The #1 Obstacle Preventing People from Flipping Houses
My palms were starting to sweat and I felt hot all over, borderline anxious even. I was in the midst of a meeting with a rather challenging client, whose tile flooring was "just not looking right." The only problem was that the flooring had been changed and altered a few times now, in an effort to make her happy. As cliche as it is I was having an intense case of "The Mondays." I knew I desperately wanted to change careers and get into real estate, yet I was just too fearful to make the leap.
My phone rang just as I finished the meeting with my flooring client. It was my wife, informing me that something was wrong with her vehicle, and that the parts and labor to fix it were going to cost nearly $1,500. That same anxious feeling began brewing again in my gut, and suddenly I felt hot again.
I had been involved in the flooring business my entire life. It was all I ever knew and it had treated me well. Yet something was different now. Going to work had become a grind and I was having trouble finding enjoyment in my career. Problem customers were just the tip of the iceberg. On top of all that finances were getting tight. My family was growing, yet my income was not. Looking a few years down the road I saw college tuition, which scared me half to death.
I had to make a change, not just for me but for my family and our financial future.
When I work with mentoring clients and talk to members in the House Flipping School forum I see that fear is by far the number one obstacle to their success in real estate. Potential investors and house flippers are routinely fearful because:
- There's no guaranteed paycheck in house flipping
- One bad investment could cost thousands of dollars
- They are worried about what their friends and family may think
- They are worried about what their friends and family may think if they fail
Of course this list could go on forever...
However in all these instances, people are afraid of something that has not yet come to fruition. They are worried and anxious about something that may never materialize. Feeling this way can keep a person trapped for years, even decades in a career they do not want. Believe me, I know how it feels.
That is why I like to view fear in a simple, yet different way. Here it goes:
I'm not a huge acronym guy but I think the FEAR acronym is pretty useful and accurate. Think about what you are most afraid of with regards to making the jump into house flipping, and then ask yourself - "Is the thing I am most afraid of actually present in my life, or am I imagining it?"
How My House Flipping Team Deals with Fear
Sometimes I'll use the phrase "conquering fear" yet a more accurate and healthy way of looking at it would be "managing fear." We all feel fear from time to time. The difference between successful investors and people who never get their feet wet is that successful investors know how to manage their fear effectively.
My own house flipping team deals with fear on a regular basis. Maybe we just invested $50,000 of a new investor's hard earned money, and the project suddenly takes a turn for the worst. Or maybe it's as simple as making 100 cold calls to people we don't know, in an effort to source deals. Either way, we deal with fear each and every day, so it's important that we learn how to manage it.
In the below video my acquisition manager Bill, marketing specialist John and myself discuss fear and how we manage it. As you can tell in the video we are not "rough and tough" fearless men who are ready to climb Mt. Everest. We're just regular guys who made a decision to not let fear dictate our futures.
Taking Your 1st Step
The first step is always the most difficult when trying something new. More often than not, once you make that first step the rest of the process suddenly becomes much easier. Getting the ball rolling is always the most challenging.
I'm going to be honest here and tell you that you must be cautious when getting started flipping houses. Unless you have a million dollar trust fund to fall back upon, it is very easy to get yourself into financial trouble when trying to flip your first house. For the average investor flipping a house is a big deal and a considerable financial commitment.
I think it's best to first get your feet wet and to start off slowly. This is the exact goal of a House Flipping School membership.
Our membership program is a lot like a first date. There's no pressure and minimal commitment.
For $1 we let you get your feet wet by giving you an inside look at how my team and I run our house flipping business. If you become confused, or need help figuring something out, you can connect directly with John, Bill or myself by posting in the members' forum.
It's our way of helping you manage fear and decide whether house flipping is the business for you. Try out a membership today by clicking here.
As always we are here to help. Take care and see you at the top,
What do you think? Let us know by leaving a comment below.