How To Navigate Through the Advice of Other Real Estate Investors

18

Connecting with other real estate investors is an integral part of this business.

You can’t and shouldn’t avoid forming relationships with other investors. Not only can it help to have others around who understands your same investment challenges and the weight of your victories, but you never know when they may be able to share leads and opportunities with you — or give you some solid advice.

In real estate investment, however, you shouldn’t blindly accept advice, even from a seasoned veteran. Knowing how and when to take advice is worth learning early on in your real estate investing career.

Dealing with Advice from Other Real Estate Investors

Advice from other investors can be invaluable if you feel at a loss or stuck in a given situation.

Should I buy that property? How should I deal with this problem? How can I fill that vacancy? Before you take and act on advice from other investors, there are a few considerations to keep in mind.

Related: Calling All Real Estate Newbies: 8 Reasons You Should Not Take my Investing Advice!

Every Situation is Different

Your experience with investments is not the same as those of other people.

You likely operate in different cities, areas and neighborhoods than another investor does. One property in one part of town could be a no-brainer, while the same property in another neighborhood could be a complete flop.

If one investor was wildly successful with his or her strategy, it doesn’t mean you should try to replicate it exactly. What works in one place may not work in another.

While advice for your situation could be good, it’s important to have all the hard facts regarding the investment property and the place it’s in. Maybe advice from another investor will hold up, maybe it needs tweaking and maybe you should save it for another time.

You Budget is Different

Keep in mind that, depending on the differences in your budget, risk tolerance between real estate investors is going to make for varied perspectives.

Related: How to Fund and Finance Your Real Estate Deals — Without Needing Tranquilizers!

An investor with deeper pockets might encourage you to take a risk that you really can’t handle — not on purpose, but because you have different experiences. One of you may have more aggressive goals in mind, too, so be careful not to try too hard to invest like another investor.

Even if it Doesn’t Help, be Grateful

You won’t take every piece of advice that comes your way.

No matter what, always accept the wisdom from another investor graciously — thank the person and communicate how valuable it was to hear an informed perspective. Mention that you’ll take it into consideration, but don’t necessarily say you’ll do it. Showing that you appreciate someone’s input, whether or not it solves your problem, will help maintain a good relationship.

Your Investments are Your Choice

Ultimately, the decision is yours. All the advice in the world won’t solve your problems.

This is your investment property, your money and your decision. Take advice and gather the facts. At the end of the day, you are the only one who can decide what’s right for you and your investments.

What the best piece of advice you’ve gotten from another investor?

Be sure to leave your comments below!

Subscribe to our mailing list

* indicates required Email Address * First Name Last Name

About Author

In 2005, Chris Clothier (G+) began working with other investors and has since helped hundreds of investors purchase over 2,300 properties in Memphis, Dallas and Houston through the Memphis Invest family of companies.

18 Comments

  1. Hey Chris,

    Thanks for your great post.

    The more opinions you can get from as many people as possible will assist in molding your own decision for the better.

    Don’t be too busy to stop and talk to people as what they say might one day might change your life.

    I was talking to a homeless man quite a few years back and sharing a heated real estate debacle that I had going at the moment.

    These where the words he mentioned that changed my life in a way: “Fight for what you believe in and only drop your guns when your wrong, then pick them straight up again”.

    I have them framed in our office.

    Best opinion I ever received from the unlikeliest source.

    Thanks for reading and have a great day.

  2. Sharon Vornholt

    Chris –

    This is a much needed post.

    Folks should be wary of taking advice from people for all of the reasons you stated in your article. But they should be especially cautious taking advice from folks that don’t have successful real estate investing businesses themselves. There are a lot of people out there giving out advice especially to new investors that have never done a deal themselves. That is heading into dangerous territory when you base your investing decisions on their advice!

    Sharon

    • Chris Clothier

      Great point Sharon. No more who is giving the advice and what type of credibility they want to throw your way, always dig a little deeper and find out how successful they have been and better yet, what mistakes they have made.

      It is never surprising to me when I find out that an investor says they have never made a mistake and you find out they have never really done any deals either!

      Thanks for reading and commenting.

      Chris

      • Chris, great post as always. Very impressed with what you have accomplished. I am a RE investor in Philadelphia area. I buy/hold and flip houses. Currently I am managing 35 proprieties of my owe with no employee. I want to start a management firm to manage my own properties and also for others.
        As you may know that more and more Affluent Chinese are purchasing properties oversea. . I am a Native Chinese speaker, came to this country 20+ years ago to finish MBA program. Recent trip to China, I am convinced that there are great opportunities to tap into for turnkey business.
        I think you have a great system there, and I would like to learn and follow your system, willing to pay for your time. Maybe we can work together to tap into Chinese niche market?
        Shirley

  3. I see a lot of investors giving “it’s my way or the highway” advice a lot lately, and frankly, it’s a big turn off. I love BP for the diversity it offers members in terms of all the different ways to invest there are, but when advice starts morphing into bullying, that’s a dangerous trend and one many newbies may not be able to sort out for themselves.

    I’ve found listening to my gut has always served me well. Stick with what you feel suits your personality, strengths, and situation the best and don’t let anyone else tell you otherwise.

    • Chris Clothier

      Sharon –

      You do a great job of sharing on the BP forums and I really do think you do a nice job of giving advice without coming across as a person who thinks her opinion is the only one that counts. I think you are respectful of others and forceful when sharing your experience and thoughts. I think those are outstanding qualities for a new investor to look for when taking advice. They should look for someone who is knowledgable and forceful in the way they share their opinion, but also respectful in the way they deal withe pieces of advice that may go in another direction.

      Thanks for reading and sharing.

      Chris

      • Well thanks, Chris. Nicest compliment I’ve had in a while :)

        I do my best to both share and absorb – it’s important to realize that we all can learn something from each other. Take care.

    • Agreed Sharon. Or I’ll hear or read that it made them $X or this or that many transactions or properties so their advise is the only ticket. Every situation is different, every investor is different, and everyone has different goals, risks, and budgets.

    • Chris Clothier

      Thanks Josh. I did not say it in the article, but while presenting at the BP summit a couple of years ago, I said something on stage that I have tried to always repeat when I am talking to groups of investors. I tell them to take nothing I am saying on faith! Make a person giving you advice or presenting you a topic or even in my case presenting on their company or service for investors, make them earn your respect and trust. It happens over time not instantly. Same goes for taking advice!

      i appreciate your comments – take care.

  4. Jordan Thibodeau on

    Great post. Not only is it important to compare advice to the relevant market, it’s important to understand the person’s risk tolerance. Another is seeing if this person pursues real estate as a full time job or a hobby.

    • Chris Clothier

      Jordan, those are both great points. Excellent job of pointing those out for the readers that they need to not only consider the advice and the person, but from what perspective they are talking.

      Chris

  5. Stevie Johnson on

    This is awesome advice. Im new to investing and I have come across many different guru’s, none from my city. This advice is much needed for me, sometimes I take in to much info from different places and end up getting confused. What Ive learned so far is everyone has their different techniques I just need to take a little from each one and incorporate that into something that works for me.

  6. When I give advice or opinions it is from my unique perspective. Thus my advice will not be prudent guidance if their circumstances are different. I enjoy working on properties and managing my guests. I am a workaholic and it works for my family and myself. If someone wants to be hands off, doesn’t know the difference between a jig saw and a circular saw, would much rather put in 40 hours of work a week and keep up with the Kardashians then my experience might not lead them to be happy and successful in their investing. I make it a point to attempt to understand somewhat the perspective if the person giving advice or opinions as well.
    At the end if the day, knowledge is power but only if utilized correctly. Great post, Chris!!!

  7. Great article. One t hing I see happen is people answer a question asked but don’t consider the context. For example the “Would you buy this” questions. Well yes, I would, because I have done rehabs enough to know how. But then should come the qualifier. No, I don’t think it is a good first property if it has that problem. Too often that is left off. Or even worse is the “I got away with it” answer. That is where reading the forums a lot helps. You can learn personalities, strengths and weaknesses and know who to listen to when.

Leave A Reply

css.php