The Terror of the Investment Buck

 

She sits, in the still of the night, trepidation ripping through every muscle, vein and fibre of her being. Thick droplets of sweat cascade down as her entire body is submerged in sweat. She closes her eyes, tightly shut as she holds her breath and prayerfully wishes for it to pass. She wants no parts of it, wants nothing to do with it.

This almost closely captures the sentiments and antipathy many feel when it comes to investing, especially in real estate. It’s an investment sector that comes with murky, undesirable precedents especially in Nigeria, seeing as massive tales abound of real estate investment ventures gone awry.

Let’s be honest. Fear is an emotional response to perceived dangers. Trying to ignore or suppress fear doesn’t work. Fear has its place in real estate investment, as we’re talking hard earned money that can go down the drain if investment isn’t done right. There’s concern over the stress that you can feel if something goes wrong with a tenant or a partner or a deal.

So proper fear can serve as checks and balances, keeping you from making a bad decision or acting too quickly before you have all the facts, however unnecessary paranoia can cause you to freeze up and not act at all, and that will get you nowhere. The best thing you can do is acknowledge you’re afraid of something, understand it, and then decide if you need to run from it or confront it. When you do it this way, you’ll be able to recognize the fear that is protecting you and move past the fear that is holding you back for no reason.

A good way to proceed is to take stock of what the triggers are for your fears. What are the facts of the case? What are you really afraid of? No good deals in your area? You don’t think the market is a good one to invest in? Don’t know where to invest? No investment capital and or feel stuck without money to put into deals?

Do a worst-case scenario analysis: How about if you buy an investment property at a wrong time? What if you buy from the wrong guys, and get scammed? Water logged land that didn’t seem so at first? Land purchase in an area with no current or foreseeable development? Land or property that for some reason isn’t taken up by tenants and so remains vacant for a considerable amount of time, hence causing you loss? Getting cash trapped or something of great importance coming up right after you’ve committed to the investment, something that requires urgent financial attention?

Imagine all the possible worst-case scenarios and work them out, in your head. Odds are that you’ll probably live and would most definitely surmount all of these odds, should they happen. You have to remember that your absolute worst-case scenario is very unlikely to ever happen but if it does, are you going to survive it? Situations like this test your out of the box prowess and mental fix-it resilience, so let these eventualities charge you up and not dismay you.
Feels like you don’t know much about real estate investment?

You may worry that you don’t understand the market well enough to make a solid decision. This lack of confidence can keep you on the side-lines. Perfect timing then to scale up in your knowledge and grasp on the subject matter. Plan diligently for success by reading up every book you can find on real estate investment and then put your theoretical knowledge to the practical litmus test by actually investing. This is the only sure way to harness and sharpen your investment skills and the know-how.

Real estate investmentinvesting can be scary. This is doubly true for the a first-time buyer, but you would be losing out of a gigantic cash cow if you let fear stand in the way of your financial goals. As long as you do your homework upfront, you will not be taking a leap of faith. Instead, you will be making well informed, pragmatic, and well thought out business decisions, never forgetting that through it all, you are in control for the most part.

There’s almost no fear that can’t be overcome by simply taking action that moves you squarely towards what you’re afraid of. By understanding the worst-case scenario and knowing you can handle it, increasing your real estate and property management knowledge, you can face your fears, move past them, and let your cash cow come home to roost. The rewards waiting for you on the other side can be boundless, so overcome your fears today and let real estate investment be a case of: “It’s in the bag!” for you.

Play back to the beginning:
She rises from her previously curled up fetal position of fear. Like a phoenix rising from the ashes, she gathers herself, rising to a stoic stance, legs unwavering, hands clad with weaponry to make the most terrifying of demon quaver. With blood shot eyes, she holds the gaze of the object unknown, staring it right in the eye from the stillness of dark, and lets out a deafening war-like cry. A cry of fear conquered and braced for a tackle.
This should be the disposition of every real estate investor.
Got fear? Call us today on….We’re here to help you set up for a win.