Investing in your first home or property involves a lot of emotions.
No matter if you are investing in a home for your family or as a source of income, the emotions that flare up when investing large sums of money in real estate can be paralyzing. Without careful analysis and the opinions of those you trust (and no one else), you could either make a bad investment or miss a golden opportunity.
Let's figure out how to avoid that!
How to Stop Emotions From Driving A Bad Decision
Real estate investing is a great way to make a significant amount of money if you do it correctly. The first lesson we stress when we're working with a first-time investor is "Trust your intuition." Don't get caught up by get-rich-quick schemes. Social media and news outlets love to talk about "getting in quick" or the importance of buying now. Making a rash decision would affect so much more than "right now." If you don't feel ready, you're not ready.
Second: plan. Leaning on experts like Gabrielle and Kevin, you can build a plan for the ideal property before you start looking. That way, you won't let your emotions force you into a decision you may end up regretting.
Now you have your intuition and basic logic covered. Let's consider some other ways that emotion can ruin property investing.
Emotions Can Lead To Over Paying
Another mistake first-time investors often make when emotion gets in the way is overpaying. There is always sentimental value attached to real estate, even when the property is for investment purposes only. Whether that sentimental value is coming from your end, or the seller's end, it is important to recognize it. It could be nostalgia or sentimentality, but it also could be competition. When others are interested in a property, it can make us feel more driven to "win." But, winning might mean ending up with a property that's not right for you.
Avoid getting caught up in a competition by constantly referring back to your original plan, sticking to your budget, and also asking for advice from professionals. Gabrielle and Kevin are excellent mentors and can give expert feedback with no emotional attachment to the investment. Reach out to them by phone:
Regalway Homes is here to help you navigate and eliminate your first-time investor emotions
Unfortunately, the stress of being an investor does not stop when you write your check. Being an investor can be a highly stressful situation when a tenant refuses to pay their rent, when they pay late, or when you are hit with unexpected repair costs. These things affect your cash flow, and you should be prepared to deal with the emotional stress that these instances may cause.
The stress is difficult, but the outcome far outweighs that stress. By being an investor in real estate, you are building a financial legacy through passive income. This is the best ticket to retirement, in our opinion.
At Regalway Homes, we are here to help guide you through that first investment. We have experience mentoring and partnering with first-time investors to ensure everything goes as planned, and what we can’t plan for, we prepare for. You can book a session with us to walk through your goals with you, listen to your concerns, and advise you on the critical next steps to take in your first real estate investment journey.
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