BiggerPockets Real Estate Podcast

BiggerPockets Podcast 122: 5 Myths Holding Investors Back From Real Estate Greatness with Chris Clothier

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On this episode of the BiggerPockets Podcast, we’re talking about myths. No, not about Sasquatch, elves, or the abominable snowman. We’re talking about real estate myths that might be holding YOU back from greatness! We’re excited to bring back Chris Clothier, a seasoned investor and business owner who shares stories from his own experiences to help you achieve new levels of success. Don’t miss one second of this incredibly powerful and actionable podcast!

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This Show Sponsored By

We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

Learn more by visiting RealtyShares.com/biggerpockets!

In This Episode We Cover:

BiggerPockets-Podcast-Cover 300 300

  • Who is Chris Clothier?
  • What got him into real estate?
  • Getting to the top 50 Home Buyers
  • Five Real Estate Investment Myths
  • Myth 1: Don’t work with family
  • Myth 2: Past performance is a reliable predictor for future investments
  • Myth 3: Investing in real estate is a big time sink
  • Myth 4: You should only invest locally
  • Myth 5: You should avoid risk at all cost
  • Five specific scenarios that are risky and how Chris would handle them
  • Learn an amazing tip when closing a deal!
  • How not to get ripped off by a property management company
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “You don’t have a job for everyone.” (Tweet This!)
  • “In any partnership there should be clear lines, clear boundaries, and clear respect.” (Tweet This!)
  • “A lot of investors look to go out of area first because they don’t understand real estate.” (Tweet This!)
  • “There  maybe more risk with a lower cost investment, than higher cost investment.” (Tweet This!)
  • “Our fear of losing money is greater than our desire to earn.” (Tweet This!)
  • “Risk is all about assessing the good and the bad of making the decision or not making the decision.” (Tweet This!)
  • “For investors, risk is not a bad thing.” (Tweet This!)
  • “There is no perfect time.” (Tweet This!)

Connect with Chris

Real strategies that work for real people seeking to build wealth through real estate investments. Co-hosted by Brandon Turner and David Greene, this podcast provides actionable advice from investors and other real estate professionals, who chat about failures, successes, motivations, and lessons learned.

    Jonna Weber Real Estate Agent from Boise, ID
    Replied over 4 years ago
    What a great way to start the morning! Chris, thanks for continuing to share and teach. I work with out of state investors daily, and I will definitely be recommending this podcast.
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Wow, Jonna. Those are amazing comments and I am thankful that you listened! I hope you are having great success up there in Idaho (I think i remember correctly…(: ) and would be happy, as always, to help however I can. All the best to you – Chris
    Sue Makara Investor from Indialantic, Florida
    Replied over 4 years ago
    Thank you for sharing this great info Chris! I recently joined BP and so far it’s been an excellent source for REI!
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Hi Sue, I appreciate your comments and have some great news for you! I am just a small part of the whole community. One fish in a HUGE pond full of really great people, great advice and really good commentary. Thanks again for listening to the podcast and reach out on BP if I can ever be of service! Chris
    Allison Karrels Investor from Gainesville, Virginia
    Replied over 4 years ago
    It was cool listening to Chris talk today because I am about to close on my first Memphis Invest property tomorrow! It was a very easy process and I am sure once I have saved up for my next down payment I will get another. His team (both Ashley’s and Ryan) is great.
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Allison – Thank you so much for your the trust and faith you have put in our company and we will absolutely do everything to make your investing experience a ‘wow’! As an experienced investor, I can promise you everything will not go perfect. Things happen including human error and mistakes. As an entrepreneur and business owner, I can promise you that we will always be here to help in those instances and do anything we can to help. Please don’t ever hesitate to reach out to me if I can do anything for you! And…before I forget…thank you for listening to the podcast and taking some time to leave you comments! All the best, Chris
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    I listened to the podcast last night with my two sons so they could hear a little bit about my company. I had actually forgotten how much fun I had recording this podcast with Josh and Brandon. These tow guys are actually hilarious and I they are both as smart as they come in so many areas. The fact that they can do this and have fun at it and at the same time carry the conversation with so many different professionals speaks volumes about how good they are!
    Michelle Joiner Professional from Hollywood, Florida
    Replied over 4 years ago
    Way to Go Chris! 3, 000 + properties & still expanding. It was a pleasure to hear you speak on how you started & your still pursuing more real estate opportunities. I admire you and look forward to staying connected. Best wishes as you continue to move forward day in and day out!
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Michelle – Thank you so much! My family means everything to me and all of us have worked really hard through the years. I loved being able to share on this podcast how much I have learned about business, life and good relationships from my family! Thanks for listening in to us and for leaving your comments. All the best to you – Chris
    Joe Kim Rental Property Investor from SF Bay Area, CA
    Replied over 4 years ago
    Great podcast. educational, funny, and inspiring! Quick question, I see advertising online for wholesaling “guru” named Kent Clothlier….and relations?
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Hi Joe, Kent is my older brother that I reference a couple of times in the podcast. HIs online systems are the ones we use to run parts of our marketing business and all of the same resources that are in those systems are the ones we use. They are essentially built off of our company. Thanks for listening to the podcast and for leaving your comments! Glad you enjoyed it – Chris
    Robert Lockwood Investor from Greenwell Springs, Louisiana
    Replied over 4 years ago
    Great show! Chris, after hearing your thoughts on the importance of signing the lease under professional and structured circumstances, I am thinking of having my leases signed at a notary’s office (my attorney). I’m not certain this will add any value to the legally-binding nature of the lease, but it will set the stage for a very professional tenant relationship and generate a bit of business for the attorney at the same time. Best, and thanks for sharing, -Robert
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Robert, You are correct about not adding anything necessarily more “legal” to the closing. But it does do a lot for setting the proper expectations for that tenant right from the beginning. All the best to you and thanks for your comments. Chris
    Peter Mckernan Residential Real Estate Agent from Newport Beach, California
    Replied over 4 years ago
    It was another great podcast! I have heard you speak at a couple of different events and I always learn something new when I am able to listen to you speak!
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Peter – I appreciate your comments! Thanks for listening to the podcast and taking some time to leave your thoughts. All the best – Chris
    Account Closed from Anchorage, Alaska
    Replied over 4 years ago
    “those who haphazardly just go out and buy a bunch of rental properties.” WRONG! Being an artist and enjoying my work, and family, Becoming a real estate tycoon is not my priority YET THAT DOES NOT MEAN I WILL NOT HANDLE MY BUSINESS WITH THE SAME DEGREE OF PROFESSIONALISM AS A MORE SERIOUS INVESTOR.
    Chris Clothier Rental Property Investor from memphis, TN
    Replied over 4 years ago
    Tamara, It looks like you were offended (?) with something, but I am not quite sure what it is. Surely you are not saying that because real estate is not your top priority, then you are going to go out and haphazardly buy a bunch of rental properties. Surely that is not your point. That is a recipe for disaster. You do not have to set a goal of being a real estate tycoon (your words not mine) to treat your investments in a professional manner. And not having that as your goal does not mean you act in a haphazard manner. I never said that and am not sure how you could have heard that in the podcast, but possibly you did. People who act in a professional manner when investing in real estate, no matter how big they are, do not just run around buying houses and making bad decisions, i.e. – failing to do proper due diligence, failing to inspect, overpaying for property and renovations, failing to act professional as a landlord. In the podcast, you hear that I was the investor running around haphazardly. I was the one making all the mistakes until I learned to act more professionally. Hopefully, you learned those lessons much earlier than I did. Thanks for listening to the podcast and taking some time to leave some comments. All the best – Chris
    Elizabeth B. Investor from Beijing, Beijing
    Replied over 4 years ago
    Hi Tamara, the phrase quoted above comes from the presenters’ intro, not from the guest Chris Clothier. As an artist, I can empathize that we have certain challenges in the real estate industry. However there is no question that, just like real estate, art is an industry. Whether and to what extent we participate in it is up to us. It’s the same with real estate. We must have our priorities and criteria set, and follow them (not ‘haphazard buying’). Our art, our real estate, and our life should be approached with respect for ourselves and others – and always, always with professionalism.
    Claudio Golia Homeowner from Wallingford, Connecticut
    Replied over 4 years ago
    Thanks Chris. Great stuff here for all levels of REIs. Appreciate you offering up your experience and resources.
    Hoa Huynh from New York City, New York
    Replied over 4 years ago
    I love this podcast, Chris! A lot of lessons for me to learn. Specially about signing contract at the attorney’s office. Lower investment doesn’t mean lower risk as you mention. Evict a tenant if they don’t pay water bill which show how serious you want them to know. All of these points show me how straight forward and professional investor you are. Really enjoy it. Thank you for your time and sharing all these great lessons.
    Stephanie Dobbs Real Estate Broker from Bowie, Maryland
    Replied over 4 years ago
    Mr. Clothier, Great podcast! It was great listening to you all and all provided great information! I don’t know personally 6 investors in real estate, I’m affiliated with one and have reached out to others here on BP, but what could I do to ensure being successful in real estate investing (according to what you’ve said)?
    Scott Painter Investor from Newburgh, Indiana
    Replied over 4 years ago
    Long distance question. I own a 3/2 condo in Champaign IL near U of I. Rented through a manager for $800 while units with other management companies are $980. Asked for an increase and it isn’t a high priority. Do I pull it off their books and find another manager or sell it an find something local.
    William Gillette Investor from Spokane, Washington
    Replied almost 4 years ago
    Very inspirational podcast. It’s one of the shows and I will probably listen to several times just to learn and soak in all the knowledge you provided.
    Katie Rogers from Santa Barbara, California
    Replied about 3 years ago
    Include the water bill in the rent, just like you include the property tax, etc. Easy.
    Don Spafford Investor from Idaho Falls, ID
    Replied about 2 years ago
    I love Chris’ podcasts and love the company he is running. it is a great model.