#178 Top 4 Fears Of Investing In Real Estate

Hey, everyone, have you ever thought about investing in real estate? But something has kept you from doing that, probably some fears or concerns. If so, this episode is for you. We're going to talk about the top four fears of investing in real estate and how you can deal with those. So stay tuned. Welcome to the Passive Income MD Podcast, where we talk about creating your ideal life through multiple streams of income. If you enjoy hearing about this stuff, make sure to hit subscribe. Now, let's get on with the show. Hey, everyone, and welcome to another episode of the Passive Income MD podcast. I'm your host, Dr. Peter Kim. And today we're going to talk about something that I know a lot of us don't like talking about. It's our own fears, and particularly the fear of investing in real estate. Now, as doctors and physicians, it's hard to approach our jobs with fear. We usually bring data into it, we bring experience into it. And of course, there was some fear early on as we were training. But later on, we don't normally think about fear in our daily lives. We just do what's necessary to take care of the patient. Some of you are in life's critical moments, and of course there's probably a little fear, but that's overridden by adrenaline, by this great sense to do the right thing, especially when you're running codes or dealing with surgery. You put all that aside and you do what needs to get done. But when it comes to investing in real estate, since it's something that's somewhat foreign to a lot of us, a lot of fears pop up and that actually keeps us from taking action or moving forward. Now, I got turned on to the idea of real estate investing back in 2013, 2014, when things weren't happening that well for me at work. What I expected to happen when I became a partner at my job, it didn't really materialize. And I realized that I need to figure out some other way to create income. So I started asking as many people as I could out there. And it just seemed like a lot of the doctors that had freedom, that they were happy at their jobs, they had figured out some other way to create income, and most of them were actually doing it through real estate. So I started diving into it myself. I started reading books, listening to podcasts, going to real estate investor meetings, but it was really intimidating. I was extremely scared. So many what ifs. And as doctors, we're trained to think about risk benefit, and we are typically pretty risk averse because we don't want to harm people. Or patients. So I wanted to make sure I had all the information in front of me before I took action. And there was a ton of fear there. So I thought I'd talk about four of the ones that I dealt with. Maybe you're dealing with them as well. Fear number one, it's the learning curve. In the beginning, I had spent so much time and energy to become proficient in what I was doing. We all go through med school, we go through residency. I did a fellowship in OB anesthesia all of those years just to master one subject in one particular specialty. And I get it. When it comes to real estate, it can seem pretty daunting. Do we have to go through all of that again before we can be out on our owns? You have to understand markets, managing properties, due diligence, everything in between. A new language, actually. And the learning curve for all of that can feel really steep. We're already so busy trying to master everything else in our personal lives, professional lives, that the idea of adding something else on it can just seem really overwhelming. Now, being on the other side of this, I realized that there are some complexities, but. But it's nothing like we've learned in medicine. If we've done that and we've gotten to where we're at, I will tell you that you can do this. There are some foundational principles that you have to learn. But if you learn and consistently learn over time, it's not stuff that we can't understand. It comes down to a lot of basic principles that I think you and I inherently understand. The concept of location, the concept of value, of potential gains. And I know that the fear here isn't about the subject itself. It's about not feeling fully prepared, not having the education behind us like we do with medicine. But if you remember, all of us started from the very basics, and we had resources and people to guide us. I'll tell you that real estate is exactly the same. There are a ton of resources out there, if you just know what to tap into. And there are people that can guide you and help you on your journey if needed. As some of my friends say, if you can do med school, you can learn real estate. I mean, we're some of the most ambitious, educated people out there, and we can manage something as complex as the human condition. But personalities and everything that goes with it, I promise you, you can learn real estate. The second fear that I hear often is I don't have time. And I get it. We are busy professionals. I just looked at this report recently where they had these different specialties broken down by how much time we spent in a given week. And there's no such thing as a 40 hour work week for a full time physician. We're all 50 hours plus and we're busy and we want to come home and take care of our families. And it just seems like we don't have the time to figure out what to invest in, who to invest with. We worry that if we're a landlord that we have to take care of leaky toilets and plumbing issues at 2am on the weekends. The truth is that investing in real estate is a complete spectrum from the more active to the more passive. The more active usually means that you own, you own properties and you help manage them, or you find other managers and you manage those managers. Then there's everything from that to something completely passive where other people do that and you leverage their experience, knowledge, hard work, sweat equity, and you invest with them for a return. And at the end of the day, we all make time for what's important to us. So if you truly believe that real estate investing is going to be able to help you create that additional income to be able to buy back some of your time, if you absolutely believe that you will put in the time to figure out how to invest in it and invest in it, well. But depending on how much time, energy and effort that you're willing to commit into it, you can find something in real estate that actually fits that to get your objectives. The key to beginning is understanding what those opportunities are. And of course, being a part of community like ours hopefully helps you in that way. But thinking that you don't have enough time should never be a fear that keeps you from investing. Okay, the third fear is a common one. It's I don't have enough money to invest in real estate. It's actually one of those myths out there that you need to have a tremendous amount of money lying around to invest in real estate. I will tell you some methods within real estate to provide a good amount of capital. If you're going to go in and buy a large apartment building on your own, yes, you're going to need some capital to put up. But there are different ways to invest in real estate with what you have today. I tell people my very first investment in real estate was a $5,000 investment online. It was a debt deal where I acted as the bank lent out 5,000 to a fix and flipper. They returned interest to me and the capital. All of the rest of my investment back within 12 months and it actually showed me what's possible, and it showed me that I'm able to take the money that I make from working as a physician. I can funnel it into something else that actually creates more income for me and. And creates more time freedom for me at the end of the day. So that 5,000 became 25,000 became 100,000, but I still make those investments that are closer to 25,000 and 50,000. I've made investments that are significantly more, and I've made ones that are less. So when it comes to not having enough money, I tell people, you can start with where you're at today. Then if you listen to one of my previous episodes where I talked about where to find money to invest, just know that there might be some capital tied up in places that you didn't even know we're there for you. There are some retirement accounts that you might be able to use. There might be some creative financing, some partnerships that you can create to acquire that capital that you need to start investing in real estate again. The world of investing, real estate, it's huge. There's so many different ways to get involved. So there's likely a strategy out there that fits your financial situation and your goals. And I know one of the biggest fears now is what's going on today. Is this the right time to invest? The current market conditions now, there are no guarantees in investing. There's no guarantees in life. You could walk across the street and something could happen to you. But I know the world of investing, for a lot of people, can feel quite uncertain. You're putting your money at risk. And we all want to follow Warren Buffett's rules, which is, number one, don't lose money. And number two, remember rule number one. And so we're thinking, if we invest right now, is this a bad time? Especially with what's going on in the economy, in the market and where it might go? I will tell you the market is cyclical. It goes up and it goes down. It's actually these fluctuations which actually create opportunities for people. If it were completely stable the entire time, then there'd be no efficiencies, there'd be no opportunities for gains. It'd be no opportunity for people to use their own intelligence and hustle to do better. They even say that during economic downturns, that's when the greatest wealth transfer happens, is when many of the largest businesses out there, that's when they started in economic downturns is when you talk to a lot of savvy investors. That's when they actually did the best. But I can tell you that when you try to put a lot of timing into this, that's when a lot of us go wrong. If you can think about your strategy as a long term thing, that you'll be investing through all parts of the cycle, then you mitigate a lot of risk. You focus on long term growth, and it's this long term thinking that can weather whatever storm that you might be in. It's about talking to as many people who have invested in different parts of the cycle and figure out how they were opportunistic at different times. It's not about waiting for that perfect moment, but it's what is the perfect investment for today. And, and what kind of expectations should I have? For example, I know a lot of people who invest in apartment buildings and today they're expected to get the same returns that they got five years ago. So they're just waiting. And I tell them they're probably unrealistic and they'll be waiting for a very, very, very long time. But I tell them there are opportunities in front of them. Now it just might have shifted a little bit in terms of the return, but also the risk might be different. The risk might be better now that a lot of the prices or a lot of the fluff has come out of the market, may not get those flashy returns, but your risk is also less if you know what to look for. So I don't know if any of those fears resonates with you, if you've ever felt them, you're not alone. It's kept me from investing in the past, but when I actually examine these fears, I realize that there are ways to overcome and mitigate the risk in all of these situations. If you can find the right mentors, you can find the right community, the right educational resources, it can put you in a position to take advantage of any part of the market cycle and the opportunities that are available to you. Personally, I think we're entering this period right now where, where the greatest opportunity exists for us as investors. There's a lot of fear out there and a lot of uncertainty. Again, if we educate ourselves, stick together, share opportunities and resources as well as the due diligence, I know that we can make smart decisions together. That's really the big reason we created Passive Real Estate Academy to begin with, to help people confidently invest in passive real estate investments like syndications and funds. It starts with education, but it's also about building up a community of around this. It's also about building up a community around this for people to share opportunities, again, vet deals. Together, we have several thousand people that are part of this community for life. Right. And we're making smarter decisions together. I have no doubt we're positioning ourselves to take advantage of this upcoming cycle. And you only get one or two of these in your lifetime. I believe absolutely in your prime. So if you'd like to be part of a community, we're going to open our doors pretty shortly. And again, we only open it up twice a year. Go to P E A now the or passiverealestateacademy.com you can get on our wait list. We'll let you know when we open doors. And we have a special discount available just to our wait list. We've revamped it to be relevant for this time and we're excited to walk through this part of the cycle together. My hope when I talk about these fears is just to show everyone we all deal with the same struggles. We're not just medical experts, we're people. At the end of the day, we have a diverse set of goals, interests. But where I think we're all aligned is that we ultimately all want freedom of choice to do the things that we want to do with the people that we love. And thanks for being part of our community, listening to this podcast each and every week and sharing it with others. Let's talk again soon. Take care. Hey, everyone, I have a question for you. What if there was a way to make your money work for you instead of the other way around? Let me ask you, are you looking for a way to create passive income and secure your financial future? Or maybe you've stayed away from real estate because you don't have time to be a landlord. Then I want to introduce you to Passive Real Estate Academy. It's the revolutionary platform that we created that teaches you how to invest in real estate passively with little or no effort on your part. In just four weeks, our comprehensive course will teach you everything you need to know about passive real estate investing and help build that confidence in you so that you know that you're making a great investment choice. We created this course for busy people like you, and we're gonna guide you from every step of the way, from understanding the even the most basic information to understanding the jargon and understanding underwriting so you can make sure that you're making a great investment, that you're maximizing your returns and minimizing your mistakes. And the best part, you can do this all from the comfort of your own home. With absolutely no prior experience required. So it's time to prepare yourself and learn so that you can be ready for these deals that you see. Because the time is coming. So don't let the demands of your job or the current economic climate dictate your financial future. So join Passive Real Estate Academy and build that confidence to know that you're making a great investment when it comes to syndications and funds. So visit our website@ passive realestateacademy.com to learn more and take your next step to financial freedom.