I put up a post on Instagram Stories the other day asking people to respond with the ONE thing that scares them THE MOST about getting started with Real Estate, and literally every single response involved the fear of LOSING MONEY.
Friends, I don’t want the fear of losing money to hold you back!
There’s so much money to be made once you get over those fears and get in the game.
Here are some of the responses I received + my answers to help you navigate those fears!
WHAT IF I CAN’T FIND A RENTER AND I END UP MISSING MY MORTGAGE PAYMENTS?
- Always make sure that you are able to take care of at least 3 months of the mortgage payment on your own just in case you are not able to find tenants right away.
- When it comes to finding tenants make sure you’re thinking outside of the box! That will help you find tenants faster! Consider short term renters, vacation renters, students, nurses, etc. Be sure you that you really understand what kind of tenant would be attracted to the type of rental you have.
Again- In real estate you have to be willing to pivot. Your original plan for the property might not work out and that’s OK. Choose another strategy until you find a good fit.
For our very first rental property (a duplex), there was a tenant already living in one of the units when we bought it, and we thought he would stay long term…but about a week after we got the keys to the place he decided to move out so we had to think fast so that we didn’t have a vacancy for too long. We decided to try Airbnb until we could find another tenant and our Airbnb ended doing so well, we kept it on Airbnb for almost 3 years! The Airbnb income was almost 3 times the amount of what the previous renter was paying. That pivot led to MAJOR profits! If you’ve ever considered renting your rental, a room in our home or your basement on Airbnb, here’s a video that shows you how to figure out if Airbnb is a viable option where you live.
I’M AFRAID I’LL GET TERRIBLE TENANTS THAT WILL RUIN MY PLACE AND COST ME MONEY
- If you are renting right now- Are you a terrible tenant? Probably not. And chances are you can find a tenant just like you.
- Screening is key. You have the power to screen anyone that applies for your rental property.
- You don’t have to be a landlord to invest in real estate! There are several investment strategies that do not involve tenants. Curious about other ways to invest and which way might be the best for you? Here’s a quick quiz to find out.
At the end of the day, all investing involves risk! You just have to make a plan that works well for you and be willing to pivot if it doesn’t work out!
WHAT IF TOO MANY MAINTENANCE ISSUES COME UP AND I LOSE A LOT OF MONEY ON REPAIRS?
- This is why it’s important to understand the state of the property before you purchase, and that’s what the property inspection is for! There’s nothing wrong with buying a property that needs tons of work and there’s nothing wrong with buying a “turn-key” property that needs little or no repairs. Just do what fits in your budget.
- Even with a “turn-key” property, things will come up! Make sure you have at least 3-6 months of expenses saved up and look into getting a home warranty. Often times the seller will pay for 6 months – a year of home warranty services for you if you can negotiate that into your contract!
WHAT HAPPENS IF I GET IN OVER MY HEAD AND LOSE MONEY?
The key to avoiding “getting in over your head” is to make sure you are using the best Real Estate Investing Strategy for YOU. There are soooo many ways to invest! Some are more involved than others. Don’t feel like you have to be a Landlord just because that’s what you see people doing on the gram. Pick an investing style that fits your goals and your capabilities. If you are wondering which type of investing might be right for you, take this short quiz I created to help get you on the right path.
WHAT IF I FAIL?
My question is- what if you don’t even try? What opportunities are you missing out on by not trying?
If you want your money to make money – (besides that $2.67 of interest per year you’re making in your savings account.) You HAVE to take risks.
You can do this! It’s time to get off of the sidelines and get in the game!