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So the big question is this, what would you do if money didn’t matter? So you had millions in your bank account, what would you focus on? Would you spend more time with your family, with your wife, with your kids? Take family vacations.
Would you pursue your gifts and talents and dreams? Serve your local community, teach others, serve your church. You see if what you would do if money didn’t matter, it was pursuing your gifts and talents and dreams to serve others, and that is probably what you should be doing.
The problem is most people are in the rat race, living five inches in front of their face with no time to pursue what they were born to do. That is the problem, and the solution is to develop enough passive income to replace your working income so you can quit your job and be free to live your life the way you were created to.
That is a solution and this podcast will show you how…
What’s happening everybody? This is Ryan Enk!
And welcome to episode number 32 of Cash Flow Dad Life…
In this episode, we’re going to be going over four techniques to eliminate your fear to get started investing in real estate. Here’s a quote from a famous actor you might’ve heard of him will smith.
He said that God places the best things in life on the other side of fear. He said that before jumping out of an airplane. So, uh, before we get started in this episode, I am reading our reviews once a week and I’m going to read our review this week is from Mary Lamar…
She says, “Thanks to Ryan Enk, I can actually get started now with real estate. I never really understood how simple it could be, but now I know. He explains things so simply. Everyone should listen to this if you want to bring in extra income to your family! :)”
Well, Smiley face to you too, Mary. Thank you so much for the review.
And guys, let’s make it official…
If you’ve been listening to my podcast for awhile and you’ve gotten a lot of value out of it and it’s something that you would encourage other people to listen to, please subscribe so that you can be made aware of opportunities when they come up as they come up and to please write me a review.
And if the review is good enough, I will read it in one of the episodes. So that’s it guys. Awesome.
So let’s talk about fear and it’s something that I kind of underestimated being in this phase of the game 15 years after investing in real estate, but after talking to people who are beginners or considering doing it, it’s like the number one thing that’s preventing people from getting started is just this idea of, you know, it’s a colossal undertaking.
And I had to go back into my archives of emotions to really figure out how I worked through and Kinda trouble-shooted some of these fears that I had when I initially got started as a real thing.
And it’s something that, uh, I want to share with you guys for techniques that you could use to eliminate your fear so that you can get started.
Now, first thing you need to realize is that most fear is irrational. If you’re someone who hesitates to pull the trigger on things because of fear, a fear of the unknown, fear of risk. You’re not alone.
There’s many people. Actually, most people struggle with the same thing. I don’t remember when I was having my first child. A lot of you might remember that feeling you had when you were first, when you’re having your first child. Now I remember specifically the night before my wife was going to go into the hospital, get induced.
That fear hit me like a ton of bricks…
It’s like all of a sudden, you know, shit got real. And so I, I just went home, I hugged my wife, I told her, look, I just need to sit down for a second because I’m realizing now that tomorrow I’m going to be a dad.
So I sat down in my recliner chair.
I have four full fingers of whiskey and I just stared into outer space and just let my fears run wild for a second. So there’s all these questions that I had, you know, it always starts off with like some somewhat rational questions and then as fear begins to creep in more in the uncertainty of the unknown, the questions become more rational.
So start off with, you know, what if, what if the baby comes out and it has like some sort of defect or deformity?
Well, the next one is, you know, I can barely afford to take care of myself and my wife. How am I going to afford to take care of a kid? What if I don’t like the kid?…
You know, these are somewhat normal rational fears. And then it morphed into, you know, what if, when he’s 16, he sucks at sports and he takes up hanging out with the wrong crowd, gets addicted to crack cocaine, starts robbing people for money. He gets thrown in jail.
I have to bail him out because he’s a little on the weak side and I don’t want him to get taken advantage of in prison and I don’t know what they’re gonna do to him in prison, but I have no money, so he resents me for being a crappy father who can’t provide for his family and he starts wearing eyeliner.
You see where I’m going with this? I mean, you just basically your mind run a muck with fear. I began to create these illogical fears. Of course, there was literally nothing that I needed to be concerned about. In reality I was able to provide. God provides.
He’s been doing so for thousands and thousands of years…
I was just scared of the unknown by my fifth child. The only thing I was worried about during birth was whether or not my local store still had my favorite celebratory Scotch in stock.
So it’s something that after you’ve done it for so long, it’s just like, you know, some people were getting started with real estate. They’re like, oh my gosh, I can’t believe this….Buying a house. And people are, you know, investors of buying one, two, three properties a month or like, dude, it’s just a house. It’s not a big deal, you know, it’s just a house.
So real estate investing is actually really similar to having kids. The more kids you have, you’re like, it’s just a kid, you know, not a big deal. Um, it’s, it’s a pretty powerful fear that comes from the unknown and perceive risks.
So sometimes when I present people with an awesome opportunity to become financially free with real estate, I hear them go through similar rational first, but then irrational patterns, either trying to prove the concept wrong or just trying to give them a reason not to have to think about those fears.
Now, you might laugh at this, but I promise you this is almost verbatim what I got from one guy that went to one of my presentations to start out with normal, well, what if I lose money? Okay, well then you use other people’s money who are willing to take property as collateral for repayment.
That way you don’t have to risk your own…
Well, what if I go bankrupt? Well, you won’t go bankrupt if you do it right, you can set up an LLC, you use other people’s money to buy the asset and buy the asset at a discount. You don’t personally guarantee the loans that the only thing exposes your LLC. Worst case scenario, you can’t pay the loan back. You don’t declare bankruptcy. You just let the Lien holder foreclose on your LLC. And they take the house back in their name.
What did you lose? Literally nothing. You never used your own money…
It doesn’t affect your personal credit because didn’t personally guarantee it and you put it in the business name. You only lost the house you didn’t have before that you bought with someone else’s money. And what did they gain? They gained the house that they were able to finance at a discount rate.
It’s kind of a win win even if you lose….
So the next question you went into is, well, what if my family has to go homeless because of this risk? And I just thought to myself, I can’t understand a possible scenario where this could actually happen. And uh, then he said, what if the tenants, that’s the place on fire and said, well, you just make an insurance claim and you don’t lose anything, you probably actually come out even better.
So if you’re, like most people, if you’re afraid of doing something, you’ll start with these reasonable fears and then kind of gradually moved to irrational. So here are four techniques that you can use immediately to combat those fears of risk.
Now, if you are just wanting to be lazy, um, which you see a lot of people like, they’ll, they’ll, they’ll either come up with illogical fears or they’ll call something a scam.
And that’s just being lazy is because it’s way harder to make a change in your life than to believe that something works. Real estate, I mean, it’s impossible to argue that real estate doesn’t work almost. I mean, you see like the world’s richest people in the world, all of them have real estate as part of their portfolio.
So if you are in the camp of you just have these natural fears, you’re not trying to prove anything wrong…
You know, you’re not trying to be lazy, you just have natural fears. Here are four things that you could do that will really, really help you. So the first technique is you need to remember that risk is always, always, always decreased with knowledge. Many people have these fears about the unknown, but instead of just learning, they just give up because it’s easier and less challenging. So the simple solution to the unknown is to know.
So you might think to yourself, “What if I buy a house that it’s, you know, it’s over its value?” Well, it literally takes 30 minutes to learn how to perform. A Cma, you know that’s a in the real estate world is called a comparative market analysis on a property. So learn how to properly analyze property and you eliminate the risk of buying something that’s priced too high.
Most risks can be completely mitigated with knowledge…
Are you afraid of losing money? Will learn to use other people’s money? Are you scared because you don’t know how to structure loans. We’ll just learn how to structure a loan. You’re worried that you won’t find any deals. Will learn strategies on how and where to find them. If you’re worried about an exit strategy, if the market goes down, we’ll learn about your options and pick a strategy that protects you from market fluctuations.
That’s the formula that you need to remember. Increased knowledge always equals decreased risk. Okay, so that’s technique number one. Simple solution. Learn, learn more, risk less. Technique number two is actually a really cool technique to go through this mental exercise.
You got to be okay with the worst case scenario and just think it through law a rationally, so first off, like I said before, you can literally up a real estate investment so that in the worst case scenario that you lose nothing. You just fail and have to give the house to the lien holder.
Your personal credit stays where it is. You don’t lose any money, but let’s just humor your worst case scenario for a second and say you risked your own money. What’s the big deal? It’s just money. You can be resourceful and get some more. You might have to make a few lifestyle adjustments, but worse things have happened to people.
Most millionaires that I know have gone bankrupt at least once. So what? Robert Kiyosaki, the godfather of real estate investing to me when his net worth was about $80 million mark, he went bankrupt and use bankruptcy laws just to protect his assets. It’s really not a big deal now. I rarely watch shows.
I don’t watch a whole lot of tv, but we had this hurricane, that mode through the other day…
So I had to just a day of, of uh, you know, just sitting with my kids and watching TV and they’re into this tv on the history or the show on the history channel called alone. Uh, if any of you guys have seen that, it basically, the concept of the show is that they take 10 people, they drop them off seven miles or so apart from each other on Vancouver Island in Canada with minimal survival gear and just see who lasts the longest.
At any point, any contestant could push a button and they’d be picked up. The last one standing would win $500,000. There was a huge difference between the guy who won, who’s name was Alan and most of the other contestants, and, and that was that Alan was okay with the worst case scenario.
On the other hand, a contestant who hadn’t eaten in a day would go out to fish, uh, to go out and check his fish traps and you say, I don’t know if I’m going to do if I don’t eat, if I don’t get a fish, it would be the worst thing that could possibly happen right now.
Then if they didn’t find a fish, they would just push that button and they’d go home. On the other hand, you had allen who won, who hadn’t eaten for three days straight, would go out to his fish trap, find no fish, and then he would just look and say, you just look up and say that’s okay.
That’s okay. And every time something happened that was tragic to the other contestants that would make them freak out and press the exit button, Alan would just say, that’s okay. And he just think his way out of it. The other contestants got nothing. And Allen got $500,000. So I encourage you guys to learn the lesson from this, to really attack your fears about the worst case scenario. Imagine the worst possible thing that can happen and then just say, okay, it’s really not that bad. Maybe I’m just being a little too dramatic.
You know it’s not that bad…
If you can imagine your worst case scenario, say that’s okay, that will help you mentally push through and you’ll be able to accomplish a lot more and you’ll, you’ll be able to accomplish the success that your fear is trying to cripple you from. Okay? Now here’s technique number three.
Change the way you think about failure in the first place. Many people don’t even take the most calculated a risk because they’re scared to death of failure. It’s actually goes against the laws of nature. Because if you look at nature, success is only achieved through failure.
Your muscles only grow by putting them through muscle failure. It’s only through toils struggle, pain, you know, these sort of, you know, constant failures…
That new life comes into the world. People grow, they get stronger. But I’ve got my personal theory on this and it’s that school kind of teaches us, gives us this pattern of this mindset that failure is bad. So if we get an F in school, it’s a bad thing. And so with this kind of mindset, we go through life trying to avoid failure instead of finding ways that we can take risks, fail and learn from it.
Instead of seeing failure is bad, we could see it as necessary to get better and to grow. And there’s that old story about Thomas Edison who created the light bulb. He said the one he was being interviewed by a like some sort of reporter and the reporter was like, you know, what did it feel like to fail 10,000 times to invent the light bulb? And he just responded, I didn’t fail.
I just learned a thousand times what didn’t work. Okay.
So you have to approach failure the same way in your life in order to get rid of that fear. Like, you know, I, I, well I just don’t want to fail this perfectionism like failure. See it as actually a good thing that you can actually learn from and move on. That propels most people to success. If you read any major success story, there was a major failure involved that propelled them there.
Okay? Alright. Principle technique number four is to practice your way out of fear. So some people are just afraid to pull the trigger because they lacked confidence in that lack of confidence comes from not having done something before. So if you have lacked confidence in the past, uh, you are probably susceptible to that dream, you would probably agree with me.
So if you’re like, I kind of like lack confidence to do things, well you probably is all. I have also had that dream of you being in class with nothing but your underwear on their psychologist that had so many people have had this stream.
They’re psychologists have actually studied in cycle and Al analyzed why people have this dream and what they’ve concluded that this dream of fear is that people have based on the fear of being exposed for their lack of knowledge or their lack of experience.
That’s what it all comes down to. I actually just kind of embarrassing, but I had a similar real life experience. Eighth grade and eighth grade was bar none the worst year of my life. Um, I had just moved from New Orleans to Houston and I was always good at sports, so I thought the best way for me to make new friends was to join a sport and excel at it. Well, the first day of school I decided to try out for the tackle football team.
I played football all my life in the neighborhood every day at recess in the school yard. Even played tackle football. We played tackle a man with a ball and you know, constant neighborhood tackle, football games. But there was one problem I had never actually put on pads.
So the first day of school I made this decision at the last minute to trial for football…
My parents didn’t have time because I made the decision at the last minute to go to the store and get me gear. So I ended up just using some hand me down gear from the school. Like the school just had like this, this used gear, so I put it on the football gear that the school gave me and none of it fit, but I didn’t know the difference of whether it fit or not because I’d never really put on football gear. I didn’t know what to compare it to. I didn’t, I just thought it was normal, but everything was really loose. The pants, the helmet…
So right out of the gate, after getting dressed in the locker room, I go out on the field and the coach has us run a warm up laps around the field. So if you can imagine this picture, this scenario, the cheerleaders are out practicing on the outside of the field.
[15:18] The track team is practicing. Everybody’s out there on the field. The coaches are watching, taking notes on who’s you know, which kids are good and that what and me trying to impress potentially new friends on the football team, the cheerleaders, uh, the coaches that were, were, you know, sitting there with a clipboard.
I decided that the very first thing that they’re going to have me do run, take two laps around the field, I’m going to run in front of the pack. So I’m hustling along in front of everyone and as I turned to make my second lap around the field, I notice at the people around the field are kind of pointing and laughing and my direction.
So I think to myself, that’s weird…
Were they laughing at? So the next thing I know we’re finished with the lapse, so I go on and keep on running, but the next thing I know we’re finished with the laps and I go back over by the coaches.
Everybody kind huddles around the coaches. All the kids are looking at me, people are still looking at me and one of the coaches looks at me and says, son, go over there and put your damn pants back on. So apparently my pants were so loose and the way to where football equipment was so weird to me that my pants had literally fallen off while I was running.
And I didn’t even realize it before…
I had streaked around the field a few times in my underwear, so needless to say, this was a painful experience and many people I’ll be at not this bad have fears based on painful experiences that happened because they either lack of preparation or experienced before they went to do something.
So what do you think I did when I went home? Besides cry for awhile. I told my parents that I needed some football pants that fit me.
Then what I did is I went into the privacy of my backyard and I ran around in them so I can get used to the way that they feel and how to move in them. So think of real like a real estate contract, like putting on pads for the first time before you actually execute and official real estate contract where there’s real risk involved.
There’s a great deal that you can do to increase your confidence and to simulate the entire real estate investing experience so that you’re confident the first day that you actually use a contract.
So you can practice analyzing deals, you can practice structuring loans, you can practice it, practice measuring Roi, you can go practice making offers even and talking to people and negotiating, and all you have to do is use what’s called an Loi, a letter of intent use that it’s a nonbinding agreement, and you can just start going out and practicing what this letter of intent until you get good at it.
So you can get good at negotiating and you can do it without risking money, without contractual obligation. Practice making offers. All of real estate can be practiced before implementation. So guys, remember that as the fourth technique, practice makes perfect, but even better practice gives you the confidence to eliminate your fears and to move forward. So, speaking of practice, just quick announcement and announced it on the last podcast https://www.cashflowdadlife.com/cruise is going to be amazing.
It’s coming up in November, November 15th through 19th. And if you’d like to be a part of the cruise come hang out with me. The entire purpose of this cruise is to learn how to replace your working income with passive income through real estate investing, but the the biggest benefit of going on this cruise is that I’ve got the simulation program and we actually simulate.
We will actually practice the entire real estate investing strategy…
The entire process we go through the process of going from being in the rat race to a being financially free. That entire process is simulated, is incredibly beneficial to practice it and to simulate it. Okay? It gives you the confidence to move forward. So if you’re interested in going on that cruise, check it out. It’s https://www.cashflowdadlife.com/cruise.
Okay, so once again, if you’re interested in going on the cruise, that’s https://www.cashflowdadlife.com/cruise. So that’s it guys. Those are the four things you need to conquer. Any fear moving forward to start real estate investing. Number one, risk is always decreased with knowledge. So whatever you don’t know, if you’ve got that fear of the unknown, just go seek that wisdom to know the number to be okay with your worst case scenario.
And think things through rationally…
And number three, change the way you think about failure. See failure as a necessity-a catalyst to success instead of a preventative. And number four is practice your way out of fear.
Thanks for listening. Please remember to rate and subscribe. You’re going to want to listen to every episode as soon as it comes out. It hasn’t been an idea or strategy that can literally change your life.
Listen, don’t miss out on the free investor pools that I have on my website https://cashflowdadlife.com/. So go to https://cashflowdadlife.com/ gets a free swag and lists and hit me up. If you want to talk about how we can get you out of the rat race as soon as possible. Until next time. My name is Ryan Enk and this was Cash Flow Dad Life!