Ever Felt Like You’ve Been Struck By Investing Information Overload?
Oh boy – feeling paralysed with investing information overload happens to the best of us and it’s even worse for those who are new to the idea of property investing.
Information overload happens when you seek to learn about something you want to be more knowledgeable about. You start to seek out information and then…. all of a sudden you have loads of websites you’re reading, every person you speak to has a different opinion on the topic and an inbox full of emails all containing more information.
Now, instead of being eager to proceed with the idea of buying an investment property – you are struck with ‘analysis paralysis’ and can’t seem to take a step forward.
This feeling of overwhelm doesn’t just happen with buying investment properties.
Although I have, and still do sometimes experience the ‘analysis paralysis’, the feeling of information overload was never as great as when I was first learning internet marketing. Boy – that was a time where I had so much information coming at me at once I felt completely overwhelmed.
One of the reasons this investing information overload can happen is because as you gain knowledge on the subject of property investing you soon realize that there is not one size to fit all. No one single investing strategy is right for everyone.
It can become very frustrating to not get a straight answer for all your questions. And as you seek to gather answers to your questions, the amount of knowledge you are exposed to increases more and more.
I have seen analysis paralysis stop many would-be investors from buying fantastic opportunities because they have over-analysed the deal and then talked themselves out of it.
A great example of this is a member recently who was buying a $215,000 property in Queensland. He had done all his due diligence on the property and had all his figures together. Then started to doubt his decision and get information overload after he heard stories in the media and got concerned with information on the percentage of investor loans versus home buyer loans across Australia. Then he bought some magazines and saw different information again. Every which way he turned was a different angle or story and he began to over analyse his figures. Luckily we could coach him through this time of uncertainty so he could move forward and a have a profitable property portfolio.
How Information Overload Can Strangle Your Property Investing Plans
With this information overload hanging like a big cloud overhead, most people back out of buying an investment property because they lack trust in their own judgement. They may have great ideas of what they want; gathered great information and yet still do nothing. As I’ve mentioned before, time in the property market works in your favour. These people who sit and do nothing are the type who continually look back in hindsight complaining about missed opportunities as they see the price of real estate going up and up over time.
We have worked with many clients who are like this. Hesitant, nervous, anxious and confused with all the information they have been receiving. It gives us the greatest buzz to get these members over this hurdle. And that is all it is – just a hurdle. And once they’ve jumped over that it’s great to have them get to the point where they feel confident in their buying decisions.
It’s easy for them to become unstoppable when they have mastered the art of investing with their head and not their heart.
Tips To Overcome Investing Information Overload
1. If you start of have this feeling of investing information overload, it’s important to have a mentor or someone who is an active property investor themselves. They can help you overcome your analysis paralysis because they will completely understand having the same feelings. You need the support of someone who takes the time to go through information as often and as slowly as you need to feel comfortable. The last thing you want are pushy salesmen or real estate agents who need to meet monthly sales figures.
Having a mentor who will guide you without doing it for you will help to gain confidence and understanding.
2. Be clear on the strategy you want to focus at the moment for your property investing. It could be positive cashflow, negative gearing, property development, renovation, buy and hold or a combination. Once you know your strategy, then seek out information only relative to that topic and let the rest go for now. It will all be there when and if you need it. If you’re not sure on the right strategy for you this is a good place to start.
3. Write down or verbalize what is concerning you. Then look for a solution to each point you have listed. Draw a line down the middle of a piece of paper and head one side “Pros” and one side “Cons”. List down all the advantages or benefits to moving forward under the ‘pros’ side. Then list down the worst case scenarios or disadvantages on the other.
That really puts things in perspective, right?
The act of writing down your worst fears can help you look at them from different angles. It allows you to analyze them for validity, and come up with potential solutions.
I find this to be an extremely helpful exercise when I feel “stuck” or have some hit of fear or anxiety associated too much information with a buying decision or project. Even better is to turn to a trusted source – a mentor or community – and ask for feedback. Sometimes a fresh perspective, or a different set of eyes can make a world of difference!
I hope this helps you push through and get past some of the things that have been holding you back, or maybe just slowing you down a bit. You’re not alone. I’ve been through all of this myself at one time or another – and sometimes even still.
Fear associated with investing information overload is often the biggest obstacle and knowledge and action are usually the solution.
If you feel overwhelmed with information and worry about making a mistake it may be because you just need to talk things through. Reach out and ask questions from trusted sources if you feel you feel something is missing. Then take action to achieve your desired result.