Analysis Paralysis & How To Beat It

You may be thinking about getting into real estate investing, but just don’t know where to start. There are just so many things to consider, and so much is at stake: if you succeed, you’ll create a stream of passive income and become financially free. But what if you don’t?

If you’ve ever been in a place where you just can’t decide whether your decision is right or wrong, or you find yourself stuck while even trying to make the said decision, you’re not alone.

This phenomenon when you can’t seem to decide has its name. 

Analysis paralysis. 

It is one of the reasons most people who’re interested in getting into real estate investing back up. It has nothing to do with the risks they’re aware of, it’s the simple inability to decide because of the analysis paralysis. 

Analysis Paralysis in real estate would mean the inability to make investment decisions because of overthinking and overanalyzing the available data.

As a result, investment decisions are never taken. 

It’s most common among first-time real estate investors since it’s a big deal to buy an investment property – almost no one has millions of dollars just freely laying around.

Considering the risks of investing, it’s even more understandable – no one wants to lose that kind of money.

But how do I deal with it, you may ask?

Today we’re sharing some tips on how to beat the analysis paralysis when it comes to investing in real estate. 

1. Have clear objectives.

Sometimes we are unable to make a proper decision because we simply don't know what we truly want. The problem is that the real estate industry is really broad and the options to invest are pretty much limitless – so you find yourself just browsing and comparing them, unable to understand what’s best for you.

The solution to this problem is to simply define your objectives and focus just on them. 

Start by having a clear understanding of what you want to achieve by buying a property. Try to create a timeline by asking yourself if you're investing for the short term or long term, and decide if you want your investment to be active or passive. 

Create a business plan, even if it's just for yourself. Break the bigger objectives into smaller tasks and goals so you can easily track your progress. 

2. Don’t look for perfection.

Yes, it’s important to always strive to be perfect. However, while we’re looking for perfection, a lot of good options become simply invisible to us.

There always are going to be reasons to not invest. Sometimes you just have to do it. 

If you’re just getting into real estate investing, don’t be too hard on yourself when it comes to purchasing your first property. What you need to focus on is getting started, growing your portfolio, and getting experience. Once you’ve done it, it’ll be so much easier to grow. 

3. Seek guidance. 

Sometimes, investing decisions need to be made quickly, which can be intimidating and lead to overthinking. 

This is why sometimes the best option is to reach out for guidance – no matter if it's a real estate agent or mentor. Having a person with experience in the industry right by your side is helpful, especially if you’re feeling stuck - sometimes all you need is a look from the outside.

If you feel like you’re getting into analysis paralysis, contact us today and we will help you get your investment journey started.