The Three-Pillar Framework That Destroys Investor Fear

We explore how to build confidence to make real estate investment offers without fear by understanding the neuroscience behind offer anxiety and implementing a three-pillar system for success.

• Making offers activates the same fight-or-flight response in our brains as physical threats
• Experienced investors have rewired their brains through repeated exposure
• The three-pillar system begins with knowing your numbers cold
• Breaking properties into 39 different components for accurate cost estimation
• Investors using detailed checklists close 40% more deals than those using rough estimates
• "Lipstick properties" (simple cosmetic rehabs) give new investors a 78% higher success rate
• Cosmetic rehabs have a 12% margin of error versus 35% for full renovations
• The Safe Offer Cap formula removes emotion from the equation
• Investors using conservative formulas make 3.4 times more offers and close 2.7 times more deals
• Every offer reduces anxiety by about 15%
• Most investors report no fear response by their 8th or 9th offer
• Successful investors typically make 10-12 offers before landing their first deal
• Even experienced investors still feel nervous when signing contracts

Don't forget to follow us wherever you get your podcasts so you never miss a show. I'm grateful to be part of your journey. Now get out there and get cracking!

Want to learn how to flip your first house?

CLICK HERE to learn more about our upcoming boot camp, Flipper Camp.

Learn to build a house flipping or multifamily business: Clark St Academy

Chapters

• 0:00 Building Confidence Through Small Wins
• 0:43 Introducing Co-host Jess
• 1:14 The Neuroscience of Offer Fear
• 2:16 The Three-Pillar System Explained
• 3:53 Taking Action Despite Fear
• 6:06 Episode Closing

Transcript

Ed Mathews: 0:00

Data shows investors who begin with simple cosmetic rehabs have a 78% higher success rate in their first project and if you think about it, that makes a ton of sense Building confidence through smaller, quick wins.

Ed Mathews: 0:16

Ever sat in your car scrolling through Zillow and thought, man, if I just knew where to start I could flip one of these. Yeah, I've been there too. Most people who want to flip houses never even start, not because they're lazy, but because they don't have the blueprint. Well, that changes today. If you give me five minutes, I'll give you real world flipping strategies that actually work. No fluff, no theories, no gatekeeping, just real how-to information for you to apply today. Welcome back to Demo, to Dollars, your no BS flipping playbook. One tip at a time Before we dive in. I've got someone I want to introduce. That voice you're about to hear that's my new co-host, jess. She's been my friend for years and my partner on more projects than I can count. She knows this business inside and out and I'm fired up that she'll be joining us from time to time on the show. Welcome, jess.

Jess Carter: 1:09

Thanks, Ed. I'm excited to be here and share what I've learned right alongside you.

Ed Mathews: 1:14

All right, let's get into today's topic how to build confidence to make offers without fear. Making offers on real estate deals terrifies most new investors more than public speaking or skydiving. But here's the twist that fear has very little to do with money.

Jess Carter: 1:31

And you know what's fascinating about that? The physiological response is nearly identical to those other fear triggers. The brain actually can't tell the difference between submitting an offer on the property and facing a physical threat. Studies show it activates the exact same fight or flight response in our amygdala. So we're essentially dealing with primitive survival instincts when we're just trying to do a business transaction.

Ed Mathews: 1:55

Exactly right. And here's where it gets interesting. Research shows that experienced investors have literally rewired their brains through repeated exposure. Their amygdala response is measurably lower when making offers.

Jess Carter: 2:09

So what's the practical approach to rewiring our own brains and building that confidence?

Ed Mathews: 2:13

Well, it starts with something I call the three-pillar system. First, you need to know your numbers. Cold Studies show that investors who can estimate renovation costs within 5% accuracy are three times more likely to pull the trigger on deals.

Jess Carter: 2:27

I agree. You know it's fascinating Successful investors break properties into 25 or so components. We break ours down even further, into 39 different elements.

Ed Mathews: 2:38

Yep, everything from roofing at $4.50 per square foot to kitchen remodels averaging $12,000 for a basic package. And here's the key data point Investors who use detailed checklists close 40% more deals than those who rely on rough estimates. It's about removing all those little question marks that feed the fair response.

Jess Carter: 2:59

That reminds me of something interesting. When I see someone struggling with offer hesitation, it almost always is caused by decision fatigue.

Ed Mathews: 3:07

Exactly right. And that leads us to the second pillar, starting with what we call lipstick properties.

Jess Carter: 3:14

Right. Data shows investors who begin with simple cosmetic rehabs have a 78% higher success rate in their first project and if you think about it, that makes a ton of sense Building confidence through smaller, quick wins.

Ed Mathews: 3:29

The numbers back that up too. The average cosmetic rehab has a 12% margin of error on estimates, compared to 35% for full renovations, and it's just easier to get it right when you're dealing with predictable costs.

Jess Carter: 3:42

And that success rate compounds over time.

Ed Mathews: 3:45

Yep, absolutely. The data is crystal clear Investors who complete three successful cosmetic flips show an 89% reduction in offer anxiety when tackling larger projects.

Jess Carter: 3:56

So what's that crucial third pillar you mentioned?

Ed Mathews: 3:59

It's called the safe offer cap. It's a mathematical approach that removes emotion from the equation. You take the after repair value, subtract renovation costs, your fixed costs and your minimum profit, and that gives you your maximal offer price.

Ed Mathews: 4:13

And playing the game conservatively using that formula really helps overcome the psychological barriers, especially with your first few projects. You know it's remarkable Investors using a conservative formula, like the SOC, make 3.4 times more offers than those who go with their gut.

Ed Mathews: 4:30

And here's the kicker they actually close more deals too, about 2.7 times as many.

Jess Carter: 4:34

You know what's fascinating about all this? It's how the psychological and practical elements are so intertwined.

Ed Mathews: 4:41

Right on. That's the momentum effect. Every offer you make reduces anxiety by about 15%, according to our research. By your eighth or ninth offer, most investors report absolutely no fear response whatsoever.

Jess Carter: 4:55

Well, hopefully, that should be incredibly encouraging for anyone just starting out, knowing there's actually a light at the end of the tunnel. One thing I'd like to add to really drive it home for you out there Successful investors make 10 to 12 offers before ever landing their first deal. This is a numbers game. It's not about being fearless. It's about taking action despite the fear.

Ed Mathews: 5:18

Yep, even after all these years, my hand still shakes every time I sign a contract and it's supposed to. You're taking on a big responsibility.

Jess Carter: 5:27

Even the most experienced investors started out exactly where you are right now.

Ed Mathews: 5:33

You know, at the end of the day, confidence isn't something you wait for. It's something you build through consistent action. Every offer you make is literally rewiring your brain for success.

Jess Carter: 5:46

And that might be the most powerful takeaway of all that fear isn't something to overcome, but rather a signal that you're growing.

Ed Mathews: 5:53

Well said, Jess. I guarantee you 100% of successful investors felt the exact same fear at the start. The only difference they made the offer anyway. Well, that does it for today's episode. Nice working with you, Jess.

Jess Carter: 6:08

Yeah, that was fun. Thanks for listening, and don't forget to follow us so you don't miss an episode.

Ed Mathews: 6:14

Thanks for listening to Demo to Dollars. If today's episode helped you move one step closer to your first or next deal, do me a favor follow us wherever you get your podcasts so you never miss a show. I'm grateful to be part of your journey. Now get out there and get cracking Bye for now,