Leslie Anne Morris, Founder & CEO Invest in the Smoky Mountains.
It may be shocking to you to learn that only about 32% of real estate investors are women according to Zippia. Real estate investing is a popular choice for building wealth, with 23% of Americans saying it is the best way to build wealth. And back in his day, Andrew Carnegie is believed to have said that “90% of all millionaires become so through owning real estate.”
So why are more women not investing in real estate when it is a primary wealth driver for so many individuals?
The Barriers
One significant reason is that women are prone to imposter syndrome. Imposter syndrome is a mindset of unfounded feelings of self-doubt and incompetence. There may be a conflict between a woman’s own self-perception and the way others perceive her. Many women tend to write off their successes, especially the early ones, and assume that they were only successful based on timing and good luck. They truly believe that it was likely a fluke and that success won’t come again.
There is also often a gender bias in fields where men have previously dominated. This can close off potential future women investors since they may think it’s a “man’s world.” Many times, women may also see only men having success. Without seeing other women—like themselves—succeeding, it may discourage them from attempting to begin investing in real estate in the first place.
Both imposter syndrome and gender bias play a role in the lack of women real estate investors, particularly when they are led to believe that they don’t belong. So, how do we change this now that we know where some of the primary issues lie?
Breaking Down Barriers
I think that understanding imposter syndrome and how to fix it is the first step we must take to address this issue. Women often try to take everything on themselves and go it alone. This is the first mistake; they should not try to do everything themselves. This can cause women to work harder, ultimately causing burnout, when they could instead build a team or network that can rally around and support them in their endeavors.
Next, I suggest women look at everything they’ve accomplished. Rely on the facts and not distorted thoughts, which may be clouding judgment. Many other women have invested in real estate before you—you do not have to recreate the wheel. Lean on other women who are already investing to round out your network or team—lean on the “who” and don’t focus solely on the “how.”
With gender bias eliminating some women from the investing field, we also need men to help take a stand. How can men support women in this endeavor? Being part of the change and not the problem is the main path. Look to include women who show eagerness to learn, and focus on ways to lift women up around you. When knowledge is shared and others are lifted up, we all win—no matter the gender or level of investor.
For the women who want to start investing in real estate, I recommend joining a group or mastermind of women who seek to grow and do like-minded things; join a real estate meetup group in your area or online forums where you can research and learn. Groups such as the Real Estate InvestHER, Women’s Real Estate Network or your local women’s investing chapter are great ideas, but also look to attend different networking and informational sessions not necessarily targeted toward women. (Disclosure: I am involved with Real Estate InvestHER.)
The idea isn’t to segregate yourself, although you may be more comfortable around others who share a similar background to you. Growth can come out of being around investors who aren’t like you and have different ideals and levels of investing background.
Who knows? You may be the one to come up with the next big idea in the industry and teach everyone else something new that only you can bring to the table. Women do have a seat at the table—we just need to pull up a chair or find a new table. Don’t let fear stop you; out of fear comes growth. When you’re a little bit scared about new possibilities, you’ll know you’re on the right path.
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