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Let’s Be Honest: You Won’t Become a Real Estate Investor (Here Are 8 Reasons Why…)

by Tom Sylvester on March 17, 2014 · 60 comments

  
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If you are not investing in real estate currently, I have some hard news for you to hear… you probably won’t ever become a real estate investor.

I said it; you won’t ever become a real estate investor.  Save your time and money.  Quit spending time on BiggerPockets reading blogs and listening to podcasts.  Quit reading the forums, quit buying real estate books and courses.  It will all be a waste of time and money, because you won’t take action.  Admit it to yourself, your friends and family were right, save yourself time and money and move on. Here is my reasoning..

1. You Don’t Know Your Why

One of the most important things to understand before you start any venture is understanding “Why.” Why do you want to be a real estate investor?  If your answer is “to make money,” you will fail.  Your “why” is the driving force and it has to be strong.  Real estate investing is difficult, very difficult.  It will try you physically, mentally, emotionally and financially.  You will lose some friends, make mistakes, lose money and probably end up in court at some point.  Your “why” has to be strong enough to get you through all of these challenges, otherwise you will break when faced with them.

2. You Have Not Talked To Your Significant Other

If you are in a relationship and have not talked to your significant other about real estate investing, you have a hard road ahead of you.  Real estate investing is not for the faint of heart and both you and your spouse need to agree and be committed to real estate investing.  Even if it is just “your” business, it will have a big impact on your life and finances as a couple.  Regardless of your investing strategy, you will have to invest time and money.  You may have to pick up a second job to save money, forgo that new car purchase or live in a duplex next to your tenants.  Communication is key in any relationship, especially when discussing real estate investing or entrepreneurship.

3. You Want to Get Rich Quick

If you have seen the late night infomercials with cars, houses and beautiful people and want that life, you can have it, just not tomorrow.  Unless you already have a lot of money, it will take time to make significant money from real estate.  You have to be in it for the long haul.  If done right, real estate can provide wealth and a lifestyle that few other investments can, but it takes time and sacrifice.  If you want to get rich quick, keep playing the lottery.

4. You Haven’t Planned Your Business

Real estate investing is a business, plain and simple.  Without spending time planning some items like your mission, business strategy and financials, you not only will not understand your targets and strategy.  You may also get caught in analysis paralysis or chasing the next new investment strategy, all of which can lead to a lot of work and little action.  Additionally, you most likely won’t create systems and structure to support your business operations, which will cause you to spend more time working in your business, rather than on your business.

Related: Marketing Your Real Estate Investing Business: 7 Steps for Perfect Planning

5. You Are Not Willing To Put in The Work

If I haven’t said it yet, real estate investing is difficult.  To be a real estate investor is to be an entrepreneur.  Entrepreneurs can spend many years or long hours and low to no pay to build a successful business.  This may mean giving up certain things that take your time so that you can spend more time working up on your real estate business.

6. You Don’t Have Skin in the Game

If you were to go to a bank for a mortgage, they will most likely only give you 80% of the cost of a house and want you to pay the oer 20% yourself.  Do you know why this is?  They want to get paid back and they don’t want to you to just walk away from the house.  By making you spend 20%, they make sure you are committed.  If you have not done something to make yourself committed to real estate investing, it is very easy not get started or give up when things get difficult.

7. You Have Not Burned The Boats

You’ve probably heard this saying before.  One of the best ways to make sure you are committed to something is to “burn the boats” or not give you a way to go back.  Many successful entrepreneurs attribute their success to getting laid off, not having a job and having to make sure that their business succeeded.  How can you make it so that you have to succeed in real estate investing?

8. You Are Waiting For The Perfect Time

There is no “perfect time” to start real estate investing.  If you are waiting for the perfect time, you will never get started.  There are hundreds of ways to make money in real estate, and there is a strategy that works in every location regardless of whether we are in a up or down cycle.  Most important than trying to time the market is picking the right strategy/location that make sense after running the numbers.

An Open Challenge… Prove Me Wrong

I foolishly fell into the “guru trap” and spent $15,000 on “training.”  This was 6 years ago.  I was not alone as 40 other people did the same thing, and several people spent double what I did.  I recently came across our class list and decided to try an experiment.  I reached out to the group to see who was still active in real estate since the training.  Here is the response:

  • 40 total people
  • Out of 40, only 3 people (including myself) are still investing in real estate

See why I am telling you that you won’t be a real estate investor?  40 people each spent $15,000+ on real estate training and 6 years later only 3 people are actually investing in real estate.

It’s the same trend with our local REIA.  Each month we have several new faces.  They hang around for 1 or 2 meetings and then disappear.  Or they hang around for a year and when I check in with them, they have yet to buy a house.

I hate to see this, so I want you to prove me wrong.  Be one of those 3 people.

Find your why, create your plan and take action!

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{ 60 comments… read them below or add one }

Matt S March 17, 2014 at 3:46 pm

I really like this article. A good ‘ole challenge is always good to see what people really want.

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Tom Sylvester March 17, 2014 at 6:53 pm

Yeah, I love challenges. Hopefully it will ignite a fire under some, but unfortunately most will just drift past it and fail to take action.

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Doug Merriott March 17, 2014 at 5:27 pm

Man, that was awesome Tom. Thanks a lot for saying that.

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Tom Sylvester March 17, 2014 at 6:53 pm

Thanks Doug! I appreciate the comment.

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Mehran Kamari March 17, 2014 at 5:35 pm

It’s hard to see how many people I welcome to the community on the New Member sub-forum that give a real pumped up introduction…. and then disappear less than a week later. It’s not easy… but very rewarding!

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Tom Sylvester March 17, 2014 at 6:56 pm

I can only imagine. I feel the same way when a potential investor reaches out and buys me coffee. We have some great discussion, then I follow-up and they have done nothing. The ones that do go off and start investing make it worth it though. I’m happy to report that my ratio of getting newbies to invest is much better than 3 out of 40, and I don’t charge $30,000 for training!

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Ben Howard May 29, 2014 at 8:25 am

I’m going to go out on a limb and disagree with the case of the disappearing new member. I realize many new members likely do post and disappear. However, as a new member myself as of last week, I can also see why it may be the case that new members look as if they disappear while they actually do not.

On the surface, my case may seem anecdotal, but the more I look at the forums, the less I believe this to be the case. As someone who is new to real estate investing, but has owned a tenant occupied property for five years, I am here to learn primarily about being a better landlord. I posted a new member Hello. I received about half canned responses, a few “welcome” messages, and maybe three responses that were actually beneficial. Most responses looked like members who were just trying to cheaply build their post count.

I contacted those few responders who offered something such as advice, contact info, etc.. In the meantime, I’m reading every blog every day, listening to all of the podcasts, and generally learning everything I can about landlording. I check the forums every day. But, the forums rarely contain anything useful. They contain people looking for partners, people saying the ROI is better in Florida. People asking to vet a deal. There are few forum posts about “Ideas for a new landlord” or “ideas for screening”. At best, there’s an admonition to check the existing blogs. That’s great, but this means the existing forum members are actively pushing new members away from the forums, even if unintentionally so.

It really wouldn’t matter what area I was trying to learn more about, the forums simply aren’t hospitable to learning. The blogs are. Unfortunately, whoever setup this website for some reason doesn’t connect blog post comments back to your account. So, if I post a response in a blog, it’s not reflected as part of my actual account at BiggerPockets, and I appear to otherwise be a now inactive member.

I suppose that ultimately, my point is that the forums are run in such a way as to promote saying hello and then only getting further involved when you’re actually about to make a purchase. The rest of the website doesn’t really connect to the forums in any way. It’s almost like two entirely different websites. It’s as if someone who did real estate investing for a living designed the site to be tailored to people who already do real estate investing for a living.

Rest assured, however, there are some members who actively read and actively participate even though it doesn’t appear to be the case.

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Margaret March 17, 2014 at 5:58 pm

Great Article! And so true. Yes, I have also taken many classes and seminars and as I made friends and networked, I discovered that so many people drop out after they find out how much work is involved. Sounds so great to make a killing in one deal (and these guru’s all show you how) but what they don’t show is behind the scenes and how long it takes to gain experience. To me, it’s like the overnight pop star success. What the public doesn’t know is how many years you practiced your instrument before you became really good and how many gigs you played for free to get experience. (Oh, can you tell I’m also a musician?)

Thanks, you just reminded me I’m almost finished with my business plan and I need to get on it!

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Tom Sylvester March 17, 2014 at 7:03 pm

Margaret – I always like the saying “Show me anyone who is successful, and I’ll show you someone who has overcome adversity” – Lou Holtz

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Michael March 17, 2014 at 6:37 pm

Great article Tom! I would like to point out that I’m one of those folks who showed up for a handful of REIA meetings and then quit going. Perhaps it was unfortunate timing, but I felt like I was surrounded by a bunch of amateurs listening to various sales pitches. Surely there are a variety of levels of expertise and involvement in different locals. Just wanting to point out not to discount the folks that show up for a bit then don’t ever come back. I may never go back to one of my local meetings here in KY and the most successful investor I know in my area (owns and manages 800+ MF units) is the same way – went to a handful and will probably never be at one again!

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Tom Sylvester March 17, 2014 at 7:05 pm

Michael – That is a valid point for the successful investor. To be honest, I went to more REIA meetings when I was new than I do now. I actually just started attending again sporadically, but I do find that some of the most successful investors attend rarely if ever.

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Michael Dorovich March 17, 2014 at 7:08 pm

This sounds like the truth. I took a training where participants paid $36k, and I called all 60 people from the bootcamp and followed up with them. A year or so later, 5 or 6 were doing deals, and several had gone bankrupt as a result of the training.

It is the 80/20 rule, or the 97/3 rule, it applies everywhere. You have to be in the top 3 percent.

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Tom Sylvester March 18, 2014 at 3:25 pm

It’s amazing how many people will throw a large chunk of money away (a good portion or all of a year’s salary for some) and do nothing with it.

I like the adjustment from the 80/20 rule. It truly is a much different ratio for real estate investors.

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Ben Leybovich March 17, 2014 at 7:53 pm

#s 1 and 7 are why most will fail Tom – tou-che…

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Tom Sylvester March 18, 2014 at 4:26 am

I expected you to say it’s because they bought a Waldo…

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Blake March 17, 2014 at 9:13 pm

Wise advice, particularly about being on the same page with your spouse. My wife has been involved with every deal I have made, and it helps to have a partner to kick ideas around with. She has kept me away from several bad ideas. She has even believed in the business enough to roll up her sleeves and grab a paintbrush or hammer at times!

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Tom Sylvester March 18, 2014 at 4:48 am

Blake – Thanks for the comment. We find that that is one of the most overlooked ones. I should know, I made the mistake as well. I spent all that money on training, on our credit card, without consulting her.

I then had to take a step back and we had a lot of discussions around the life we wanted and how to get there, which is what finally got her on board.

My wife has been my savior as well. I’m the “crazy entrepreneur” and she makes sure that I take a step back and really evaluate things. She also helps manage a lot of the tasks and systematize our processes. That’s great to hear that you wife not only supported investing, but got involved as well.

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Sara Cunningham March 18, 2014 at 2:50 am

Having the support of your partner is crucial. Two heads are better than one for starters. We also bought one of those crazy online courses and spent weeks listening to it and trying to make sense of it. To be honest it scared the heck out of me. They made it look so easy. My take away from it was if it looks too good to be true then it probably is. A lot of these so called courses come across as get rich quick schemes. Much better to follow your guidelines above and get on with it instead of fantasizing about living the Lifestyle of the Rich and Famous.

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Tom Sylvester March 18, 2014 at 4:51 am

Sara – Spot on! So many people get caught up in the hype (again, myself included) and spend a lot of money to learn how to easily do these deals and become rich. Your line sums it up – “if it looks too good to be true then it probably is”. The first thing I tell new investors is that real estate investing is very difficult, especially to start. Now as time goes on and you get systems in place it gets easier, but there are always challenges.

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Sharon Tzib March 18, 2014 at 9:43 am

My situation is a bit different, as I have started and stopped REI a couple of times in my life, always because of what I perceived as a “lack of money” problem. Fortunately, I have found BP and learned how to do away with that limited thinking, and now that I understand creative finance, private money, and living below your means in order to accelerate your investing capability, I am excited to be back in the game again. This time, I will not stop until I have achieved my ultimate goal!

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Tom Sylvester March 18, 2014 at 3:27 pm

Sharon – Thanks for sharing. Persistence truly is the key. What is your action plan to be able to “get back in the game again”?

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Sharon Tzib March 18, 2014 at 3:33 pm

It’s multi-pronged, Tom. I’ll be investing in buy and hold multis/apartments and using the cash flow to purchase more. I also have several private investors that want to invest with me. And I will be trying to not spend the pretty decent nest egg I have and instead try to use more of the creative finance methods I have learned to purchase. Lastly, I will be living significantly below my means in order to accelerate this plan.

When I reach my goal, I will travel the world (my why!!).

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Tom Sylvester March 18, 2014 at 4:33 pm

Awesome Sharon. What is your action plan to acquire the first deal?

Sharon Tzib March 18, 2014 at 4:59 pm

I’m moving from Belize to Houston. I have an entire Word doc with my five year plan outlined, Tom, since there will be a lot do do, and I want to hit the ground running. I’ll keep you posted…

Jeff Brown March 18, 2014 at 10:08 am

Hey Tom, good stuff. What you’ve noticed here is what I’ve seen my entire career. A whole lotta talk, and not much walk.

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Tom Sylvester March 18, 2014 at 3:28 pm

Thanks Jeff. I think if you talk to most active real estate investors, we have all experienced the same thing.

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Jorge Caicedo March 18, 2014 at 10:10 am

Tom, excellent and thought provoking article! Myself, I just started in January and already have leads on 5 vacant properties and am working on getting a system set in place..I’m also joining my local REIA this Thursday to let them know they have a new wholesaler on their hands although I plan on moving into rehabs as well since I found I could get approved for financing through a lender…My long term goal is to own a commercial multi-unit or 2 for cashflow and whatever I receive from my other investments..i.e..etf’s, stocks, etc…

I have to slightly disagree that getting into it for money is a wrong reason..That’s what the people I know do it for but of course it’d be silly to not learn of the potential pitfalls ahead of time…For me, it’s a way of having a comfy retirement as well as the fact that I like a challenge, even at 42…So count me as one of the guys who’ll prove you wrong

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Tom Sylvester March 18, 2014 at 3:37 pm

Jorge – Congrats on getting started. I sure do hope that you prove me wrong.

In relation to wholesaling, I highly recommend that you read this article – http://www.biggerpockets.com/renewsblog/2013/10/07/real-estate-investing-skip-wholesaling/

Far to many people try to start with wholesaling, which can work, but I find to be very difficult. I would also highly recommend J Scott’s books – http://get.biggerpockets.com/flippingbook/

They are by far the best and most comprehensive books on flipping and estimating rehab costs, both of which are critical to become a great wholesaler.

And in regards to the “getting into it for money is a wrong reason” comment, it’s not that it is wrong to want to make money. We all do, which is why we turn to real estate. But it is not your “Why” or driving factor. To find out what your driving factor is, ask yourself “Why” 5 times (no pun intended).

Why do I want to invest in real estate?
-To make money
Why?
-So I can be my own boss
Why?
-So I can create my own schedule
Why?
-So I don’t miss any of my daughter’s activities as she grows up.

Now that is a strong “Why”. You see, we all want to make more money, but making more money itself will not make us happy. More money allow us to do something else, whether it be travel or whatever. But we have to understand our intrinsic motivation and what drives us. It is that driving force that will keep you going through the numerous failures that you undoubtedly will have.

Make you own luck and prove me wrong.

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Billy Gilbert March 18, 2014 at 11:33 am

I’ve never paid for seminars or classes or anything like but I did take a leap and bought our first rental house a few years ago. I kinda feel like I’m at a crossroads with my next rental strictly because of the financing part. I’ve been to a lot of different website like this one and now feel like I’m lost as to finding that money because like you I don’t want to use my own for the downpayment. I know a few very successful investors but none of them offer advice or private funding even though they have around 100 properties a piece. This is why I haven’t bought my second property. Any suggestions????

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Tom Sylvester March 18, 2014 at 3:48 pm

Billy – Congrats on getting the first one under your belt. That is the most difficult one.

In terms of financing, there are a lot of options. My basic strategy is to use my own funds (from a HELOC & 401k loans) to purchase undervalues/run down properties for cash, renovate them and then refinance with a bank. When I refinance, I will my cash out so I no longer have my money in the deal and pay back my source of funds. I then rinse and repeat. Each of those properties then provides cashflow, mortgage paydown, appreciation and tax benefits.

There are many other options out there. You can partner on a deal where you find the deal and partner with someone who as money and split the deal. You can seek out private investors. These can be regular people that have money sitting somewhere and want to earn a higher rate of return (ex. HELOC, CDs, retirement accounts). If you have an IRA, you can convert it to a self directed IRA and purchase property in your IRA. You can have the owner of the property hold the mortgage. There are then a lot of more creative options out there, but the above are some of my favorite. A quick search through the blogs, forums and podcasts on this site will give you lots of information about financing.

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Frank Iglesias March 18, 2014 at 12:48 pm

Thanks for this! Such a good reminder!

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Tom Sylvester March 18, 2014 at 3:50 pm

No problem Frank. Are you actively investing?

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Trevor March 18, 2014 at 1:21 pm

Tom, What I see is a lot of people talking and making connections and buying and selling. But know one is willing to let anyone in on where they are getting their money from. “I.E. their lending secrets. Private lending.” I own 3 rentals, any suggestions to getting my forth without using any of my own money or trying to find seller financing?”

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Tom Sylvester March 18, 2014 at 3:54 pm

Tevor – Check out my response to Billy Gilbert a few comments up, it has a lot of good tips.

I personally do use my own money on many deals, but refinance and pull my money back after after completing our renovation. I am always on the look out for private lenders or seller financing. As far as private lenders, look around for people that you know. Just about anyone can be a private lender.

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Lisa Phillips March 18, 2014 at 2:07 pm

Good article! I am so happy the internet exists, its pretty much why and how I was able to learn so much about real estate investing. Now a days, there is so much information, the need for Guru’s isnt as high as it once was. I will continue to show people how to do investing as much as possible, as everyone should know how to obtain wealth, not just the chosen few :-)

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Tom Sylvester March 18, 2014 at 3:57 pm

Lisa – I could not agree more. I hope that the “guru” need is dying and many people are wising up. At a minimum, doing a quick Google search before spending all of that money. I have had numerous people contact me and thank me for saving them tens of thousands of dollars by find a blog I posted about guru classes. Now maybe those people never up investing, but at least they did not waste all of that money.

All of the information is out there, so people cannot use that as an excuse. But ultimately they need to take action.

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Jorge Caicedo March 18, 2014 at 4:35 pm

Tom, thanks for the reply…checking that material out now…My “Why” would be to be able to travel more and pursue my musical interests more

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Tom Sylvester March 21, 2014 at 4:23 am

Great Jorge. Is that strong enough to get you through the tough times? If not, dig deeper and be specific. It is so critical that this Why is so strong that it can get you through those failures and rough patches. Then make sure you pair this Why up with your goal planning and measuring.

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Sharon Vornholt March 19, 2014 at 6:56 am

Tom -

So many people are just “full of excuses” when it comes to why they didn’t make it in real estate investing or why it won’t work for them. I think most of them just aren’t willing to do the work so they quit. Unfortunately there are still a bunch of gurus out there convincing folks that anyone can do this business with no money and very little work. There aren’t any businesses like that that I know of.

Great post.
Sharon

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Tom Sylvester March 21, 2014 at 4:27 am

I agree Sharon. Many of the people that fail/never got started probably should not ever have been looking at real estate investing to begin with. They most likely either heard a guru or knew a friend of a friend who make tons of money in real estate and somehow got the idea that it was easy and they could do it as well. That is the wrong mindset to come in with.

If on the other-hand people were attracted to real estate because they have the natural inclination to be an entrepreneur and understand they can put in work now to benefit later, then they are much more likely to succeed.

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Tom Waddell March 19, 2014 at 2:54 pm

Great article Tom. I’m a new investor with zero deals under my belt, so the onus is on me to prove you wrong. When I first got on to Bigger Pockets, I didn’t have the cash for a down payment on my first property. I figured I would spend my time educating myself while I saved up. However, just when I was getting really frustrated at the idea of how long it would take to save the down payment, I came across some blog posts on here about self-directed IRAs, which I knew nothing about. From there, I learned about solo-401Ks which are even better. And it turns out that I meet the qualifications for a solo-401K, so I just began the process of setting up a plan so I can use the funds from a previous employer towards real estate. I plan to start looking for my first property soon. (So maybe this is a reminder to other new investors to keep at it, since you never know when a breakthrough is right around the corner.)

In the meantime, I’ve been building an impressive Google Drive library of creative financing ideas, goals and tasks to achieve them, lists of prospective team members in my target market, and more. As a matter of fact, I just placed your answer to Billy Gilbert in my document that lists creative financing ideas so that I’ll be sure to remember those awesome tips in the future.

Does any of this mean you will continue to see me poking around this site in the future as a bonafide real estate investor. Nope. But then, I like to prove people wrong, so thank you for the challenge.

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Tom Sylvester March 21, 2014 at 4:30 am

This is a great quote ” keep at it, since you never know when a breakthrough is right around the corner”.

It’s great that you found some creative options. I know many people that are using self directed IRAs. The one word of caution it to make sure you fully understand the laws and regulations around using them so you don’t get in trouble.

I look forward to seeing you prove me wrong. Make your own luck.

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Cody March 20, 2014 at 9:18 am

Love it. This is one of the reasons when I list on loopnet, I ask in my listing to let me about their history when they contact me for questions. If they’re first timers (or just hit the ‘request more info’ w/o putting an actual question), I don’t bother to reply. Most of the time if I call and talk to them, I end up being a free class on ‘how to invest in real estate’ for someone I know will never buy anything.

Now to be fair, everyone has to have their first deal. I’ve just done enough transactions where if someone hasn’t bought something in the past, I’m pretty sure they’re not going to be the one to buy my deal.

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Tom Sylvester March 21, 2014 at 4:34 am

Cody – Valid point. I believe that if someone hasn’t done a deal yet, then they need to do something to show people they will potentially be working with that they are serious and hopefully already put in some work. Running a property through some analysis, having a targeted business plan, setting up financing, shadowing another investors and actually speaking, joint venturing and knowing the lingo are all great things that a new investor can do to improve other’s confidence in them.

I look at it the same way when we get incomplete rental applications back. If you can’t even fill out the entire application, you are probably not the tenant that I was to rent to.

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Steve March 20, 2014 at 11:55 am

So let’s be honest… A newbie’s mindset is once they finally do that one deal, they are on there way to financial freedom… Let’s be honest… How many do that one deal, and never do another… Let’s be honest… How many become a total success, doing deals all the time, then one day make a fatal flaw that costs them there business… Let’s be honest… How many successful investors do you know in your area that one day just disappeared… Got out tired of it all, and got out of the business… Let’s be honest!

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Tom Waddell March 20, 2014 at 1:06 pm

@Steve, I can’t tell whether you’re attacking just new investors or everyone in general. Every investor from new to seasoned pro would fit into your comments. I don’t understand what you’re trying to say here…

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Tom Sylvester March 21, 2014 at 4:36 am

Thanks for the titles for my next 5 blog posts. :O)

I’m with Tom, I’m not sure what point you were trying to make.

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Thos March 20, 2014 at 3:36 pm

I used to sell scavenged testbooks on Half.com and other stuff on Ebay, so I already had the entrepreneur bug, but I wanted to add more zeros to my income. So I spent a $200 on a Subject To course (from another website) and a year reading other websites (no BP then), learning, analyzing, obsessing. Looked at a few deals, nothing resonated. Then, when my gf was in Europe for 10 days, I bought my first 3 properties in a week. That was 8 years ago. Didn’t go at breakneck speed, and though I now have over 60 properties in five states, bought every way imaginable, from tax sales and Realtor buys to no-down SubTo and 0% interest contracts, I still manage everything myself, and it’s not bad. I never looked back, and it’s never occurred to me to get a 9-5 job. I’m worth way more than that.

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Tom Sylvester March 21, 2014 at 4:38 am

Thos – Great story and thanks for sharing. That a great example of how sticking with it and waiting for the right deal pays off. They key is to have things setup and actually taking action when that deal comes.

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Nick_P March 21, 2014 at 8:46 am

This business is no different than any other business, if you want to build a great business and become wealthy it takes a lot of time and energy!
When I started my career I took a major pay cut, bartending to Prop & Cas. Insurance. It took two years and a ton of kicks to the teeth the get back to where I was two years ago income wise. I stayed the course because I knew what I wanted.
I see my soon to start real estate business the same way. There is a plan, a timeline, and an understanding that something will go wrong as well.
There is quick money but wouldn’t you rather have a slow grown wealth that lasts beyond your lifetime?

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Tom Sylvester March 23, 2014 at 3:34 pm

Nick – You are absolutely right. Treating it like a business and not a get rich quick scheme means hard work, which is what pushes most people away. The hard work and dedication come first, anyone who has that will be successful in most things they put their time and efforts towards.

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Ryan March 21, 2014 at 10:01 am

Seems like there is this idea that is perpetuated by those who have classes or other services to sell and television shows that there is some kind of easy way or magic bullet to making money in real estate investing. When I got started, I thought I must be missing something that everyone else knew. It takes a lot of effort to find, buy and manage real estate. We have a pretty good system now but only because we spent a ton of time at the beginning. I also fell into the analysis paralysis trap early on. If you keep waiting for the “perfect” deal, you will never get started. In my opinion, the amount you learn from just doing one investment is far more than you can learn from a course, podcast, website, book, etc.

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Tom Sylvester March 23, 2014 at 3:36 pm

Ryan – Thanks for the comment (and I agree)! I love this quote from your post ” In my opinion, the amount you learn from just doing one investment is far more than you can learn from a course, podcast, website, book, etc.”. I agree with many others that say take some time to learn, but then dive in with your first deal. If you lose money, it is the cost of your education and in return you will learn a ton from actual hands on experience.

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Abel Vazquez March 21, 2014 at 12:37 pm

This a great article! Thank you Tom.
I had just ask a question on the forum. You read my mind. It is time to burn the boats pull the trigger and take ACTION!

Abel

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Tom Sylvester March 23, 2014 at 3:37 pm

Abel – Awesome! Thanks for sharing and make your own luck.

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Cody RyanW March 23, 2014 at 4:17 pm

Great article, Tom! Thanks for including the link to your $15,000 Training review. Great read as well. I went to the Free night seminar with a friend awhile ago. I enjoyed the information, but they were just talking about what I am currently doing, lol. I was curious how the future seminars were. I agree with you now, if someone has $15,000 to spend learning about real estate…use that $15,000 and actually get involved in a deal – private money rehab loan? owner financed down payment? Pool together with others? Best way to learn something is to do it!

Good to see you were able to keep the motivation to continue! And share your experiences!

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Tom Sylvester April 14, 2014 at 5:07 pm

Cody – Thanks for sharing your experience. It’s all about getting past the failures. One of the quotes in my office is “Keep Moving Forward”.

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Jonathan March 28, 2014 at 11:47 pm

This article is so true. I also started real estate investing from the ground up just about 7 yrs ago. Lost a lot at the beginning but learned much more. Also luck and good timing. I own and manage more than 1,000 apartments homes now and was involved to an extent with turning around more 2,000 units. I enjoy a complete financial freedom at this point ….i will never look back.

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Mark Ferguson March 30, 2014 at 9:03 pm

Great article. I would add people who don’t save money. It might fit in with the skin in the game. If you any save any money then the chances of you being an investor is very slim. To be successful in life you have to save as well.

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Frank April 21, 2014 at 10:53 pm

Nice Article Tom…Getting read to start investing myself. I’m in the process of purchasing my first rental. I still have my doubts as to whether or not I’m going about it the right way or not but I need to roll up my sleeves and start trying at least.

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