As an investor, what’s the biggest challenge you face? While you might say scaling your portfolio or having enough capital to fulfill your big plans, one of the biggest struggles investors face is internal. After all, we’re human. When it comes to our money and something as big as one’s financial future, investment decisions can be scary.
We can get caught up in analysis paralysis, waiting for our perception of ideal timing, or worrying about all of the what-ifs.
Anxiety is born from the unknown. For a long time, real estate investment has been a known — moreso than other investments. However, 2020 has shown us that the real estate market is full of surprises. Record performance in the year of a global pandemic is not something many of us expected. And while some choose not to look a gift horse in the mouth, others are waiting for the other shoe to drop.
Are these real estate anxieties founded in reality? And what can you do if you find your worries hindering the growth of your portfolio and your wealth? We’ve got the answers.
Where Investing Anxiety Comes From
Anxiety comes from the unknown. Our lack of knowledge and lack of control over the future contribute to worries, sleepless nights, and undue stress. Anxiety is a natural emotion, particularly when facing uncharted territory or a potential disaster.
Of course, we tend to feel more stressed about stock market outcomes than the real estate market. 2020, however, has been a strange year. We’ve experienced the unknown on multiple fronts, and if you’re like most people, you’re probably tired of the unprecedented.
With our worries pulled in a thousand directions, investing in real estate should be the last thing we’re left stressing over. If you’re feeling anxious about your real estate investment outcomes, allow the reality of your situation to bring you a measure of comfort and security in strange times.
4 Realities That Calm Real Estate Investing Anxiety
Real estate hedges against market volatility.
Unlike stocks, real estate is not a volatile asset. It’s long been known that real estate is a hedge against inflation. A single-family rental property isn’t swayed by the ups-and-downs of the stock market. Even if real estate and the economy share a connection, it tends to be a stable one. We’re seeing that this year more than ever.
When the rumors, then reality, of a new economic recession sunk in, we saw that it did not have a massive impact on real estate. Our last traumatic memory of a recession was The Great Recession, a situation that heavily involved and impacted the real estate market. In a traditional recession, however, real estate is far less impacted. It will cause a market shift, but it, like all things, is temporary.
All things considered, real estate is a more stable, predictable asset that does not suffer in times of inflation. As a physical asset, it is much more secure!
Be sure to check out: Faith Versus Fear for Real Estate Investors
The market always moves in a cycle.
We’ve discussed the real estate cycle at length. The thought that real estate moves in this predictable pattern can be soothing to one’s anxieties. We’re never left wondering what will come next — we know that the next step in the cycle will come eventually, and with it, the next, until the pattern repeats.
Real estate is an old and proven investment — long considered one of the best ways to build wealth. Real estate is always in demand in some way or another. People always need a place to live. Because the market moves in a cycle, we can study it, predict it, and strategize for each stage. There’s a lot of room for preparedness here than we don’t see in other types of investments.
Take comfort in the fact that you’ll never miss your “one shot” when it comes to real estate investment. You have lots of opportunities in every season of the cycle. If you’re finding things difficult now, take heart — it will all change in due time.
Numbers tell a true story.
Gripped by investment anxiety? Look at your numbers. Our emotions can tell us a great many things, but discerning the truth is more difficult. Have a chat with your advisor if you’re concerned. Analyze your plans, numbers, and trajectory together. Numbers offer a concrete view of the reality of your situation and can guide you in your decision-making. In face of anxiety, look at the facts, then make a plan. You may not be able to predict what comes next, but you can know exactly where you stand.
You have professional support.
Real estate investor, don’t try to do it alone. Not only is bearing the full burden of investing in real estate more than a full-time job, but you need the support and experience from those who have gone before. If you’ve never invested before and are looking to strike out on your own, no wonder you’re feeling anxiety!
REI Nation doesn’t let investors figure things out on their own. We’ve done the trial-and-error ourselves. We’ve refined our systems. We have unprecedented attention to detail. Lean on the expertise offered to you by our advisors, management teams, and support network. We’ve been in the business for over fifteen years. That means we went through the Great Recession and we came out stronger.
Turnkey real estate investors can trust that they and their portfolios are being taken care of the right way at REI Nation!