Should I buy an investment property....? There are many people interested in real estate investing, but only a limited few actually go for it. Not everyone actually follows through with buying an investment property even when they've done all the research.
With all the potential benefits of getting involved in real estate, why all the hesitation? Is it you just don't know how to buy an investment property or just lack the confidence to take that first step and become a landlord of a rental property?
The main reason is that investing in real estate can be intimidating, even frightening, if you get caught up in thinking about everything that could go wrong. Sure, there's no need to rush, but if you've done on the due diligence and consulted real estate experts you trust, why not invest in your future.
Quote: Real estate investing, even on a very small scale, remains a tried and true means of building an individual's cash flow and wealth.
But some hesitation is a normal reaction. Anybody’s heart will pound hard when they’re signing a contract and putting hundreds of thousands of dollars into an investment, no matter how well-researched the opportunity is and how favorable the circumstances. People who do not have this healthy fear are not investors—they are gamblers.
If you have some hesitation about buying an investment property, start out small. This way you can learn about managing a rental property without taking on too much risk.
There are many different ways that people cope with their fear of investing. One is making excuses: Not enough money for a down payment, poor credit profile, have one mortgage already, don't want to be a landlord, don't know how to fix things, and so on.
Another way that people let their fear of investing stop them is by simply putting it off: I’ll wait until I get that promotion, until the kids are in college, until the kids have graduated from college, until the kids have houses of their own, until I retire, until my spouse retires… Next thing you know, you start thinking “I should’ve…I could’ve…” and the opportunities have passed you by!
You certainly don't want to rush into buying a rental property and over pay or buy the wrong investment property. But don't let fear hold you back from buying if you've found a good income generating property to buy at the right price. Not everything has to be exactly perfect, it should be close to perfect, but if there's an opportunity to buy a solid income generating property - go for it.
Perhaps one of the most common ways that people avoid taking the big step is when they insist on waiting for the perfect opportunity. The majority of people interesting in buying an investment property, who are attending the workshops and seminars, reading the books, browsing the newspapers, and searching the Web (yes, this could be you.) are suffering from paralysis by analysis.
Again though, it's good to be patient and not rush in to buying a property, but there comes a point where you're over thinking the process and you miss out on a good property to buy.
While it’s always a good idea to thoroughly research the opportunities available to you, it is possible to get so caught up in evaluating the situation that you fail to ever make a move and buy an investment property.
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