitated to proceed, as she felt she had not covered everything and was looking for confirmation of her own due diligence.
As always, she over-analysed the area and the numbers and started to doubt her abilities.
Now, I had been doing my own due diligence on this area, and I knew from my own research that it had legs. I encouraged her to go ahead with the deal and held her hand through the entire process – including a number of after-hours phone calls when she became convinced she’d done the wrong thing.
Had it not been for my coaching, she would not have proceeded with the deal. It’s a good thing she did, as it turned out to be very profitable for her.
Once she got over the hump and purchased her first property, there was no stopping her! She went on to purchase that property and two more properties the following year, and eventually built a multi-million dollar portfolio.
If you find yourself in a place where you’re unable to move forward, it’s usually because you’re unsure or have a fear about something. No one wants to make a mistake, particularly when it comes to investing hundreds of thousands of dollars.
To overcome this I suggest you write down exactly what it is that you’re concerned about – and then map out a solution for each problem. Think about the “worst case scenario” and list all of the things you could do to rectify the situation. if your worst-case scenario was to come true.
Fear is usually the biggest obstacle we experience and knowledge and action are usually the solution. If you fear making a mistake, it may be because you are missing a piece of information that will help you overcome the fear. Instead, try using your fear to fuel your quest for knowledge and then take the necessary action to achieve the result you desire and deserve.
Helen Collier-Kogtevs is the Managing Director of Real Wealth Australia, a leading education and mentoring company for real estate investors. Not only is she a highly successful property investor and an educator, but also a best-selling author, and a philanthropist.
Helen is particularly passionate about helping people, especially people who are keen to create wealth and make a difference in their lives, and she has been mentoring thousands of new and experienced investors in their pursuit of wealth creation through property.
She founded Real Wealth Australia to mentor investors create wealth and financial freedom by focusing on helping them build an investment strategy to fit their individual goals, rather than focusing on one particular investing method using her successful “10 Properties in 10 Years™” system.
Disclaimer: while due care is taken, the viewpoints expressed by contributors do not necessarily reflect the opinions of Your Investment Property.