017 Fear | What is Holding You Back and How To Get Over the Fear

by | Apr 1, 2016 | Podcast | 0 comments

017 Fear | What is Holding You Back and How To Get Over the Fear

 Fear can be a crippling, all consuming emotion.  Tyler Sheff and Jill Sheff talk about how to find a support system, someone to talk to, about your fears and discuss with them that you need someone for emotional support in your journey.  They discuss several types of fear in this podcast and how to overcome the fear and start investing now.

There are many fears that new investors have, or people who want to become investors and never do because of fear.

One fear is the fear of not being able to retire

Jill mentions to begin with the end in mind.  If you want to be able to retire, begin by determining what retirement means to you.  Questions new investors should ask themselves are; What do you want to invest in to build wealth?  Will your portfolio outpace inflation?  How much will you need for retirement?  Do you need a monthly income?  When do you want to retire?  

One way to achieve this is by mitigating your taxes.  The government wrote the tax code to teach you how to avoid or reduce taxation by investing in what the government wants you to invest in.  For example, oil, gas, and real estate.  Additionally, if you provide housing and/or jobs, the government will reduce your tax liability.  Tax Free Wealth and What Your CPA Isn’t Telling You, are books to help learn these concepts.

You could invest for cash flow or capital gains.  If you invest for cash flow now, by purchasing a single family home, your tenants will pay the mortgage and also produce cash flow of hundreds if not thousands of dollars, every month.  When you are ready to retire the home will be paid off and your cash flow will increase by the amount that was being paid for the mortgage. I.e., If the mortgage payment is $500.00 a month, at retirement you will receive $600.00 to $800.00 every month in passive income.  This only takes a couple of houses or one house a year.  Equity Happens and Building One House at a Time are great books covering this principle.

Fear of not being able to provide or help provide for aging parent(s)

Tyler and Jill have friends and family that fear not being able to help their parent(s) pay for their medical bills, medications, house payments, grocery bills, as well as, not being able to afford a caregiver if the need arises.

Fear of job loss

Jill was recently laid-off and although we have enough cash flow or passive income that neither Tyler or Jill need a J.O.B. they like the income and the medical benefits that come from having J.O.B.  Once Tyler and Jill sat down and determined they could actually save on taxes by Jill not having a W-2 job, they decided to concentrate on investing in real estate full time.

Investing in real estate is not a get rich quick scheme.  Tyler mentions, he thinks it is a recipe for disaster to plan to fix and flip to have enough money to then buy and hold.  Jill and Tyler both mention a couple of ways that fixing and flipping investing can be risky.  Tyler also mentions that fixing and flipping is taxed as one of the highest allowable tax brackets.  Jill mentions the tax savings associated with the buy and hold strategy.

Emotional Fears

Some of these fears are public speaking, introversion, looking stupid, fear of being told, no or objection.  Overcoming objection is critical.  Practice overcoming objections, speaking in public, and being told no, are a few ways to overcome the fear.  There is no perfect response for every objection.  Fail forward, fail fast, and fail frequently.  The more you do the easier it will become.

Tyler also mentions the person you are dealing with, may have just as much fear as you.  They usually do not want to negotiate.  They commonly fear negotiating just like you might.

Be ok with hearing, no.  Don’t take it personally.  Eventually there will be a yes.  Remember, all deals should be win win or no deal.  If you are not comfortable with negotiating or how to do the math for the purpose of negotiating then maybe a real estate syndicator is someone to seek out.  A real estate syndicator’s purpose is to negotiate.  Or call Tyler, and he will walk you through a deal, help you to be able to overcome objections, or answer any questions you have.

Jill mentions the fear of telling the world your plan for entrepreneurship.  Her advice is to do just that.  Telling the world helps to overcome that fear and don’t worry about the naysayers.

Toastmasters is a good way to overcome the fear of public speaking.  Tyler and Jill discuss beginning now, do it now and do not delay.  They give several ways to find a mentor and/or someone else like minded to talk to about fear.  Role playing can also help with the fear of objections.

Lastly, the fear of getting started investing in real estate will stop people from ever getting started.  Tyler’s advice is to get educated and to constantly seek more education. Tyler and Jill  have three educators that are priced fairly and whose methods really work!!

If you have ever considered getting involved in real estate investing, book a free consultation with Tyler to learn more about how to escape the rat race. You may also contact us via email at: info@cashflowguys.com