Have you ever felt stuck? Stagnant? At some time or another, we’ve all felt like we’re just not moving. We’re not advancing. Something just isn’t working and growth has ceased. For the real estate investor, it can happen, too.
While all of us want to be growing our passive income and reaching our goals, we have to be honest with ourselves when we’ve reached a plateau. There are times when we might not be getting where we want to go. If we're stuck, there’s a reason.
These are six common reasons investors get stagnant in their real estate investment careers...and how they can get unstuck.
5 Reasons Real Estate Investors Get Stuck
You got gun-shy.
Say something went wrong. A risk went unmanaged. The unexpected happened and you ended up paying for it. An investment went south. You lost money. This can make any investor gun-shy. If you’re feeling fear over your investments—fear of failure, fear of losing money again—that fear can be paralyzing. It can prevent you from taking chances. It can stop you from seeking opportunities and trying again. While it makes sense to step back and take time to recover from a blow, you can’t expect to be successful if you never get back up on the horse.
Investors are always taking a risk. It’s an essential part of this business. For you, the best thing you can do to overcome fear is to fight it with due diligence. The more information you have, the more bases you cover, and the more risk you manage, the less likely that risk has a chance of causing you trouble. Learn from your mistakes and come back swinging as a better, stronger investor.
You got complacent.
When we get comfortable, we tend not to grow. Complacency causes real estate investors to stop seeking out new opportunities and new chances to grow their wealth. Maybe you’re at a number of properties that you’re comfortable with. You’re earning “enough.” And the idea that you’re comfortable has you stuck. Maybe you’re just not excited about investing anymore!
If you want to shake it up, it involves looking for ways to do so. Set new goals for yourself. Maybe it’s trying a new investment strategy or seeking out a new market. Decide what you really want to do with that income of yours. Goals allow you to have focus. Whether they are investment goals or personal ones, giving yourself drive will re-energize you!
You aren’t involved enough.
Passive real estate investors can often fall into the trap of believing that passive means uninvolved. Not so! Being a passive real estate investor still demands that you direct your own course. While you may not need to deal with the more unpleasant details of your investments in the day-to-day, the big picture is all on you. If you’re feeling stagnant, maybe you’re not steering the ship like you ought to. If that’s the case, perhaps it’s time to get more involved.
How? Communicate and collaborate with your turnkey real estate provider. Take full advantage of the update you receive from your management team. Make the most of these valuable connections!
You aren’t looking at the details.
Sometimes real estate investors get stuck even when they’re active, moving, and trying to get things done. Part of that may be because there’s something in the details that is sapping the effectiveness of your efforts. Maybe there are hidden costs killing your profits. Maybe little mistakes are adding up and killing your cash flow. Whatever it might be, overlooking the details might be what’s holding you back.
They say the devil is in the details, and they’re right.
You don’t look for opportunities.
Maybe you’re stuck because you just aren’t looking in the right places. For real estate investors, location is everything. If you find yourself unable to move forward, it may be because you haven’t been capitalizing on new opportunities in new markets that help diversify your portfolio and mitigate your risk.
New opportunities in new markets are a wonderful way to help reinvigorate a stagnant investment career and put new life into your portfolio.
Talk to one of our advisors today to see what new opportunities are waiting for you!