2 Things That Stop You From Investing In Real Estate

Author: Ken Beaton
Category: Real Estate
Reading time: min

Courageous child overcoming challenges with mindset

What is holding you back from investing in real estate?

As a Real Estate Broker, an active investor and educator I get to see a very wide range of people who want to invest in real estate.

I also have the opportunity to meet so many people who believe that investing in real estate is extremely risky.

 

Some think it’s Risky

A recently retired real estate lawyer who made his living from people buying and selling real estate wrote an article in the local paper stating why people should be renting rather than owning real estate.

Then we all know people who speak like they are an expert on real estate, explaining how risky it is, yet they have no real experience.

The one common thread I see far too often in these people is ignorance – people saying or believing something to be true without knowing all the facts.

 

Easy Button + Quick Results?

I recently had a conversation with my personal coach about how easily people are guided or misguided and that in general people have become entitled and impatient.

With respect to real estate investing, people want the EASY button and they want results quick. When they don’t get the quick results and they realize there is no easy button, they give up and return to their old ways.

Real estate has been wonderful for me and my family. It has allowed us to vastly improve our standard of living and travel to places we could only dream about.

But to become successful in real estate took work and time, something I see far too many people not willing to do.

 

 

Apartment Buildings?! No Way…

When I began teaching real estate investing I was focusing on larger deals like apartment buildings, partly because this was what I was interested in and successful with, but also because that was what most students believed they wanted to invest in as well.

I love teaching this program and I have had many students do very well with their investments.

Over time I began to notice that many of the students failed to achieve success so I started to pay closer attention to why.

 

Excuses… or something else?

The top 5 excuses I would hear from students about why they couldn’t invest in BIG deals were:

  1. I can’t imagine owing that much money (mortgages) and what if I have vacancies?
  2. How could I ever manage so many tenants?
  3. I can’t afford 25% down for the purchase.
  4. “I don’t have enough cash and I can’t ask people to invest with me” or “I don’t know anyone with money.”
  5. There is no way I could qualify for a mortgage that large.

These reasons are all:

  1. “Mindset issues” and
  2. Lack of knowledge

The reality is that for most students to achieve success in big deals they really needed to experience some massive changes with their mindset and beliefs.

This massive shift in thinking is simply too much for most people so I began to think about how I could help people succeed in real estate without investing in the big deals.

 

Start With Baby Steps

There are many different investing strategies, so I started to review all the different kinds and I came up with one where a person could still achieve financial success but do it with only 5 houses.

For many people, the idea of owning 100 apartments or more sounded wonderful, but in their subconscious, they ‘knew’ there was no way they could ever do that. However, 5 houses is definitely something they believed they could do.

All I had to do was figure out how to make 5 houses generate the same income as 100 rental units. This is how my program called “5 Homes to Freedom” was created.

 

Mindset + Tactics

The program itself teaches a very detailed strategy about how to achieve financial freedom with real estate plus it teaches what I call the success secret.

I have discovered that I can teach different investing strategies, yet success is limited to and controlled by the mindset and beliefs of the student.

So what I also teach in my courses is how to overcome all of the mental hurdles and road blocks that stop us from achieving whatever it is we want to achieve.

 

Do Whatever it Takes

To be truly successful in real estate investing you need to have realistic goals, a game plan of how to achieve those goals and, most importantly, the mindset and willingness to do what needs to be done – no matter how uncomfortable.

Winners do whatever it takes to succeed.

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