Reconciling Conflicting Information / Dealing with Negativity

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Reconciling Conflicting Information / Dealing with Negativity

Jewel B.Pro Member
New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes

Happy Weekend everyone,

Today I want to ask how everyone deals with contradictory information, negativity and discouragement, and naysayers.

What I mean by this is that with every market or strategy one chooses, you will find plenty of people saying it's great and plenty of people saying it's terrible. How heavily do you weigh the doomsday advice and articles in your decision making? How do you know what's real or not?

For example, looking at one market people might say great cash flow or ROI and others might say it's terrible and there's no deals around. Or with STRs some people might say they're great and others say it's oversaturated, share horror stories, say occupancy and revenue is low, and generally make it sound unappealing. And not just individuals out of the game but individuals in the game. And not just individuals but also news articles such as this recent one.

How do you settle on a market and strategy and move forward when your head is spinning with totally different information?

Thanks!

P.S. My interests are rental property investing in LTRs/MTRs/STRs, student housing and Section 8, SFHs and small MFHs, FHA househacking locally in Pennsylvania, and OOS investing in the Midwest/South/Sunbelt, particularly Ohio, Indiana, West Virginia, or North Carolina. Value adds. Clearly not all at once :)

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y

Run your own numbers, learn your markets, figure out your comfort zone...... and forget what everyone else says.

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  • Tim Johnson
    Real Estate Agent · Skagit Valley, WA · Member since 2021 · 256 posts · 283 votes
    3y

    @Jewel B. yes, clearly too many areas of interest. You're going to have to do some self-refecting on your own skill-set and deepest interests.....and narrow that list down to one or two strategies at most...."try chasing two rabbits....and you'll not catch either one".

    As far as dealing with conflicting information. ALWAYS consider the source. Print and online versions of ANY periodical or newspaper, magazine, etc. - they ALL make money off of circulation, readership, clicks online, etc. That's why most headlines can be considered pure click-bait these days. Your example is a great case: INMAN, a well respected source of information in the RE community - yet, look at their headline: "Airbnb Bust is Upon Us!!....a tweet hints at Airbnb's fall. But is it right?"  Ridiculous. They get you to click...and then they cover their tails with that final question - "but is it right?" No indication of whose "tweet" they're talking about. And you know that the article will end up saying "it's all local." I challenge you to quickly find 5 other headlines with this EXACT same pattern. They're everywhere - whether it's Redfin....or the Wall Street Journal.

    The info you want to hear and listen to is information coming from other investors working and profiting in your local area. (Or trusted sources if out of your area.) 

    4Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Jewel B.:

    Happy Weekend everyone,

    Today I want to ask how everyone deals with contradictory information, negativity and discouragement, and naysayers.

    What I mean by this is that with every market or strategy one chooses, you will find plenty of people saying it's great and plenty of people saying it's terrible. How heavily do you weigh the doomsday advice and articles in your decision making? How do you know what's real or not?

    For example, looking at one market people might say great cash flow or ROI and others might say it's terrible and there's no deals around. Or with STRs some people might say they're great and others say it's oversaturated, share horror stories, say occupancy and revenue is low, and generally make it sound unappealing. And not just individuals out of the game but individuals in the game. And not just individuals but also news articles such as this recent one.

    How do you settle on a market and strategy and move forward when your head is spinning with totally different information?

    Thanks!

    P.S. My interests are rental property investing in LTRs/MTRs/STRs, student housing and Section 8, SFHs and small MFHs, FHA househacking locally in Pennsylvania, and OOS investing in the Midwest/South/Sunbelt, particularly Ohio, Indiana, West Virginia, or North Carolina. Value adds. Clearly not all at once :)


     Who cares what anyone says 100% irrelevant. I was told I was crazy to set up shop in the Cleveland markets 10 years ago, well how wrong they all were. 20 -30% net caps on top of the double, triple or more in value. Now we are trying to buy as much as we can in EAST Cleveland, (certain parts) many will say we are crazy, but they are clueless. Just run the numbers it if makes sense buy them, however you must have a team in place. 10% net caps are to be had. Just connect with those doing deals. Its all about your team and knowledge  

    Good luck 

    4Reply
  • Michael Swan
    Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    3y

    Love me some Lake County, 30-40 minutes east of Cleveland!!

    I have 8 apartment complexes in Painesville and one Apartment complex in Mentor!!

    Swanny (BP podcast 238 Guest)

    2Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    Run your own numbers, learn your markets, figure out your comfort zone...... and forget what everyone else says.

    4Reply
  • Bob S.
    Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
    3y
    Quote from @Bruce Woodruff:

    Run your own numbers, learn your markets, figure out your comfort zone...... and forget what everyone else says.


     Every notice the haters are the ones that sit on a bar stool on wends night and eat chicken wings LOL. Never do a darn thing but give advice :)

    All the best 

    3Reply
  • Shafi Noss
    Lender · Nationwide · Member since 2018 · 571 posts · 310 votes
    3y

    This conundrum isn't just in real estate, I see the same conflicting information in health, politics, and other areas of finance. 

    I think it is useful to look at the incentives and experience of the person giving the advice. 

    Another tool I use is to think about the things I already understand and can rely on. If the information source contradicts that, it might be a good indication the other information they have is not good either. Then you can pare down who you listen to to higher and higher quality sources of information. 

    1Reply
  • Theresa HarrisPro Member
    Member since 2019 · 15k+ posts · 11k+ votes
    3y

    Do your own research and do what is right for you. Don't worry about what other people think.  Pick one of the areas you are interested in.  Run the numbers and pick a place that works.  You can always try something the next time.

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Shafi Noss:

    This conundrum isn't just in real estate, I see the same conflicting information in health, politics, and other areas of finance. 

    I think it is useful to look at the incentives and experience of the person giving the advice. 

    Another tool I use is to think about the things I already understand and can rely on. If the information source contradicts that, it might be a good indication the other information they have is not good either. Then you can pare down who you listen to to higher and higher quality sources of information. 

    Oh it's definitely present in other areas too! Another one relevant for me lately is career/education paths. One group will say it's necessary to do XYZ and that XYZ career is so amazing and flexible and high paying and so many jobs being added every year, then the next group says you can just get XYZ education and that the job has terrible pay and work life balance and they're doing a bunch of layoffs etc. Ugh.
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Negative people everywhere, I feel bad for them. A lot of bad information out there as well, take everything you hear with a grain of salt and make your own mind up 

    2Reply
  • Justin BrickmanBusiness Member
    Realtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
    3y

    When they don't need to tap you on the shoulder for everything

    [email protected]210-827-6020
    Justin Brickman Realty4.9144 Reviews
    WebsiteView Page
    0Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Jewel B.:

    Consider the source. 

    You'll find differing opinions even among the experts, but the expert opinions are typically backed by experience and data whereas the amateurs are spouting whatever they hear from others and happen to believe.

    Get the opinion of people with actual experience, then do your own research to verify what they've told you.

    The DIY Landlord Book4.7248 Reviews
    WebsiteView Page
    0Reply
  • Joe VilleneuvePro Member
    Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
    3y

    This is actually a very easy answer.  The answer comes in two parts:

    1 -   Look at the numbers...that actual ones, not the ones with percentages behind them, the actual calculated numbers, using actual real life comp, insurance, taxes, etc...numbers with dollar signs in front.

    2 - What's the reason for the different opinions based on the same results?  All squares are rectangles, but not all rectangles are squares.  Put another way, one person's junk, is another person's antique. 

    2Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

     Well, this is business. It has a lot and is full of risks. Never assume this is a passive activity only.

    0Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    I'm with you on the conflicting information. And I think we're in the same boat, looking to start our REI journey. There's a ton of markets to look at, yet so little opportunity to the naked, untrained eye. It can be overwhelming, but I've been through this process before. I've opened(and closed) a dozen business, 10 still running, 1 consolidating, 1 complete failure. It's going to take a little time to narrow it down & really focus in. But that takes research, time, and the market doing what the market does. Once that happens, you have the confidence to operate on your own.

    And that leads to dealing with negativity, if you really did your homework. You're not worried about taking the test and dealing with the outcome. You know you're good. 

    For me, personally, I have a bunch of stuff in Q1 '23 that'll make me wait. It's not a market thing. Taxes and legal protection are #1 & #2. I need to know how much dry powder I have, and get myself set up. In the meantime, I'll learn some more creative financing tools & really narrow down what markets I'll make a move on first. I trust in that time I'll learn the stuff I need to, and once I get the real experience, I'll learn more.

    4Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Jewel B.:

    P.S. My interests are rental property investing in LTRs/MTRs/STRs, student housing and Section 8, SFHs and small MFHs, FHA househacking locally in Pennsylvania, and OOS investing in the Midwest/South/Sunbelt, particularly Ohio, Indiana, West Virginia, or North Carolina. Value adds. Clearly not all at once :)


    Also, I don't know if you can see it, but you are really scattered all over the place. You're basically saying that you want to do anything, anywhere.

    I would personally try to narrow it down a little, when you're this scattered, it lessens the power of your focus and drive.

    1Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    3y

    @Jewel B.

    think about it in terms of risk.  the riskier the strategy, the more of a variety of opinions you will be able to find.

    take house hacking.  it's a low risk way for new investors to get started, and is pretty uncontroversial.  not much of a variety of opinions on it.

    but as others mentioned, you listed multiple strategies in multiple locations.  that's a lot.

    if you pick one location and one strategy, you'll get more focused advice.  even if it's not all in total agreement.

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y

    all these conflicting things are coming because someone in bigger pockets say real estate investing is passive and there's huge money to be made LOL

    I'm busier 3x in real estate than in my actual w2 job 

    0Reply
  • Michael Swan
    Rental Property Investor · San Diego, CA · Member since 2014 · 1k+ posts · 2k+ votes
    3y

    Exactly @Carlos Ptriawan

    It is passive if you want to lose your ***!! I protect my assets and my family and friends money like a little pit Bull.  You can trust to an extent, but you must have checks and balances and verify everything. I retired from my teaching job 2 school years ago and it is a huge duty, responsibility, and obligation to me to do so!!!


    Feel free to pick my brain.  It is my pleasure, honor and privilege to do so!!

    Swanny (OG BP Podcast 238 Guest with Brandon Turner and Scott Trench)

    2Reply
  • Account Closed
    Rental Property Investor · Indianapolis, IN · Member since 2020 · 562 posts · 554 votes
    3y

    @Jewel B. For me it always comes down to the numbers. If the numbers look good on a specific deal everything else is just noise. Local market info and everything else obviously factors in, but is not as important if the deal looks good on its own. Decide what is most important to you and ignore everything else.

    1Reply
  • Mike Dymski
    Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
    3y

    “Don’t be distracted by criticism. Remember, the only taste of success some people have is when they take a bite out of you.” -Zig Ziglar

    The forums can be tough to get good information.  Most replies to posts from newer investors are disguised marketing activities and sales pitches.  And then we have all the 'market crash' opinion posts that don't help at all with how to win at investing.  The fastest path to execution (and real information) is analyzing real opportunities (and making offers).

    3Reply
  • Dominique Walker
    Investor · Lexington, KY · Member since 2022 · 7 posts · 2 votes
    3y
    Quote from @Jewel B.:

    Happy Weekend everyone,

    Today I want to ask how everyone deals with contradictory information, negativity and discouragement, and naysayers.

    What I mean by this is that with every market or strategy one chooses, you will find plenty of people saying it's great and plenty of people saying it's terrible. How heavily do you weigh the doomsday advice and articles in your decision making? How do you know what's real or not?

    For example, looking at one market people might say great cash flow or ROI and others might say it's terrible and there's no deals around. Or with STRs some people might say they're great and others say it's oversaturated, share horror stories, say occupancy and revenue is low, and generally make it sound unappealing. And not just individuals out of the game but individuals in the game. And not just individuals but also news articles such as this recent one.

    How do you settle on a market and strategy and move forward when your head is spinning with totally different information?

    Thanks!

    P.S. My interests are rental property investing in LTRs/MTRs/STRs, student housing and Section 8, SFHs and small MFHs, FHA househacking locally in Pennsylvania, and OOS investing in the Midwest/South/Sunbelt, particularly Ohio, Indiana, West Virginia, or North Carolina. Value adds. Clearly not all at once :)


    Run the numbers yourself, if they check out and you like them continue on the path you’re going! There is negativity and people screaming “the sky is falling” everywhere, learn how to tune out the negativity and focus on what you want! Don’t let their fear and insecurities stop you. 

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Carlos Ptriawan:

     Well, this is business. It has a lot and is full of risks. Never assume this is a passive activity only.

    I'm self employed with a flexible schedule and have long had an interest in Real estate. I do not need something 100% passive. That's what my Brokerage accounts are for. I'm happy to put in work. 
    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Bruce Woodruff:
    Quote from @Jewel B.:

    P.S. My interests are rental property investing in LTRs/MTRs/STRs, student housing and Section 8, SFHs and small MFHs, FHA househacking locally in Pennsylvania, and OOS investing in the Midwest/South/Sunbelt, particularly Ohio, Indiana, West Virginia, or North Carolina. Value adds. Clearly not all at once :)


    Also, I don't know if you can see it, but you are really scattered all over the place. You're basically saying that you want to do anything, anywhere.

    I would personally try to narrow it down a little, when you're this scattered, it lessens the power of your focus and drive.


    It's more that I have a goal with a flexible approach. It is a lot of options but it's narrowed down from way more options even 😅  and again not trying to do them all at once

    0Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Nicholas L.:

    @Jewel B.

    think about it in terms of risk.  the riskier the strategy, the more of a variety of opinions you will be able to find.

    take house hacking.  it's a low risk way for new investors to get started, and is pretty uncontroversial.  not much of a variety of opinions on it.

    but as others mentioned, you listed multiple strategies in multiple locations.  that's a lot.

    if you pick one location and one strategy, you'll get more focused advice.  even if it's not all in total agreement.


     Within Ohio, Indiana, or West Virginia are specific areas or markets I'm considering, not the entire state. NC too is narrowed down to a few areas. 

    it's more that my goal is cash flow and I'm flexible in my approach. However I did narrow it down to those places based on a number of facts. But if for example the cash flow on a LTR in Ohio or Indiana would be equal to the cash flow of a MTR in NC, then I figure why not watch those few markets since you never know when and where you'll find opportunity. 

    1Reply
  • Jewel B.Pro Member
    OP
    New to Real Estate · Lehigh Valley, PA · Member since 2021 · 352 posts · 120 votes
    3y
    Quote from @Carlos Ptriawan:

    all these conflicting things are coming because someone in bigger pockets say real estate investing is passive and there's huge money to be made LOL

    I'm busier 3x in real estate than in my actual w2 job 


     What keeps you so busy? What type of real estate and how much?

    anyhow, I'm more than happy to put in work and eventually replace my job with it if possible. I'm self employed and flexible so work is no issue

    0Reply
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