The fear of having less than you have now
Entrepreneur of the Week Karin Pobolutsky - Ravitchev # Post 3
This is the biggest fear I think it's the scariest fear of all.
My path in real estate started from a place where I still have nothing to lose, I started learning and not from the investment itself, so in the worst case I would gain knowledge. I started with a very, very small equity that I spent mostly on studies, courses, calculators, books and everything else that I did not save a penny for, and why because it is an investment in myself and no one can take it from me.
But what about the little that is left? Put it on a property I have not seen? In a country I have not yet visited? And who is thousands of miles away from me? Then the fear began.
What is fear? (Wikipedia)
It is an unpleasant emotional and physiological sensation in humans and animals, caused as a result of exposure to a dangerous or threatening external stimulus (physical or mental). Fear plays a major role in the survival of man or animal, and it serves as a means of keeping him away from the danger to his life, and even constitutes a factor that prevents him from entering dangerous situations in the first place.
So fear is actually trying to protect us from getting into a risky investment overseas and losing all our money! Excellent Thank you Fear!
But fear is also a total feeling, something we feel in response to something new that is happening and has never happened before. It is very very logical to be afraid when you start doing something new it is a physiological response of our body to protect ourselves. So how can you help him? Knowledge knowledge knowledge…. If the mind knows it will be less afraid but we too will do things more intelligently, get into better deals and be able to protect our money better and then also automatically be less afraid. Sometimes you just need to know enough to calm the fear and the rest will be learned along the way. There are things that are not written anywhere and it is impossible to know them without experimenting.
So at some point I realized that there is knowledge, there is to know and there is to be done.
Very soon after the first deal I got into the second deal still with my money. In retrospect if I was honest it was just to keep up with the doing and the momentum, luckily still on my money. And that's how karma brought me the No. 2 deal !!!!
- What did we have here?
- The last money I set aside for investment
- A new area I have not yet mastered
- Excel said - 21% on money after financing
- Excel said - $ 570 cash flow per month
- Ready and leased property and more by Section 8 - is there anything better than that ?? The government will pay me !!!
Reality -
- A second after the deal was closed one tenant left and the other filed a complaint with the Sanitation Department
- The remaining tenant has schizophrenia which created a problem renting the first unit
- Corona and it and can not be evacuated
- Until the complaint is handled in the sanitation department, there is no money from the government?
- No more money to add, repair or anything else… .. said money from day one no?
Yes it is as you think, there is no money here! Was not and will not be! Not for us anyway… .. We are selling the property and chances are we will only be able to pay the debt to the property manager and that's it. We are coming out of this deal on zero.
What I learned here -
- Learn the area I am going to invest in !! Not a bit and not about and not talking to one realtor and not to one asset manager. But study the area on its own especially if it is not the area you are an expert in
- to ask questions. Lots and lots and lots of questions. Even if it's unpleasant and even if it makes you sound like a beginning entrepreneur. News Flash is indeed a start-up entrepreneur. Whatever you do not learn from the answers you will learn from experience.
- Do not be afraid to say no when something does not feel right. At the point where I am today I also trust myself to say “no” when it does not feel good in the stomach. Without any tangible evidence. And no need to feel bad about it. If the deal does not work on Excel then in reality its chances are even smaller.
It is said that transaction # 2 is the most dangerous because you have gone through the fear phase a bit, you know that it is possible and you already quite understand how the initial process works, there is already the LLC and somehow there is even a bank account. There is a footprint in the field.
And boom you see yourself there next to the big ones. And the crowd cheers.
When you get down you have to get off the tree! Deal # 2 does not turn you into a peppered real estate entrepreneur. Come on.
Humility and fear. Humility taught me to ask questions at first and better questions over time but still a lot of questions. And the fear that accompanies me to this day for every transaction makes me better check the numbers, the area, the paperwork and everything that is needed.
There is nothing wrong with fear as long as it is an asset and not a burden. As long as we learn to harness it for our purposes and not against us.
Speaking of knowledge, I recommend reading a lot of books in the field and in any part of life you would like to develop. In the realm of consciousness and change of mind, I highly recommend reading the book "Who Moved My Cheese?" A wonderfully written book about dealing with change. One of the strongest phrases from the book is "What would you do if you were not afraid?"
So what would you do?
"Everything a person's mind can accept and believe in, it can also achieve" - Napoleon Hill.
In the picture - the property that brought me back the fear
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