3 Ways Competence Builds Confidence in Real Estate Investing

In real estate investing, confidence isn’t just a nice-to-have—it’s a necessity. Whether you’re pitching a deal, negotiating with sellers, or raising capital, confidence sets the tone for how others perceive you and how you approach challenges. But here’s the catch: true confidence doesn’t come from bluffing your way through situations. It’s rooted in competence—the mastery of skills, knowledge, and experience that equips you to navigate the complexities of the real estate world with ease.

As Malcolm Gladwell famously pointed out, it takes around 10,000 hours of focused practice to become an expert in any field. For someone working full-time, that’s roughly five years of dedicated effort. With part-time practice, it could take ten years to reach competency, but dabbling occasionally could leave you spinning your wheels for twenty years and still only scratching the surface. The takeaway? If you’re serious about becoming competent in real estate investing, commit fully. The time and effort you invest will pay dividends in your ability to make confident decisions and inspire trust in others.

Let’s explore three ways competence directly contributes to confidence in real estate investing—and how you can use this principle to expand your portfolio and attract investors.

1. Competence Reduces Fear in High-Stakes Decisions

Real estate investing is filled with high-stakes decisions: analyzing properties, negotiating deals, and managing risk. Fear of failure or making costly mistakes can shake anyone’s confidence. Competence, however, replaces fear with clarity.

• Why it Matters: When you’ve mastered skills like underwriting properties, evaluating market trends, or understanding financing structures, you approach decisions with assurance instead of hesitation.
• Real Estate Example: Imagine you’re analyzing a multifamily property. If you’ve built competence in cash flow analysis, you can confidently explain to investors why the deal works—without second-guessing your numbers.

Takeaway: Focus on developing core real estate skills, like deal analysis and market research. The better prepared you are, the less fear will control your decisions.

2. Competence Commands Investor Trust

Confidence alone doesn’t attract capital; competence is what convinces investors to trust you with their money. Investors want to know you’ve done your homework and can deliver results.

• Why it Matters: When you can clearly articulate the risks, returns, and strategy of a deal, investors see you as a professional who knows what they’re doing. This trust amplifies your confidence during pitches.
• Real Estate Example: During a pitch for a multifamily deal, showcasing your knowledge about the local market, tenant demand, and exit strategies gives investors confidence that their capital is in good hands.

Takeaway: Hone your ability to explain deals in plain terms. When you can confidently answer investor questions, you’ll naturally command trust and build lasting relationships.

3. Competence Fuels Momentum for Bigger Deals

Every successful deal reinforces your confidence and competence, creating momentum for larger opportunities. In real estate, competence grows with every property you analyze, every negotiation you conduct, and every deal you close.

• Why it Matters: As you achieve small wins, your confidence grows. That confidence inspires you to take on bigger deals, build stronger investor relationships, and scale your portfolio.
• Real Estate Example: Closing your first small multifamily property builds the skills—and confidence—you need to tackle larger complexes or even raise funds for syndications.

Takeaway: Celebrate small wins and view every deal as a stepping stone. The competence you build with each success fuels your ability to tackle larger, more complex projects.

Final Thoughts

In real estate investing, competence is the foundation of confidence. When you master the skills that matter—like deal analysis, market research, and investor communication—you reduce fear, inspire trust, and build momentum for success. Confidence isn’t about pretending to know everything; it’s about knowing you’re prepared to face challenges head-on.

Want to level up your competence and confidence? Download my Unlimited Investor Leads book to access my proven playbook for attracting investors and closing deals with confidence.

Start building your expertise today, and watch your confidence in real estate investing grow!

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The information contained herein is for general guidance on matters of interest only. This information contained herein is not intended to provide you with any advice on financial planning, investment, insurance, legal, accounting, tax or similar matters and should not be relied upon for such purposes. Marcin Drozdz, M1 Real Capital Inc are not financial, legal or tax advisers. You should assess whether you require such advisers and additional information and, where appropriate, seek independent professional advice. You understand this to be an expression of opinions and not professional advice. You are solely responsible for any actions you take with the content and hold Marcin Drozdz and M1 Real Capital Inc or any of it's affiliates harmless in any event or claim.