Real Estate Investing Basics

The Importance of Being a Genuine Person In Real Estate

Expertise: Real Estate Investing Basics, Personal Development, Landlording & Rental Properties, Real Estate News & Commentary, Business Management, Flipping Houses, Real Estate Deal Analysis & Advice, Personal Finance, Real Estate Marketing
235 Articles Written

Real Estate investing is a numbers game. For anyone that has ever thought about purchasing just one property, all it takes is a few quick calculations and you’ll begin to see the dollar signs $$$.

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It’s pretty simple math too. I don’t know anyone that doesn’t enjoy cashing checks each month and really feeling their investments pay off. Just like with any investment vehicle, you need to weigh the risk and the more money you invest the higher the potential return!

People ask me all the time “How do you find such great deals? I also want to buy similar properties.” For this I ask “What are you looking to achieve and what is your end goal?” I mean, if all you want is a check each month there are many other investment opportunities that can provide just that. So many see Real Estate investing as an easy alternative to other financial products, for anyone who thinks this, I give a word of caution.

Warning!

Yes, it is simple math. Yes, you can make a lot of money.

Yes, it is the best thing I have ever done in my life and so rewarding AND I have made a lot of money. I emphatically ask: Do you like people? Not just people, but strangers? Are you committed to developing long term relationships? Do you enjoy being fully responsible (well mostly) for the conditions in which another family will be living? Would you get yourself out of bed at 2am to go fix someone else’s broken toilet only to find that they caused the problem and not even get a “Thank you”?

Related: How To Get Rid of Crazy Tenants

I have met so many investors that got into Real Estate only looking at the numbers and completely ignoring the people factor. Folks, people are responsible for making those numbers work. They pay each month so we can feel good about cashing the checks. Many of the great deals I find come from those same investors that didn’t think about building relationships with their tenants and where only focused on the figures. They couldn’t stand the interpersonal aspect side of the business. They provided little communication and where unresponsive to maintenance issues because they just didn’t care about the tenants, only the “return.”

When you have a property and accept a tenant you are assisting those individuals to provide for their basic need; shelter. Now don’t get me wrong, this IS a business and if they stop paying, you need to be firm and find the best solution for all parties. You’ll need to check your emotions at the door for some of the similar heart wrenching personal issues I have dealt with over the years, but even at those times you can only do so much.

In Conclusion

I have learned that the majority of people respect themselves and are prideful of their residence, even if they don’t own it, they pay up every month as long as you keep your end of the bargain. Part of that agreement is being able to communicate with them, at times help them out, and even sparing a few moments to share a laugh.

Related: Motivated Sellers: How To Get Them To Say Yes When Normally They’d Say No

In Real Estate, you’re not required to be friends however, you are rewarded if you’re friendly! Above all, YOU MUST LIKE PEOPLE to build a sound and sustainable investment portfolio. A property is just a building, the people pay the rent.

Are you a people person? Do you focus on building trust and relationships?

I’d like to hear your comments below and thanks for reading!

Engelo Rumora, a.k.a."the Real Estate Dingo," quit school at the age of 14 and played professional soccer at the age of 18. From there, he began to invest in real estate. He now owns real estate all over the world and has bought, renovated, and sold over 500 properties. He runs runs Ohio Cashflow, a turnkey real estate investment company in the country (Inc 5000 2017 & 2018) and is currently in the process of launching a real estate brokerage called List’n Sell Realty. He is also known for giving houses away to people in need and his crazy videos on YouTube. His mission in life is to be remembered as someone that gave it his all and gave it all away.

    Nick Vandekar
    Replied about 5 years ago
    Very good post and very true. I find the investors we work with who do best are those you describe.
    Engelo Rumora
    Replied about 5 years ago
    Hi Nick, Thanks for your comment. There are many attributes that make a successful investor. Having people skills is a big one in my opinion. Have a great day.
    Nick Vandekar
    Replied about 5 years ago
    Very good post and very true. I find the investors we work with who do best are those you describe. Reply Report comment
    Lisa DuFaux
    Replied about 5 years ago
    I completely agree. I have some friends with rental property who think I am too “giving” when it comes to my tenants and properties. I just believe it is the right way to deal with people, but in addition, it has the benefit of producing loyalty. While my friends are chasing rent, my happy tenants are texting me to let me know they have sent the payment!
    Lisa DuFaux
    Replied about 5 years ago
    I completely agree. I have some friends with rental property who think I am too “giving” when it comes to my tenants and properties. I just believe it is the right way to deal with people, but in addition, it has the benefit of producing loyalty. While my friends are chasing rent, my happy tenants are texting me to let me know they have sent the payment!
    Engelo Rumora
    Replied about 5 years ago
    Hi Lisa, Thanks for your comment. We always go above and beyond for every tenant and as you mentioned its great to receive those texts that the rent is paid. We even have some tenants that pay us before the 1st 🙂 Have a great day.
    Keith Weinhold
    Replied about 5 years ago
    This is a smart column post, Engelo. Yes, I agree. Real estate investors exist to serve tenants, not exploit them. Service and profiteering may be done simultaneously. Personally, my four-fold mission to tenants is to ensure that my Property Manager provides them with housing that is: – Clean – Safe – Affordable – Functional If this is provided for my tenants, I am happy. We’re dealing with peoples’ homes here – the physical center of their lives. In general, I do not add the word “Beautiful” to the list above. Providing “Beautiful” housing amenities and fixtures for my well-kept Class C properties can rapidly erode profitability. Be ethical, yet don’t be gullible.
    Engelo Rumora
    Replied about 5 years ago
    Hi Keith, Thanks for your great comment. 100% agreed. As you mentioned overcapitalizing on the renovation is not sustainable moving forward and every renovation should cater for the particular area and type of tenants that will be residing there. Thanks and have a great day.
    Chad Carson
    Replied about 5 years ago
    Hey Keith, I love the distinction and balance between being of service and being gullible. Well said. I also like your comment about keeping in mind the type of properties you’re fixing. No property should be a slum. but a C-class property doesn’t have to be a fancy place either. If we (real estate investors) could just eliminate the unsafe and unclean part of the equation from rental housing, we would have a much better reputation as a group.
    Chad Carson
    Replied about 5 years ago
    Hey Engelo, Awesome article. Well said. You explained well that this is not only about doing the right thing by people, but it’s about making sure we as investors are built for this PEOPLE game. It’s all about people. If you don’t love interacting with people, don’t do any of the active parts of this business – management, wholesaling, real estate agent, working with private lenders, etc. And If you don’t love working with people, you better make a lot of money somewhere else so that you can just be a passive investor with others who do love people. Thanks for sharing.
    Engelo Rumora
    Replied about 5 years ago
    Hi Chad, Thanks for your comment and kind words. Just to add ti your awesome comment. People buy people and not products, so its also more profitable to interact and be a people person 🙂 Thanks and have a great day.
    Jamie
    Replied about 5 years ago
    It’s clear that you have to be very determined to be in this line of work! Like you said, sometimes you need to wake up in the middle of the night because someone’s toilet is broken. You just have to be prepared to get your hands dirty because if you are prepared then the bad things that will inevitably happen will not get you down or not have as much of an influence on you.
    Engelo Rumora
    Replied about 5 years ago
    Hi Jamie, Thanks for your comment. “Hope for the best but expect the worst” as the saying goes. Have a great day.