How to Conquer Fear for Good

THE ONLY SUREFIRE WAY TO STOP FEAR FROM STOPPING YOU

“FEAR!” That is the answer I get 9 ½ times out of 10 when I ask someone what is stopping them from reaching their goals in real estate. Why are you letting the fear stop you? “I don’t know” is the typical response. The answer is that they do not understand fear and they do not know what it takes to push through it. Let me start by explaining what I believe fear is. Fear is an extremely powerful and useful emotion that was given to us to protect ourselves. Fear makes us stop and consider what is about to happen and gives us time to evaluate. It turns on our senses and lets us experience the world at a higher level. Fear is an extremely positive thing and should not be avoided, but it does need to be managed. I love the motto, “Feel the fear and do it anyway.” I learned that at a self development camp I went to several years ago. It runs through my head each time I am about to face something that scares me.

At this camp we did some really crazy things that were meant to be safe AND scare you. Things like walking over broken glass, being put in situations where physical harm was threatened, and tackling an obstacle course 30 or more feet above the ground. All of these tasks were meant to help the attendees learn about themselves, and learn how to handles stressful and fearful situations. It was extremely uncomfortable, and if not for the peer pressure, my guess is that most people would not have participated. The interesting thing about this is that the peer pressure was extremely effective, but is not always there to help you along. When you are in business for yourself, you don’t have this outside pressure close by to help you accomplish your task. You need another tool in your tool box.

Travis and I were speaking the other day and I brought up something that Tony Robbins talks about a lot. Every decision is made for one of two reasons. Decisions are made to gain pleasure or avoid pain. Avoiding pain is a much stronger driving force. Avoiding pain is the motivator that lets fear stop us. With this knowledge you can create a plan to tackle even the scariest situations in business. The key is to understand the worst case scenario if you make the decision to push through the fear and then the worst case scenario if you choose to let the fear stop you. If you don’t consciously think about this, the fear will likely stop you. Again, the reason for this is the pain of facing the fear could be immediate, appearing more intense than the alternative. The reality is that the pain can be much, much more intense if you don’t push through the fear.

Long before you ever get into a situation that will require you to overcome fear, you should think about what you really want out of this business. What will you really be giving up if you are not successful? You need to really feel this deep down. Why are you in this business in the first place? What do you want? What happens if you don’t hit your goals or you are not successful? I have written about this before, but this is your “why”. Without a clear and powerful “why”, fear could be too strong to overcome. This is the problem many unsuccessful investors have that the successful ones do not. With a powerful “why”, fear will never stop you!

Stop reading this article and think about that. Think about what it is you want. It is bigger than money and bigger than you? It is not because you want a big house and a nice car. It is something strong that will cause an emotional reaction to talk or think about. An example could be a charitable cause or a family member you want or need to help. Spend time thinking about the reason you NEED to be successful and put up reminders where you spend time working. Photos or motivational quotes work really well. I have a coffee mug that I drink my coffee from every morning that is covered with photos of me and my girls. It is impossible for me not to stay motivated when I see this each and every day.

Rookie Mistakes To Avoid When Investing In An Apartment Building

An apartment building can still be a good investment today. Why? For starters, there are still a lot of people who are still looking for homes to rent. In addition, the units of an apartment building do not just have to be spaces for residence or homes for families and individuals. By getting the right permits, units in an apartment building can be rented out as commercial spaces.

First-time buyers of apartment buildings will certainly have high expectations regarding this particular investment. This is mainly because they will invest a significant amount of money for this venture. As such, if you want to make sure you will own the right apartment building that can help you find success in the field of property rentals, make sure you avoid these common (and costly) rookie mistakes:

Not looking into the history and reputation of the apartment building’s builder or developer.

As a first-time owner of an apartment building, the last thing you want to happen is to stumble upon some structural problems or system failures. As such, it is important to check the background, capability, and reputation of the company that constructed the whole property. Going online and asking companies or individuals that have worked with the property developer is a good way to get some ideas about their competency. If the property developer has a good reputation and has stellar reviews about the properties they built, chances are, it is quite safe to buy a building that they constructed.

Buying a property that is located in an unpopular area.

When purchasing an apartment building, keep in mind that aside from your budget, an important factor you have to consider is its location. Real estate experts say that it is a good idea to buy a property in an area that is improving since buying in a declining location will simply result in high vacancies and rent drops.

Not having sufficient cash flow and reserves.

As a newbie investor, if you are not confident with your reserved funds, you have to get into deals that will create a quick cash flow only. Avoid going into deals that won’t provide a cash flow from day one even if that transaction promises a huge potential profit since you may be put at risk of being unable to pay the bills.

In addition, make sure you have enough cash reserves. Failure to do so can get you involved in different complicated situations. As a property owner, keep in mind that a lot of unexpected issues can happen. As such, you need to have a reserve fund that is adequate to pay for these emergencies.

Your Big Why and Planning the Future

A while back at an event I got the opportunity to sit across from a couple of brand new investors. As I usually do, I asked them what they were investing in; they admitted that they were newbies and weren’t really sure where to begin. We discussed their level of knowledge and expertise, and I found the conversation drifting away from real estate and more into the lifestyle design arenas. I started asking them about their “Big Why” – why were they wanting to leave their corporate jobs, what they wanted to do with their time, and what would make them happy.

We started putting a dollar value to that lifestyle and level of comfort. I saw their eyes get a bit wide as the reality of what they were up against hit them. I quickly reassured them that real estate was a great choice to attain the lifestyle they envisioned if they were willing to work hard and put in the hours, but how? We didn’t get into too much detail on the spot, but we talked about breaking those big goals down into time frames and smaller milestones. We discussed assigning how many and what type of deals could get them to those milestones, as well as what were they comfortable doing and how their personalities would help them to achieve their goal. They made notes on what types of marketing and how many offers they would have to make each month, week, and day in order to acquire the number of properties to hit their goals.

We then went back to their “Big Why” and discussed if it was really big enough. By that, I meant to talk to them about whether their choice to pursue real estate would be big enough to get them up and out of bed every day? Big enough to push them to tackle that daily task list? Big enough to hit those smaller goals knowing that as each milestone is hit that they are that much closer to the lifestyle and freedom they want? They made some more notes, and I think they had some talking points to consider as they pursue their real estate vision.

So what is your “Big Why”? Why are you a real estate investor? Is it big enough to get you out of bed each morning with a smile on your face, ready to face the day? Is it big enough to motivate you after 3 months of busting your butt without finding the right deal? This isn’t something you can come up with overnight if you haven’t spent any time on it already, so let your mind wander. Dream big! Dream really big and write it down. Look at it every day and see yourself living that lifestyle. Then break down how you will get there. Get really specific, all the way down to daily tasks. Now you’ve put goals and milestones on paper and you have created a map showing you how to get to that big dream and lifestyle you desire.