How To Overcome Analysis Paralysis

by | Jul 17, 2018 | blog

How To Overcome Analysis Paralysis


As a Note Investor, many of us share a common trait when we begin our note investing career. We over analyze every aspect of the business before we acquire our first note. We call this “Analysis Paralysis”.

From my personal experience, it took me six months before I bought my first note. I cannot tell you how many Scott Carson videos I watched online; the number of articles I read from other well-known investors; and the hours I spent scouring Bigger Pockets trying to make sure I was not missing something. This was all in addition to taking a virtual note buying workshop and a four-day online event with 30+ speakers in the industry.

One of the challenges I had was the educational content was extremely valuable and I wanted to continue to learn, but there comes a time when you have reached that pinnacle where you need to transform from a learner to a doer. How does one accomplish this? Here are my 3 tips for overcoming Analysis Paralysis:

1. Keep it Simple – Do not try to overeducate and over think things. Create a plan and a due diligence checklist and follow it.

2. Do not over-educate – You do not need to know advanced techniques like selling partials, hypothecating notes and knowing every state law that exists where you are not going to invest. This business is about learning through experience.

3. Find a mentor – I believe this is extremely important. You will want to network with others in the note industry and find someone who would be willing to provide assistance. They will not hold your hand but many investors will spend 15 minutes on the phone with you to discuss an asset prior to placing a bid to make sure you considered all exit strategies.

If you are still uncomfortable and cannot pull the trigger then you may want to look into a joint venture with a more experienced Note Investor until you are comfortable to acquire a note on your own.

While I am an avid believer that it takes time to get properly educated and your education should come from an experienced investor, looking back the most truthful statement mentioned at a conference I attended was:

“Investing in notes is like golfing. You can watch 1,000 hours of video on how to hit a golf ball, but until you step up to the tee and swing the driver, it is a completely different feeling and you do not truly learn until you play the game.

— Experienced Note Investor

The same logic can be applied to note investing. Let me know your thoughts and other advice you would like to share for those currently experiencing analysis paralysis.