Fears of Real Estate Investing

Tue, 17 Jun 2008 21:37:47 GMT

Did some one say FEAR? Yes, the FEARS of real estate investing… how can it be fearful… real estate is about making money. Right! For about 5% this is true, and for the other 95% real estate investing is a paralyzing fear causing them to sit on the sidelines. Literally stuck to their chair by hearing all the horror stories; From friends and media about people losing lots of cash money or paying sky rocketing mortgage payments and dealing with foreclosure.

What is FEAR? Most people quickly comment, False Evidence Appearing Real… Right? No that not right. FEAR is Anticipation of PAIN. Fear is Anticipation of Pain… Is it a present, future or past event? Fear is a future event. And all future events are not real until they become present. All I ask you is to be aware of this… because this is what stops 95% of all investors….

The Fear of Financial Loss
So Real Estate Investing does entail taking financial risks. But can someone show you a business or investment venture that required no risk? Taking uncalculated risks is foolish! But taking measured and diligently analyzed risks is a smart decision. Understanding how to analyze a real estate deal and setting clearly defined investment strategy can help minimize financial risks.

Some Real Estate Investors fall in love with the “property” but remember that it’s not the “cosmetics” that make an investment an awesome deal, it’s the financials. Before you purchase that first property, which, of course, you financially analyzed, determine what you expect from your investments…your financial goals. It's known as "The 'time vs. money’" concept. The more you have of the one, the less will you need of the other, in order to achieve your financial goals. Someone said it the best: You can either make excuses or make money but you can’t have both!

The Fear of Leverage
Many Real Estate Investors want to maximize the use of their own funds to own real estate. In a downturn economy, when most sellers are desperate to sell their properties, why aren’t investors taking advantage of existing equity in the property? Regardless of what you
may have read or heard, there are still some legal and creative ways to take advantage of the existing equity in the property. Will you rather have a 20% equity in the property and use 20% of your own capital to purchase this investment or is it a smarter strategy to use 20% of the “dead equity” in the property as a down payment?

Try analyzing a deal with your 20% down and then without using any of your money, which deal will get you higher annual cash on cash returns? Left Equity in a property is a dead Equity. Use it or lose it over time!

The Fear of Making a Mistake
For most real estate investors this is the #1 Fear that will stop you from making any decisions regardless of knowledge and experience. This is the big one. "I can’t make a mistake".

I say 100% of all real estate investors have the same fear regardless of how much experience or knowledge they have. It’s just about how they handle it. Investors lose thousands of dollars in lost investment opportunities based on the

Fear of Making a Mistake… So important it needs to be said again!

Fear of making a mistake is grade school myth that has been engrained in us, to the point that paralyzes us to the point that I’ve seen some investors enter a state of analysis paralysis. Let me tell you its okay to make a mistake, this is the way we learn and continue refining our way to building a strong real estate investment portfolio. Educate yourself so that you have a strong understanding of real estate investing and team up with team that provides you with excellent real estate experience and opportunities.

In Conclusion

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Our approach makes real estate investment more productive and less time consuming for busy real estate investors. We find properties, analyze the financial aspects, negotiate price, arrange a property management company, and bring to you turn key, rent ready real estate investment opportunities that make financial sense and generate immediate passive rental income.

We research multiple real estate markets nationwide and only acquire opportunities that pass our strict criteria. We walk you through the whole process, from reservation to close of escrow. We are committed to help you attain financial freedom and a lifetime of security through building a portfolio of income producing real estate investments.
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Is this the best time to purchase real estate?

Mon, 16 Jun 2008 14:40:48 GMT

Seems like it should be, since prices are down across the country, and rates are holding their own at about 6%. Bargains are out there, across this state (CA) and in other states. Occasionally I do hear about certain properties, and usually have first hand knowledge of them, and will show pictures and prices here. I usually know the owner or sales agent, and take direct information about the property here. The picture shows a property in sonoma county that is about 13.67 acres and has many nice amenities.

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Fears of Real Estate Investing

Is this the best time to purchase real estate?