How to Conquer the Fear of Buying

Many people who have a fear of flying got that fear because of a bad experience. One time, the plane jerked and it was scary and caused a lot of fear later. I remember a time I was flying over Iowa and the plane, which had been going smoothly, people enjoying their free soda and single-serving pretzels, suddenly bumped up 10 feet like we hit a pocket of air or something. I remember having to pry my fingers from the arm rests.That startled me enough to remember it in future flights when there was turbulence.

Luckily, I had had many normal flights by that time. I knew that bump was the aberration and not the norm. I still remember that flight whenever I reach unexpected turbulence but I manage to fight down the silly fear I have. After all, I still choose to fly – once in the air, I have no control over what happens, so why worry about it?

The sad part is that there are thousands of people out there who have a fear of buying. They tell about their uncle who had a bad experience and lost some money. This uncle usually paid too much for a house he was planning to rent, and then the tenant trashed the place and he had to pay a bunch more money in repairs, then immediately sold it for a loss. Being afraid about investing because your uncle told you a bad story is like being afraid to fly because you heard about a crash in the news.

Steps to Conquer Your Fear

  1. Remember that for every person who has had a bad experience in the past, there are many more who have become rich investing in real estate.
  2. Educate yourself: Learn as much as you can about the business so that you are prepared. You’ll know when something goes wrong whether it is serious or just a normal part of owning real estate.
  3. When starting out, it is OK to play it safe. You don’t need to take down a big risky deal on the first time. Don’t invest what you can’t lose. Then, if you have difficulty, you can get back on the airplane next time.
  4. Get great mentors. There are many places to find mentors. Local meetups, online message boards, or even here, are great places to get help and advice.
  5. Evaluate every deal in the same way. Do the exact same calculations and never deviate or fudge. Trust the numbers, not the emotion.
  6. Keep going! If I stopped flying after Iowa I would have missed out on many great vacations. If I stopped investing after losing $8k on my first flip, I would have missed out on that 80% ROI apartment building that led to me becoming financially free.

Remember, other people have been exactly where you are now. They can help you. Taking that first step is like stepping onto the airplane for the first time. It’s so exciting and you are nervous, but the end result is almost always fantastic.

Dr. Equity