Fear and Doubt in Real Estate Investing
"Why didn't I order this program sooner?" Boy, I wish I had a buck for each time I've asked myself that. So, why didn't I by that program sooner? Simple. Doubt. Actually, doubt and fear.
I had seen Carlton Sheets on the TV for years, but I didn't believe that what he was suggesting was true; if it did work, I didn't believe that I could do it. After all, it's me we're talking about!
Today, I view and even feel differently about myself and my abilities. How did I begin to change my perception of myself? I think I finally pulled myself up and grabbed the bull by the horns and hung on for dear life! What does that mean? That means that I took a risk and ordered the program and thought that if I get one property, then it will have paid for itself; if I don't get any, then I will have "failed" again which I'm used to anyway, right? So, I may as well just try it, 'cause those guys did it.
Doubt and fear are, by far, the two biggest hurdles over which I jump multiple times daily! Every time I try anyting, they're there, telling me all the reasons why I shouldn't do this or that, and if I do, why I'll fail; so I begin my day with them nearly always. Yep, nearly always. I'm getting better!I write that I'm getting better and, therefore, overcomming this, at times, crippling fear and doubt because it's nearly everyday; not everyday like it used to be. For example.
Today I began this article while waiting to hear from a new mortgage broker. He'll be able to get financing for our loan, and I'm thankful for that, but when I mentioned that my wife and I had begun our REI venture after buying, studying and finishing Carlton Sheet's program, he was very negative, saying that eventhough our credit is good, we'll only be "allowed" to buy about nine properties in our name before we're told we cannot buy any more; then we'll have to have our LLC buy them from us.
Ok, in my mind, what he told me gets initially translated into this: buy the nine, sit back and be greatful that we were even allowed to play in the game. Don't make waves. Just be happy that we've come this far, but the investor or arrogant one in me (one's not exclusive to the other) says, "hey, I'll find another way to buy more properties; to flip more properties, and to play the game even better!"
The point is that if I were to give into the fear and doubt (like I used to) that came up after speaking to that mortgage broker, I'd sink myself. Not that I'd be sunk, but that I'd sink myself as I'd be doing the sinking, allowing those self-limiting thoughts to rule me.
Hey, having walked through some fear and doubt, let me ask myself this question: How would I get around that magic number of nine properties? Oh, let me take a brief inventory of the possible answers...
How about lease options? How about using my current partner's money to continue doing rehabs? How about contiune using my other partner's name? That's three possibilities in three seconds! There are answers out there if I just look for them -hey, I'm thinking creatively, right?
So, what have I learned in the last year of REI? Well, I cannot buy anything if I don't offer on it. What's more, I can make many offers on the same place and even with different techniques! And here's the big one that I've learned. Now this word my startle you, so prepare yourself: No! No, no, no! Boy, no can be a powerfully nasty word, hey?
Fear, doubt... They said, "no!" Maybe I'm too stupid... Maybe they don't like me... Maybe God wants me to fail... Maybe -oh, add whatever you want here. The answer to my fear and doubt is to walk through them; run through them, but I gotta go through them because if I don't, they seem to only become stronger the next time around; if I do go through them, they become weaker and weaker with each passing. That's the nature of their illusion, once I walked through them, I knew what they were about.
It's only been about a year, but I'm doing more in REI than I thought I would and working creative techniques that I thought would never work. The best part of all this is that REI has helped me live the type of life that I've always wanted to live. A life of more serenity, financial security and one nearly with out fear.
Thanks,
OnTheWater
On the Water! Most of us have felt this way about RE and many other endevors that we enter into. I did enjoy your view of things it was a good read!
. I guess I look cute but not smart???! Oh well.
!
I can remember each and every fear of change (graduating, new job, marriage, moving, all the losses in my life and don't forget "parenting" boy! all of these more than a few times) the least feared thing the was the least fun. Weird isn't it. I can realate to self your questioning and doubt, also your resolutions and answers.
I have often been told by amazed people I am extremely smart not that I am not so sure about that
But only after doing what could not be done, like you I was probably too dumb to know it couldn't be done. Being a lady in a mans world (most the businesses I've worked are 99.9% men controlled and employed) had been the most fun and the most work to succeed in. I enjoyed it tremendously.
Few have ever believe in me and the ones that do often believe that I can do more than I can, but thats okay with me
Getting back into the RE business in this "new" frame of mind this time has been the most fun, educational and the most work realitively speaking. Good thing when you love hard work isn't it!
Every one that really succeeds has to have a little fear driving them I think. It is a natural human condition. The difference in those of us that ignore it is just what you found, walking through it regardless of the fear or doubt is the most fulling success. I think this regardless of the outcome you will find a success.
Nice piece of reading, OnTheWater. I wasn't going to read initially because I'm ok on the hype up stuff. But you really went into your thoughts here and even posed a few questions that you answered yourself. I enjoyed it!
Nice ...
Don't want to comment on Carleton Sheets who has been on national TV almost every night for at least two decades. That in itself speaks volumes.
We all have to face our own demons. It's something that we go through life doing. Meeting the challenge is rewarding both financially and mentally.
Worry about what you're going to do after acquiring 9 properties at that time. I see that you already have some ideas in that regard. For now, keep your eye on the ball and concentrate on the present.
Dear On The Water, sounds like you have given up imbibing in strong spirits.
Tell your Broker he should go back to school.
although frankly I do not believe it will help.
When you have accumulated the maximum amount of properties that your lending sources have decided is enough. You merely set up your corporate ownership and ipsy pipsy transfer them in. As the stockholder of record, my you have some very valuable stock based on the appraisals of your properties.
You go into the bank affect a swagger, wear your overcoat no hands in sleeves. Perhaps a
little sneer reflected in your voice. Throw down your financial statement which displays in blue ink if you really want to show off your assets as reflected by the Corporate worth. Then borrow whatever you want. I think you will probably be able to set up an open line of credit at about 25% of your worth, unless you play golf with the officers at which time there is an automatic increase to 50%.
Thats it. Stop there, do not p***** go, do not collect the $200. and avoid the last alternative.
Fun is it not? Lucius
Oh I forgot the most important part.
Someday you will go into the bank and they will tell you that your corporate structure is out of balance. Too much real estate and not enough securities. Can you imagine? I mean what do they teach in all those American Banking Courses. Advanced bankruptcy and how to get there? Shades of the Donald, even Trump known for little humor and a taste for mouthy broads would laugh over that
one.
I supose they want you to next start an REIT and from there do an IPO and take that money and buy stock? Totaly insanity. Just ignore the bankies.. I once worked for Bank of America and any institution that would employ me well, I certainly would not buy their stock.
Cheers Lucius