{"id":118564,"date":"2019-11-10T12:00:51","date_gmt":"2019-11-10T19:00:51","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=118564"},"modified":"2023-08-09T10:46:22","modified_gmt":"2023-08-09T16:46:22","slug":"common-roadblocks-investing-real-estate","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/common-roadblocks-investing-real-estate","title":{"rendered":"The 4 Most Common Roadblocks to Investing in Real Estate"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC6401169460\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n<p><span style=\"font-weight: 400;\">Let&#8217;s talk about the most common roadblocks when it comes to investing in real estate. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Throughout my investment journey, I\u2019ve always hit one of these roadblocks\u2014and then I\u2019ve hit it again and again. It\u2019s just been a never-ending cycle. To be honest with you, to this day, I still don\u2019t feel that I\u2019ve hit that snowball effect where everything is just running smoothly. So, I\u2019m not necessarily going to go into the solutions of all of these roadblocks. I\u2019m just going to share some of them with you. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">This blog is more suited for some of the inexperienced investors who are looking to get started in real estate\u2014or even the investors who have started and bought a few properties, and they\u2019re at the beginning of their journey. Ultimately, there are always going to be things that are going to set you back and make you adjust or change direction. But as long as you keep pushing forward, you will eventually get bigger and better, and you will succeed. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, don\u2019t let these roadblocks bring you down, because there is no such thing as giving up. You have to keep going and moving forward.&nbsp;<\/span><\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/LospGLJp4tE\" allowfullscreen=\"allowfullscreen\" width=\"560\" height=\"315\" frameborder=\"0\"><\/iframe><\/p>\n<h2>Common Roadblocks to Investing in Real Estate<\/h2>\n<h3>1. Needing Money<\/h3>\n<p><span style=\"font-weight: 400;\">Look, the first one that I came across when I first got started in my investment journey is <a href=\"https:\/\/www.biggerpockets.com\/blog\/creative-financing\/\" target=\"_blank\" rel=\"noopener noreferrer\">I had a deal but I didn\u2019t have the money<\/a>. I was very good at finding a lot of properties and negotiating hard, but I had limited amounts of capital. Therefore, I couldn\u2019t buy the properties. And being the non-believer I am when it comes to leverage, I missed out on a lot of opportunities. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But rightly so. I didn\u2019t want to use leverage I wanted to use my money. That was my belief and my stance.&nbsp;<\/span><\/p>\n<h3>2. Not Finding Deals<\/h3>\n<p><span style=\"font-weight: 400;\">Then, later on, I <a href=\"https:\/\/www.biggerpockets.com\/blog\/2014\/01\/07\/flipping-houses\/\" target=\"_blank\" rel=\"noopener noreferrer\">flipped<\/a> a few properties and made a bit of money. I was busy project managing. I was working with investors. And all of a sudden, I have all this money and no deals. I kind of slowed down all my acquisition efforts, yellow letter campaigns, prospecting on Facebook, and looking at the MLS and auction websites. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Once again, as an entrepreneur and business owner, you\u2019re wearing so many hats and there are so many fires, you\u2019re going from one fire to the other.&nbsp;<\/span><\/p>\n<h3>3. Not Having Buyers<\/h3>\n<p><span style=\"font-weight: 400;\">Another roadblock I have stumbled across many times, especially in <a href=\"https:\/\/www.biggerpockets.com\/blog\/2015\/12\/15\/turnkey-real-estate\/\" target=\"_blank\" rel=\"noopener noreferrer\">the turnkey industry<\/a> (because I own a turnkey company), is we would have a renovated and tenanted property and no buyers. So, that was another big problem, because now you\u2019re sitting on inventory. And if you sit on inventory for too long, everything is at a standstill. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">In a turnkey business, it all starts with the sale. You sell a property, you get revenue. Then, the people can get paid to do the property management, because we have in-house property management, and it funnels downward. Sales, guys, are the livelihood to every single business. Don\u2019t forget that.<\/span><\/p>\n<p><strong><em>Related:<\/em><\/strong><em> <a href=\"https:\/\/www.biggerpockets.com\/blog\/2016-01-21-6-highly-powerful-words-changed-life-change\" target=\"_blank\" rel=\"noopener noreferrer\">6 Powerful Words That Entirely Changed My Outlook on Success<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">It doesn\u2019t matter how many mistakes you make in other departments. If you are selling and selling well, you can absorb those losses. You need the sales so you can cover whatever you need to cover, make good on your promise to investors, and fix the problems that are going on within your business.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I was once told to drive revenue and keep costs at an absolute minimum. That\u2019s the most important thing for a business when it\u2019s in its infancy stage. No thousand-dollar office desks, OK?&nbsp;<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-112391\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/frustrated.jpg\" alt=\"stress-rentals\" width=\"702\" height=\"336\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/frustrated.jpg 702w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2019\/06\/frustrated-300x144.jpg 300w\" sizes=\"auto, (max-width: 702px) 100vw, 702px\" \/><\/p>\n<h3>4. Missing the Operations<\/h3>\n<p><span style=\"font-weight: 400;\">To repeat everything, I had the deals and no money, then I had the money and didn\u2019t have the deals, and then I had the inventory and didn\u2019t have any buyers. Where I find myself now is I have the money, I\u2019ve got the deals, I\u2019ve got the buyers. I\u2019ve got the finished product (as in the inventory), but I\u2019m missing the operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, that\u2019s another key element to your success is to make sure that you have the operations in check. That you have systems, processes, manuals ready and in place. If you\u2019re looking at building a business, all of these things have to be in order. The people that you are employing need to know what they need to do, because if they don\u2019t know what they\u2019re doing, it can end up being an absolute disaster.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Of course, we\u2019re actually talking about growing a business here, but I think it\u2019ll be the same case for a lot of you investors out there. Even if you\u2019re looking to fix and flip three to five properties every year, that still takes an operation. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">And I do believe that you will still need some sort of process in place for doing certain things. It could be acquisitions or sending out yellow letters. Do you really want to be doing all the work or would you rather outsource that? I know a lot of <a href=\"https:\/\/www.biggerpockets.com\/blog\/ultimate-beginners-guide-real-estate-wholesaling\" target=\"_blank\" rel=\"noopener noreferrer\">wholesalers<\/a> who send a lot of yellow letter campaigns with a lot of virtual assistants. That systemized that process for them.<\/span><\/p>\n<p><strong><em>Related:<\/em><\/strong><em> <a href=\"https:\/\/www.biggerpockets.com\/blog\/2015-07-06-ultimate-guide-systems-outsourcing-real-estate\" target=\"_blank\" rel=\"noopener noreferrer\">The Ultimate Guide to Adding Systems &amp; Outsourcing to Work Less in Real Estate<\/a><\/em><\/p>\n<p><span style=\"font-weight: 400;\">Yes, even something like acquisitions can be systemized, so you don\u2019t have to do the work yourself. That can also apply to project management, rehabs, keeping your contractors accountable, etc. Keep in mind, all of these things need to have checks and balances, too.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, that\u2019s kind of the icing on the cake in a negative way\u2014the operational side of things. I think that\u2019s the hardest thing to master and takes the longest to master. But there are stages in your investment cycle where you will hit any one of these points multiple times. Sometimes to this day, we still hit a certain one. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I\u2019ll give you an example, we just had a frenzy of investors over the last few weeks and sold out of every property. Now, we\u2019re kind of lacking inventory again. Therefore, we need to acquire more properties to meet the demand. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">Look, it\u2019s just the cycle of real estate.&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I am personally looking forward to hitting the snowball effect, as I like to call it. This is where it\u2019s just rolling down that hill and getting bigger and bigger, because if you aren\u2019t growing you are dying. Movement is life; stillness is death.<\/span><\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/blog\/\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-91217\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg\" alt=\"\" width=\"700\" height=\"85\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01.jpg 700w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2017\/08\/blog_ads-01-300x36.jpg 300w\" sizes=\"auto, (max-width: 700px) 100vw, 700px\" \/><\/a><\/p>\n<p><em><span style=\"font-weight: 400;\">What are some roadblocks that you have come across in your real estate endeavors? What are some roadblocks you\u2019re afraid you may encounter?<\/span><\/em><\/p>\n<p><strong>Share in the comment section below.<\/strong><\/p>","protected":false},"excerpt":{"rendered":"<p>Inexperienced investors who are looking to get started in real estate\u2014or even investors who have already bought a few properties\u2014listen up. Ultimately, there are always going to be things that are going to set you back and make you adjust or change direction in this industry. And that&#8217;s OK. You can still succeed.<\/p>\n","protected":false},"author":1672,"featured_media":113429,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524,7119],"tags":[],"class_list":["post-118564","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/118564","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/1672"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=118564"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/118564\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/113429"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=118564"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=118564"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=118564"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}