How many of you have been able to take action from the training you have had? Some of you may be just starting out and haven’t taken any of the Rich Dad Education Elite Training courses yet. Some of you have taken a course. And then there are several of you who have taken several courses. But what have you done so far? Are you actively putting into practice the things that you have learned? Are you waiting to get more “education”?
As a mentor I have seen students take several classes- often as many as 8 elite training classes, and not do a single thing. They wanted to get “educated” before they did anything. So now they have a lot of knowledge about a lot of things and they have no clue where to start. Many times they feel overwhelmed simply because they didn’t put into practice all the things they learned when they learned them. As a mentor, I have had to untangle the various strategies that are now all mixed up in their heads.
I have also seen students that have only taken the basic class and are out there looking for vacant houses, putting ads on craigslist, getting phone calls and finding potential deals. Sometimes they don’t know quite what they are doing yet, but they are excited to be able to do SOMETHING! What do they do when they need help? They call the hotline to talk to someone that will help them know what to do! When a student calls in a panic and says, “I sent a postcard to the owner of a vacant house and they called me back. What do I do now?” I am excited!! I congratulate them for taking action. Why? Because their learning curve is taking off. You learn so much more when you are out doing the business. Now when they take a class, they will understand more of what they learn. They will also put the new information they were taught into action, and go out and do the homework that the instructor gave them. And the learning curve will take off again.
So I am asking you, have you taken ACTION??? If not, what is holding you back? Do you need more “education”? Is fear crippling you? Do you have analysis paralysis? Or are you saying to yourself, “Where do I start?”
Let’s talk about these concerns.
Concern # 1: Need More Education.
Be very careful if this is your excuse. Go out and practice doing what you were taught. I guarantee you that you’ll learn much more if you will do that. You probably will have questions. That’s wonderful! It means you are processing what you’ve learned. Here in the Rich Dad Education Company there are so many resources to help answer your questions. We love it when you have a question because you are out doing the business and have encountered something you hadn’t learned in class, or maybe it was taught but you hadn’t processed it.
There is a saying, “If you’re not making offers then you’re not making any money.” And if you are not taking ACTION- you won’t be making any money. Guaranteed! If you are not making any money you may become discouraged and give up on investing in real estate. We don’t want that to happen. Please get educated. We do want you to do that. But don’t wait to get out in the field. Look for potential deals, work on your power team, start marketing, do the assignments your instructor gave you. Take ACTION! Remember if you need help, we are here to help you.
Concern # 2 Fear
Fear is false evidence appearing real. It’s easy to say but often hard to overcome. So how do you overcome fear? Something that I have done to help me deal with fear is that I say to myself, “What is the worst case scenario if I did this?” Then I play it out in my mind and I find that it isn’t all that bad. For example, you want to interview a lender. You make a phone call. You have a script of questions in front of you that you are going to ask. When they pick up the phone you introduce yourself and start asking some questions. Worse case you get a little tongue tied and trip over some questions. What happens now? Maybe the lender is rude and you hang up. Or you may find that some lenders will still listen to you even if you are new and nervous and they are very patient. As far as the rude one- be glad that you found out now, because that is not the lender you want to be working with.
I had a couple of students at the same time who were afraid to call For Sale By Owners (FSBO). The first student decided that she was going to call all the FSBO’s in the paper (before craigslist was the main source). There were several, and she called every single one. Afterwards the fear was gone. I remember her telling me how people would tell her things that she would never tell. She never had a problem after that. It built up her confidence, and she went on to do many things successfully. The second student also had the same fear. She called a couple of FSBO’s and had a good conversation. But she only called two. She still had a lot of fear.
My advice to you is to realize the worse that could happen is that you call a seller and stick your foot in your mouth. Now you don’t get a deal. Realize if you never made the call you wouldn’t have gotten the deal anyway. So really, you have nothing to lose and everything to gain! And the more you do it the easier it becomes, and after a while you will have the confidence you need to move forward.
Fears are very real. Some fear they will make a mistake. Then analysis paralysis sets in. So let’s talk about concern # 3.
Concern # 3 Analysis Paralysis
Analysis paralysis happens for many reasons. As mentioned above, sometimes it is because of the fear of making a mistake. How do you overcome that fear? By understanding all the things you need to know to be able to analyze the property. Part of it will depend on your exit strategy. If you are wholesaling and make a “mistake” you can always back out of the contract or renegotiate with the seller. Yet often too many new investors are paralyzed and can’t make that offer. There really is no risk as long as you have put clauses into your contract that will get you out of the deal. Even with doing a lease option, you can have a certain amount of days to change your mind and back out of the deal.
If your exit strategy is purchasing the home to rehab and resell it then you need to be more careful because you have actually purchased the home. How do you overcome the fear of a mistake here when you know you will be liable if something goes wrong? You need to know what is going on in your market; what area of town are the properties selling quickly, what is the average days on the market, what price range sells fast, what kind of repairs you should or shouldn’t do, what are the repairs that will bring in the most money? You need to know how to evaluate the comps and how to run your numbers. It’s extremely important for you to spend time analyzing your deals. Once you start doing it, you will be able to avoid analysis paralysis! The same goes for rentals. You will want to know where your market is in the real estate cycle, you will want to get rent comps, you will want to make sure there is a diversity of employment in the area, and you will want to figure in all of the expenses to subtract from the income. Once you have a system for doing the analysis for each of the strategies, you will be able to move forward and take action!
Concern # 4 How Do I Start?
First, I would suggest that you just decide want you want to do. Are you looking for quick cash? Then you may consider wholesale or lease option if you are just starting out. You may have some background with rehabs or construction. Maybe it’s something you really want to do and are not afraid of. Then you may consider rehab. If you want residual income, you may be looking for income producing properties. Obviously your long term goals may be different than your immediate needs. Have you taken any classes? Did you work on the action plan from your instructor? If you haven’t, start there!
I can’t emphasize enough how important it is for you to TAKE ACTION. You will find that the information you have learned will become clearer, and you will understand how all of it comes together. Action builds confidence.
Fear was addressed in the second concern. Can you see that it really dominates all of the concerns we have talked about? The need to take more classes before doing anything is because of fear. You have already learned a strategy and have an action plan. Implement it! We talked about how analysis paralysis is caused by fear. And the question, “Where do I start?” is usually dominated by fear since you were given the information during your training to help you know the steps you need to take. Maybe you are feeling overwhelmed and confused. Take a look at the action plan you were given. If fear is part of the problem, do something to help you overcome that fear. It could be as simple as driving around looking for vacant houses and sending out some postcards. It may be putting an ad on craigslist saying that you buy houses. It could be making a call to talk to an investor you could wholesale to.
As a mentor, I have found that the biggest obstacle for my students is fear. As I help them overcome that fear I see a huge difference in the way they think (no longer clouded by fear), the excitement to be able to put into practice what they have learned and the confidence to be able to analyze deals and make offers.
I know that each of you wants to be successful and be out in the field investing in real estate. I know you want to take action. If you let your fears control you, you will never take action. We don’t want that to happen.
Let’s start a discussion about any fears you have that are preventing you from implementing what you have learned and have stopped you from taking action. Let’s also address what you think you need to do to be able to overcome those fears. If you don’t want to talk about your own fears, ask where other people started!!!
Action is a great restorer and builder of confidence. Inaction is not only the result, but the cause, of fear. Perhaps the action you take will be successful; perhaps different action or adjustments will have to follow. But any action is better than no action at all.- Norman Vincent Peale
Rich Dad Education Elite Mentor