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Zen and the Art of Real Estate Investing with Jonathan Greene

The 3 Biggest Pain Points for New Investors

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What do you think are the biggest pain points that new investors have?

If you’re thinking capital or maybe not having enough properties, well, they’re actually not. 

In fact, after talking to thousands of investors over the years, I have discovered these three biggest pain points that new investors need to approach mindfully. 

 

1. The expectations of scale

Many new investors who have never closed on a property are already thinking about how many doors they can get in the future. When your financing and options are limited, that’s going to put you into deals that you probably don’t want. And you’re going to be chasing numbers instead of assets. 

The expectations of scale come early because people are trying to get quickly in and out of their jobs. But this is not the way to focus on real estate investing. Too many people are looking way too far into the future. And it’s not a mindful approach to start counting your chickens before they’ve hatched. 

Instead, just get your first deal closed and figure out how to get that first property working at max capacity with the least amount of capital expenditures available. Then move on to your next one. 

 

2. The fear of missing out (FOMO)

FOMO indicates a lack of confidence. Maybe you haven’t done the due diligence to understand, or you haven’t made the relationships to know what goes into being a long-term real estate investor. FOMO causes more investors to make horrendous deals than anything else. 

 

3. Camaraderie

People tend to think that real estate investing is a solo entity, like playing golf or tennis, and you’re out on your own. And so, they end up discounting the opportunity to have that kind of camaraderie and bonds with other investors. 

Obviously, you’re going to do deals on your own, you’re also going to do deals in the future with partners. But the camaraderie of knowing other real estate investors is the thing that will take you from zero to 100 quicker than you would have expected. 

If you want to learn more about the three biggest pain points for new investors, check out https://www.trustgreene.com/podcast/zen/004

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