A bumpy real estate market can be quite a ride. For many investors, nothing matches the fulfillment in making money and watching it grow. But when the real estate market begins to crash, investment fears come into view.
Although feeling afraid is natural (and can be helpful in some instances), these fears may affect your ability to handle unforeseen situations and can lead you to make rash decisions. That is why it is best to be prepared and confront these fears before they take over your life.
Take it from Warren Buffett’s Advice on Investing:
Investing for Long Term: “Do not take yearly results too seriously. Instead, focus on four or five-year averages.”
Dealing with Investment Losses: “Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.”
Having A Good Reputation: “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
Coping with Market Crashes and Recessions: “Predicting rain doesn’t count, building the ark does.”
Things to Remember When Fear is Holding You Back
The real estate market will rise and fall. You have to acknowledge the fact that investing in real estate is unpredictable just like any other investment. It’s how things go. Even if you have been investing for a long time, you can never accurately predict how the market will perform in the future.
So, when fears set in, remember and try to apply Warren Buffet’s pieces of advice to your investment journey. Continue to diversify your portfolio and avoid letting fear consume you. This will affect your decision-making and may stop you from achieving the wealth you desire.
How to Handle Your Investment Fears
Recognize that fear is a normal human reaction. You will have to experience fear at some point in your life.
Minimize your risks. One best way to do this is to diversify your portfolio and leverage what you can. I teach people how to leverage by using my FLEXX model and purchase real estate creatively without banks, credit, or rehabbing houses. If you follow this model, your chances of losing big chunks of money have been minimized.
Make wise investments. Research is key. Make sure you understand what you are getting yourself into. Learn from others’ experiences, decide on what method you would like to use, and plan your move with confidence.
Acknowledge and confront your investment fears with tools and skills to overcome them and to have a successful investment life. Learn from the experts and build your experience. You can do this!