We live in uncertain times. After the mortgage meltdown and the almost collapse of the financial industry, the real estate market has been going through several ups and downs. The median sales price in my area went from its peak of $238,000 in June 2006 to a low of $138,500 in February 2012, back up to $210,000 in June of 2013 and we are on our way back down, currently sitting at $179,850 for January 2014.
There have been some wild swings in the past few years and the people that understand that and have kept a close eye on the trends, and have not been afraid of the market have made a lot of money the past few years. However, I have seen most people sitting on the fence and haven’t done anything. I can understand the feeling of uncertainty and being afraid to make a mistake, but let’s face it, if you’re afraid to make a mistake, you will never make it big.
You’re probably thinking right now “That’s easy for you to say Mike; you’ve been at this for a long time and have more experience than I do”. While for many of you, that may be true, however, for your info, I have probably made more mistakes than most of you ever will, and I am still making mistakes. But that is not holding me back.
That is one of the most common traits I see from those who are successful, even in this wild and uncertain market. They are not afraid to make a mistake, and often do, but they don’t let that hold them back.
Everyone wants to minimize their risk of making a mistake and losing money or damaging their credit, myself included. However, I see way to many people with paralysis of analysis and never do anything. So what’s holding you back?
- Can’t find leads?
- Feel like your offers are to low?
- Getting out bid?
- Don’t have enough money?
- Credit isn’t good enough?
- Don’t have enough experience?
- Don’t know how to Estimate Repairs?
- Can’t find Comps?
First of all, if you feel like your offers are too low, then good. If you don’t feel like that, then obviously your offers are too high. I would rather miss a good deal because my offer was too low, than lose money because my offer was accepted the first time around.
If you’re not making offers, then you’re not buying houses. If you’re making a ton of offers and nothing is getting accepted, then maybe we need to work on your estimating repairs skills, or getting better comps or a better formula, but those are skills we can work on and you are heading in the right direction. These skills come with experience and you are on the right track and there is nothing holding you back, yet.
If however, what’s holding you back is the fear of making a mistake or losing something, then you need to either figure it out, or take a leap of faith and just go for it. I know this sounds easier that it truly is, but at some point, you have to start taking action. Maybe a partner or a mentor will help, maybe not, but networking through your local REIA will help you find contacts and connections that will help you overcome your fears if you try.