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Posted over 12 years ago

10 Things That Really Grind My Gears

I have only been in this business for about a year, but I have come up with a list of things that irritate me about real estate investing and business in general.  The positives have far outweighed the negatives, but here is what really grinds my gears!

#1: Scam Artists - Real Estate has become a forum for unethical and dishonest individuals to take advantage of vulnerable people.  This comes in the form of "gurus" (I know there are probably some good ones out there), fund managers, and people who just rip other people off.  Unfortunately, these individuals soil the reputation of real estate investors as a whole.

 #2: Unreliable people - This is more of a general rant than real estate specific, but I have heard about and had personal experience with many unreliable people.  Why people cannot show up on time to work or a showing or return a simple phone call is beyond me.  I use these as ways to separate my go people to from the one time use.

 #3:  It is worth how much? - So many times I have seen people advertising a deal on a property by coming up with the after repair value to entice investors...there is nothing wrong with this of course, except for the fact that the ARV they spout is often not anything close to the reality of the situation. 

#4: The blind leading the blind - Real estate is a tough business to break into and takes a lot of courage to do.  Often times people sit on the sidelines and allow fear to consume them.  To combat the fear, some people look for others to setup a partnership.  What I see far too often is two inexperienced, uneducated people forming a partnership destined to fail.  While I believe in action, I also like to see people succeed.

 #5: Experts - A lot of people claim to be experts in real estate investing, and many are experts. However, it is not rare to see or hear someone touting their great returns yet they are unable to understand the very basic concepts on investing.  My guess is some of them are frauds and others may have experienced a string of good luck. 

#6: Business Credit - The D&B system is unbelievable to me!

 #7: Here today, gone tomorrow - People come and go in the real estate business all the time.  One minute someone is dedicated to real estate investing, spending every waking minute trying to find new deals...the next they are nowhere to be found. 

#8: Highest and best...seriously? - I cannot count the number of times we have made offers on properties only to have the real estate agent tell us they have multiple offers, to give our highest and best.  How can it be possible that properties that have been sitting stagnant for months suddenly get action when we decide to make offers?  I hope nothing dishonest is going on here, but my instincts tell me otherwise.

#9: Wasted time – Too many people spend countless hours laboring over business cards, websites, Facebook pages and other marketing avenues, yet they are doing nothing to actually invest in properties.  I am a firm believer that marketing plays a role in business, but you need to have a business first.

#10: Rude people - There will always be people who are not nice to others, and sometimes people are in a bad mood, but some people are simply rude.  I always try to treat others with respect, as your reputation will follow you no matter where you go or what you do.

Everyone has probably been a part of at least one of these at least one time...I know I have, as no one is perfect.  Let me know what you think about my list and please share some of the things that irritate you as a real estate investor.

James Vermillion

www.kandvinvesting.com


Comments (9)

  1. Don's thread brought up another one...contractors who "forget" certain things they agreed to do. This is why a scope of work agreement is important. Sometimes they just need a friendly memory refresher.


  2. Dennis, I am not sure where I said that paying for education is bad, in fact I believe education is the most important aspect of real estate investing. I was referring to those people who purposefully take advantage of vulnerable people. You are correct, time is very valuable, and charging for your time is to be expected in most cases (not much is free in this world). Perhaps I misworded something that made you think I do not think it "pays to hire people to teach you". I would argue however, that most people end up paying too much for things they can find out for free, but to each his own. I obtained a solid foundation by researching, reading, phone calls, and achieving my salesperson licence, all for about $700. That worked great for me, because the money I saved bought my first 3 properties. What worked for me will not always work for everyone though, and I very aware of that.


  3. Yeah James well here's the other perspective on a couple of points in your rant. I charge for my time. A lot. And I know other investors do too, even if we're not "gurus" as you describe. Because time is the most valuable resource we have. And newbies tend not to realize it, or if they do, not to care. It didn't start out that way though. But let me run you though a few of the things I've been asked to do by newbies over the last couple of years: 1. Partner up where I find the property, I bring the money, I do the work, then we "split" the profit 50-50. Newbies call this "sweat equity". I've had two of these "offers" already this month on apartment buildings no less. 2. Partner up where I find the property, they bring the money, I do all the work, and they keep all the profit. 3. Shadow me / Ride Along / "Help" with next deal. They expect my scripts, my spreadsheets, and all the resources I use day in and day out. And I've never had one person actually add any value at all while they were supposed to be "helping". 4. Sit down for a "pick my brain" session, which turns into a three hour session at starbucks where I'm expected to deliver 100% of what I know, and then provide unlimited email follow up for any and all questions that come out of it. 5. "Meet for lunch" - and this is my favorite - because it again turns into a 3 hour marathon seminar, and then the newbie expects me to pay because I'm the "expert". The fact is, it DOES pay to hire people to teach you. The mistakes you avoid and the time you save pay for the training several times over. I spent several thousand dollars on live seminars and home study courses when I was just starting out. Then when I decided to jump into apartment buildings I spent another $16k and change learning that part of the business. I saved far more than that in mistakes I didn't make.


  4. Thanks Joseph and Randy. Maybe my next post will be ten things I love about real estate because there are a ton of things, and honestly, most of the issues are not real estate specific, but things you come across in any business.


  5. Right on James, I feel the same. I've been doing Real Estate on and off for the past 15 years and ran into my fair share of people. Just keep up the good work and stay motivated. I'll be doing the same as I'm going back into real estate hard core this time. This time around, I'm going to be financially free with mentors, support sites like these, and a strong will to do it for my wife and kids.


  6. Great article James. I am pretty new to this myself and am coming across some of the same frustrations.


  7. Bryan, I agree with you there, and time is money!


  8. Nice list James. Time wasters are another big one. I have spent FAR too much time chasing leads in my real estate journey. Over time you learn how to screen this mess out quickly though.


  9. Very good James! Let me wear my real estate agent hat first: I have met so many agents that got into the business because they like to show houses and they're a people person. Its a sales job! Period. Now, with my investor hat on: glossy websites, signs, etc do nothing unless you get out there and learn the business!! and rude people.....well, lets just say we know where they belong!