Analysis paralysis

There's a few ways to think about it.

Firstly, all that knowledge is worthless if you don't act on it.

Secondly, if you've determined that property investing is right for you and you believe that you'll generate wealth from it over time, then there's an opportunity cost involved when you don't do anything.

Cheers

Jamie

Sometimes people are so deadset on finding "the best deal" available that they cannot commit to any deal for fear that a better one will come along tomorrow.  All the while property values go up and opportunities are missed.

Spot on – that's the main cause of it.

It's impossible to find the "best" IP or the best PPOR – there are always going to be some boxes left un-ticked.

Cheers

Jamie 

Hi Shell,

Set yourself a timeframe and stick to it.

An old saying from business school.

The large goal confuses, the small goal excites.

In other words .. the large goal seems so huge that you hesitate at its ability to happen .. stumping yourself in the process.

The small goal .. tiddlywinks ! Can be done easily .. so it gets done. And you feel good for having achieved something.

So instead of dreaming a million dollars in 3 years and not doing anything towards it effectively .. break that down into bite size chunks and close-to-achievable parameters. Stuff you can deal with easily. And because you reach your little goals, your big goals become that much easier to accelerate towards.

My first investment .. i actually wrote down my acceptable parameters FIRST. And then i went around to find a property that was close to or matched the criteria. I was lucky .. i found 4 possible options .. and then took one of them. But I created the goal first .. before the outcome.

A latter goal was to find six reasonably placed development sites or crap houses. Again .. the goal first .. property second. And yet again .. i got more options than I actually needed. I went halvies with a developer mate to get another 3 sites I really couldnt afford. And because of the timing .. the land doubled and we actually managed to just sell instead of doing anything.

The outcome is unpredictable. The reasoning for the purchase must be secure .. and the foundations for the investment must be there. Anything else .. is based on your ability and knowledge base to achieve that best possible outcome. And you work with the easiest outcome that provides the best return.

AP is a mapping problem. No map!!

The term doesn't define the problem because paralysis isn't the issue rather a continuing effort to either analyse or a fear of acting because you have no template that tells you when you have completed the analysis.

People get stuck with AP because they have a haphazard ad hoc approach to problem solving. The solution is to develop a methodology that suites your goals/objectives.

• Define the goal (5 IP's in 10 yrs)
• break the goal down into bite sized chunks (1 IP/2 yrs)
• develop a measurable set of criteria (region, demographic, value range, property type, etc)
• develop a financial model (pos/neg gearing, debt/equity ratio, P/E ratio etc)

If you look at successful experienced investors they are always highly organised and structured in their approach. They have a strategy, a plan to accomplish the strategy and a set of rules to operate by. 

The wannabe who suffers from AP lacks at least one of these if not all of these attributes.

Great suggestion there from Feckle and all the other usual excellent minds!

I have a couple of big goals, then I start breaking them right down. Set a timeframe, even if it seems slightly unachievable, you'll make it happen if you want it badly enough.

Stick the goals to the fridge, or somewhere else highly visible. I have to explain to my kids what stuff means that I have stuck to the fridge, it's a really good reminder!

And take every day as it comes, pick one thing, tackle it, pick another tackle it etc etc.

The last thing I do is celebrate when I have a win, doesn't have to be big, then you get used to feeling the accomplishment.

If that all fails, I have a good whinge to get it out of my system, then I move on.

The goal setting is really important, it stops a lot of the fussing around with 'will I, won't I?" because you start to 'know' what you need to do, and you can get on with it.

Keep going Michelle, one foot in front of the other, you can win it!

Cheers

D

You  need to think hard and decide for yourself what are your causes of your analysis paralysis. Are you afraid to fail? Are you afraid to take actions?Do you think too big instead of taking small steps each time? Think about it and also read the article I have included. I have found great tips there.