How To Navigate Through the Advice of Other Real Estate Investors

How To Navigate Through the Advice of Other Real Estate Investors

2 min read
Chris Clothier

Chris Clothier began building his rental portfolio in 2003 as a successful entrepreneur looking to diversify his investments. He quickly gravitated toward passive investing, establishing a portfolio of over 50 single family homes in Memphis, Tenn. As an original client of his family’s firm Memphis Invest (now REI Nation), Chris experienced firsthand what a passive investor endures when purchasing out of state. In 2007, Chris moved his company and family back to Tennessee, wound down his brokering company, and joined REI Nation as a partner and director of sales and marketing.

Experience
Since joining REI Nation, the business has grown into the premier turnkey investment company in the country and a standard bearer for best practices in the industry, managing over 6,000 investment properties for 2,000 passive clients. In addition to managing the development and implementation of sales and marketing processes, Chris serves as an ambassador for the company, working with the team to help potential investors define their purpose for investing in real estate and educating peer companies on best practices.

REI Nation clients’ portfolios hold a value of close to $800 million in single family assets in seven cities. The company has been featured as a six-straight year honoree in Inc. magazine’s list of the 500/5,000 “Fastest Growing Companies in America.”

In 2019, Chris’ team assisted 600 investors with purchasing just under 1,000 fully-renovated and occupied turnkey homes. Chris led the re-brand of his family’s company on January 1, 2020, from Memphis Invest to REI Nation.

Chris is also an experienced real estate speaker and addresses small and large audiences of real estate investors and business professionals nationwide several times each year, including IMN single family conferences, the PM Grow property management conference, and the Ignite conference in Las Vegas each December.

Chris continues to hold a sizable single-family rental portfolio in both Tennessee and Texas. Along with his family, he owns several commercial buildings in the greater Memphis area.

When not working with the team at REI Nation, Chris is busy raising five kids, operating a racing company in Memphis, and serving as CEO for The Cancer Kickers Soccer Club, a Memphis-based 501c3 providing comfort and care for kids battling childhood cancers.

Founded in 2017 by Chris and Michelle Clothier, the non-profit organization focuses on providing a team environment for kids to find encouragement and strength in their battle. The company worked with over 500 children from six countries in 2019.

Press
Chris has been featured in stories published in Money Magazine, The New York Times, The Wall Street Journal, and DN News, as well as the Memphis Business Journal. In 2018, McGraw-Hill Publishing purchased Chris’ manuscript, The Turnkey Revolution, and worked with Chris to publish his first book in May 2018.

Chris also publishes two weekly blogs at ChrisClothier.com and REINation.com. Chris has also published articles on the BiggerPockets Blog since 2009.

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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!