I was amazed by some research that said that around 70% of working people have, at some point in their life, seriously thought about investing in real estate (besides purchasing their primary residence)?
Yet, the research also claimed that only 2 out of 8 of those individuals actually invest or have invested in assets, and only one of them is brave enough to invest in commercial real estate assets.
A downside was also that women, in particular, seemed not to think of themselves as savvy to evaluate investments and ultimately invest in real estate.
Around 1 out of 5 men aged 18-34 have sought help and mentorship about financial and real estate investments, compared with 1 out of 15 women in the same age group.
So, why is this? And more importantly, how to help people (especially women) become more confident about real estate investing?
There is a cycle to building up your real estate investment confidence.
The more we do something, the more competence we develop, and the more we raise up our inner belief system.
1. Start Thinking Of Yourself As An Investor
If you are considering investing in real estate, you are, most likely already an investor, or have participated in activities of that kind.
If you own your house, have an IRA, a 401k, a pension plan, stocks, and bonds, or even a regular savings account – you ARE an investor of sorts.
But – if you don’t have any/some of this investment starting point in your portfolio, just start a savings/money market account with your bank and/or use the knowledge of proven investors to reimagine yourself and start a plan.
2. Believe Me: You Know More Than You Think
It’s no secret that women in particular have good instincts. Your gut feelings about what is going on and what is a good or bad opportunity – this is where the opportunities lie. Trust your feelings.
Ultimately, when you combine what you have been born with, with some knowledge and information – the sky is the limit.
3. Now Is The Time. Start Taking Actions
I have encountered many women that think, “I can’t invest now because I don’t have a lot of money.”
And although it may seem like a valid reason – you actually don’t need as much financials to enroll in the real estate investment world.
Start with $50 a month. But keep regular investment savings. Invest in something smaller, and take a portion of payments (income tax refunds, stimulus checks, bonuses from work) and make a deposit in an investment account.
As far as I know, the best way to boost confidence in real estate investing is to start with something low risk.
Take wholesaling as an example. Before moving to strategies like buying, try to hold or fix and flip.
Taking action now will shift your energy and confidence in the right direction and open up your mindset to new possibilities.
4. Cherish the value of financial advice and mentorship (Work on your belief system)
A proper financial advisor, or/and a good real estate person can get you really far in your CRE game; especially if you are just starting off.
The right guidance will spark your belief system, and point you in the right direction, to pursue a more specific real estate branch.
You should not just focus on the cost of advice and mentorship. They can put you off often. In accounting, there is the concept of “opportunity cost”. This is the loss of potential gain from other alternatives when one alternative is chosen.
You can think about it this way too: What is the cost of you staying in the same place?
It is an important issue to think about and discuss. It is also the #1 reason a lot of people stay in the same place.
5. Think Long Term
Investing in real estate, and especially building your confidence in it is not a one-time thing; it’s not a sprint. CRE investing and building your CRE portfolio is more of a marathon. You enter the game. You struggle. You regain strength. And you reach the goal.
You are creating a life, a strategy, and a career for yourself. A new way to look at your financial well-being and believe in the possibilities.
Focus on the end goal. Remember the reasons why you want to achieve those goals, and follow your gut feelings.
Confidence in real estate investing will come by taking action. But the action (or at least some of it) comes before it. IPG can be a safe harbor to support you on that journey.