Four Common Fears That Stop You From Investing in Real Estate, And How to Overcome Them

You already have everything you need to become financially free within reach. 

So what is standing in your way? Financial freedom for doctors is possible with passive real estate, yet it’s fears that hold most back from taking action. If you’ve thought about investing in passive real estate but fears are keeping you from diving into real investments, you’re not alone. 

What is passive real estate investing? For those unfamiliar, it’s about earning income from properties without the day-to-day responsibilities of a landlord, all while having your time freed up for other passions and responsibilities. 

Passive real estate can be a powerful vehicle for building enduring wealth, but hesitations are normal. As doctors, we can’t approach our jobs with that same fear. We rely on data, extensive training, and a great sense to do the right thing when approaching our work. Sure, there might be a little fear, especially in critical moments, but it’s not debilitating. In other words, we break through our fears because we are well-informed in medicine. 

When it comes to passive real estate investing, you’ll find out that overcoming fears to generate life-changing income is also about being well-informed. What if you could overcome those fears keeping you from financial freedom? A tempting thought, right? Let’s diagnose and treat the four most common fears for those looking to invest in passive real estate. 

FEAR 1 – The Learning Curve

I remember when I first started listening to real estate podcasts and going to investor meetings. It was really intimidating. You may have had a similar experience, thinking real estate is too overwhelming to master. I get it. Between understanding markets to attracting qualified tenants, the learning curve can feel steep. 

Think of the years we put in to master medicine, both before and after we transitioned into our particular speciality. We can’t devote that kind of time to real estate. On top of that, as doctors, we’re trained to be risk averse and think about risk-benefit. Do no harm, after all. The potential harm and what-ifs of real estate that remain can stifle us.

The good news is this: Real estate is nowhere near as complex as medicine. The beauty is that the foundational principles are straightforward and consistent—meaning that you will be able to jump into the fray successfully without the need for immediate mastery. 

Get the basics down and then learn little-by-little as you go. With your educational and professional background, it won’t be a problem. And remember, every expert started from the basics. There are ample resources to guide you to the many investment opportunities, such as syndications or funds, that don’t require your extensive expertise. 

Want to start your investing journey with confidence? SUBSCRIBE AND TUNE IN TO OUR PODCAST: #178 Top 4 Fears Of Investing In Real Estate ft. Peter Kim, MD.

FEAR 2 – Time

Let’s face it: Doctors are busy professionals. The average physician works more than 50-hours a week. What little time remains is spent on rewarding experiences in our personal lives. When investment opportunities come around, your time scarcity might produce a thought like, “I don’t have time to find property, care for it, and play the landlord role.”

The truth is that investing in real estate is a complete spectrum—from active to passive. With passive real estate investing, you won’t be the one scouting properties or fixing toilets at 2:30 in the morning. With the right strategies and structures—like turnkey investments or hiring a property manager—you can reduce your active involvement considerably.

You can lessen your total time spent by setting up the investment the right way from the start. The benefits will be twofold: It will help you create additional income that, in turn, allows you to buy back your time—time you can use to learn about other investment opportunities, to spend time with family and friends, and to pursue your passions. 

The key is understanding what your time-saving investment opportunities are. 

At the end of the day, time should never be a fear that keeps you from investing.

FEAR 3 – Money

Here’s a fear I run into a lot: “Big investments require big money—money I don’t have enough of.” It’s actually a myth that you need to have tremendous amounts of money lying around to invest in real estate. 

While some methods do require substantial capital—such as buying an apartment building outright—there are many ways to find investments with substantial returns using what you have today. 

The very first real estate investment I made was for $5,000. It was a fix-and-flip debt investment deal. Within a year I had earned the investment back with interest. I then put that earned income into other passive investments. Soon, the initial $5,000 became $25,000 and eventually saw heights of $100,000 and climbing. 

With very little capital, you can dive into partnerships or even Real Estate Investment Trusts (REITs), both of which offer investment onramps without the need for bank-breaking amounts of capital. 

And if you are looking to free up more cash for smaller investments, there are many ways to achieve that through creative financing. I’ve talked about the many ways to find money for investments before, including how to leverage specific kinds of retirement accounts.  

The investment world is vast, and there’s likely a strategy that fits your financial situation. 

FEAR 4 – Current Market Concerns

Feeling like we don’t have a handle on market conditions can be concerning. Because most doctors aren’t experts in market analysis, we hold ourselves back by wondering, “Is this really a good time to invest in the real estate market?”

Putting your money at risk in any market can be scary. And we all want to follow Warren Buffet’s first and second rules of investing: 1) don’t lose money, and 2) remember rule number one. But here’s an important truth: Investment always carries a degree of uncertainty, and real estate is no exception. 

Every market has its highs and lows. Fluctuating markets, economic downturns, or even local property issues can make any potential investor pause. But, historically, markets tend to grow capital over time. Focusing too much on timing is where a lot of investors go wrong. 

Strong investing is about understanding and being prepared, not about waiting for the “perfect” moment. While timing can be a factor, a well-researched strategy focusing on long-term growth and cash flow can weather any storm.You’ll be investing through all parts of the cycle—during its up-and-down fluctuations—as it steadily climbs. 

Something else to keep in mind is the importance of expectations. For example, those invested in apartment buildings shouldn’t expect the same returns today that they got five years ago. They’ll likely be waiting a long time for that to happen, but they have other opportunities in real estate to make up for it. 

As you dip your toes in your first investments, you’ll learn how markets can fluctuate and use that information to make more informed decisions to navigate market cycles. 

TREATMENT PLAN – Overcome Fears By Being Well-Informed

This is the new era of passive real estate investing—an era where the benefits of property ownership can be enjoyed without fears holding people back. My hope is that physicians aren’t just medical experts but are also adept at creating diverse income streams to build enduring and life-changing wealth.

Find the right mentors, the right community, and the right educational resources along the way to stay well-informed. That is precisely where the Passive Real Estate Academy (PREA) comes in. It helps doctors confidently invest in passive real estate. Joining also connects you to a networking community of thousands—people who come together to share the right investment opportunities.

Tailored to address common investment fears, PREA is gearing up to launch again soon with revamped offerings that align with the evolving market landscape. PREA isn’t just about theory; it’s about actionable steps, mentorships, and real-life strategies.

With PREA, you’ll unlock doors to your passive real estate goals and watch those goals become a tangible reality. We only open the doors to our academy a few times a year, so get involved today. Visit our website at PREANOW.COM. So, for all the doctors and professionals out there: Your time is now. Dive in, inform yourself, overcome the fears holding you back, and tap into the income potential of passive real estate.

We’re not just medical experts; we’re people with a diverse set of goals and interests that can be unlocked with financial freedom. Here’s to breaking barriers and building bridges to your financial dreams!

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