Everyone shutting me down?

Rental Property Investor · Naugatuck, CT · Member since 2016 · 42 posts · 20 votes

I am here trying to get started on the path of real estate and am finding that everyone I talk to (minus people on BP) are almost trying to push me away from the real estate world. Comments like "being a landlord sucks", "it's too much work for how much money you make", or people telling me straight up "you don't want to do that".

I am not afraid of hard work, and there's always doubters when it comes to wanting to do anything, but I'm curious as to why real estate has such a bad reputation? Or is it just the relatively small sample size of people I've talked too?

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Michaela G.

Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes

10y

This happens to everyone. You friends and family always tell you, that you're nuts. Different reasons, but mostly probably have to do with not wanting you to move up a level above them and also just not being able to think outside their comfort zone.

Go find a local REI club in your area and start hanging out with people who are doing it and will support you. Otherwise, you'll have to keep swimming against the current.

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CK Hwang
Capistrano Beach, CA · Member since 2013 · 283 posts · 169 votes
10y
Personally, I would say it is probably a small sample size you are speaking to. Just out of interests, are any of the people you have spoken to successful investors or flippers who have made their money or making their living from it currently? I would imagine it a bit odd if the investor says there is no money in this field if they have made their millions from it.
I'm a believer there is plenty of opportunity in real estate if you work hard or work smart. Unfortunately, I am neither, but I do get by, so that should be an encouragement for you.
8 Reply
Michaela G.
Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
10y
This happens to everyone. You friends and family always tell you, that you're nuts. Different reasons, but mostly probably have to do with not wanting you to move up a level above them and also just not being able to think outside their comfort zone.
Go find a local REI club in your area and start hanging out with people who are doing it and will support you. Otherwise, you'll have to keep swimming against the current.
12 Reply
Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
10y
Probably a few reasons you are hearing that. A small sample number is just one, another is that these people likely had a bad experience and were not pros but beginners and lost, or perhaps they have never invested in real estate and are regurgitating the media spin that is so common (real estate is risky, hard to sell, expensive to maintain, non liquid like stocks, and the other goes on). What the media and these people don't realize is just because they can't does not mean you can't.
That said, jumping into real estate today is not easy, we are (for the most part in most areas, not all) at the top of the market, competition is fierce,medals are scarce, and starting as a newbie is more difficult today due on the current market conditions. That does NOT mean you should not start your RE biz though. Keep getting educated, build your team, and learn your farm market and strategy you wish to use.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
10y
There is no shortage of people who have had bad experiences with being a landlord. I have a friend who was taken advantage of by his property manager, and would never, ever again be a landlord. Two extremely bad experiences with it left such a bad taste in his mouth.
Then you have people like Brandon Turner who can't wait to buy more properties to rent out. If you want to be a landlord, spend some time listening to the podcasts featuring landlords, like Serge Shukhat's episode 60 and 131.
Elon Musk could have listened to all the nay-sayers, and we wouldn't have Tesla, Space-X, PayPal...
If you want to do it, then do it. Being a landlord doesn't mean you have to start out with a 500 unit complex. You can start with one unit, then expand your empire as you feel comfortable.
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Jason D.
Broomall, PA · Member since 2016 · 85 posts · 28 votes
10y
I have the same experience but I feel that it's more about expectation adjustment. My personal goal is just net residual income of 3k by 35. I believe this is a resonance goal for 10 years worth of work. Some of the people who had more pessimistic view either made bad decisions or expected to get rich with almost no work.
5 Reply
Rob Grove
Coon Rapids, MN · Member since 2015 · 67 posts · 23 votes
10y
@Camron Cottam you just gotta start doing regardless of what people think or say. Make changes in your life to make what you want to happen, happen. Go to meet ups, talk to like minded people. I have a lot of people thinking I'm crazy, but this year I've done what I just told you and I feel more focused because of it. But it's taken me a decade plus to get this far....
No one looks out for #1 except for #1!
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Ronald Bourgeois
Real Estate Agent · Wareham, MA · Member since 2013 · 112 posts · 67 votes
10y
Usually I find these people trying to look intelligent, when they have no experience in this field or have a friend of theirs who tried RIE and it didn't work out for them. I got laughed at for months. But I'm eating well! :) and most importantly living they way I want to.
If you've got what it takes GO FOR IT!
9 Reply
Mike Nelson
Investor · Oak Park, IL · Member since 2014 · 307 posts · 150 votes
10y
Sometimes it may be good to hear a negative take on real estate, especially if there is some sound reasoning behind it. That said, I remember before I bought my first property in Wicker Park in Chicago someone much smarter than me showed me a spread sheet of why my investment would not make sense. I gave his advice some thought, but acted on my gut instinct. The investment ended up being quite successful.
3 Reply
Mike Wood
Developer · New Orleans, LA · Member since 2015 · 1k+ posts · 898 votes
10y
@Camron Cottam Being a landlord is not for everyone, and at times it can seem not worth it (like clean up after a tenant left a messy or trashed unit). I like it, but my wife could not be bothered. Like anything, good things take work.
I personally think alot of people think its easy. They remember being a renter and all they had to do was pay rent, so they think thats all the owner does (which is not the case). I also think that alot of people give up on rental properties too early. Some things get easier with scale, but when you only have 1-2 units, everything thing seems super critical.
Keep at it and give it a try yourself. Use resources available (BP, books, other investors, etc) to you, so you don't have to learn it all for yourself.
5 Reply
Scott TrenchPro Member
Rental Property Investor · Denver, CO · Member since 2014 · 2k+ posts · 6k+ votes
10y
I recently went to a high school and talked a little bit about finance careers.
I asked the people in the room if they knew anyone that was wealthy in their lives.
Everyone's hands went up.
I then asked them to keep their hands up if those wealthy people they knew owned real estate.
Pretty much everyone's hands stayed up.
Obviously, this isn't a one size fits all investing approach and real estate doesn't guarantee wealth. That said, almost everyone I know that is far wealthier than average owns real estate as at least part of their portfolio, is not afraid of hard work, and is a long-term, consistent thinker and action taker.
Maybe you SHOULD talk only to a small sample of people when it comes to wealth and investing. A sampling of people that you admire and want to emulate only.
The average, not-so-well-off person might not be someone you want in your advisory council when it comes to building wealth. In fact, these average people that shut you down might just mean that there is less competition.
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Lumi Ispas
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
10y
@Camron Cottam, 9 out of 10 millionaires are made of Real Estate in United States.
The homeownership rate in United States is just under 30%, so 70% of the people you talk to do not even own Real Estate.
Look who is giving the advice. Where are they in their life, do they own RE and if they do, do they have any income property or do they just own a home? Kiyosaki is not calling your own home an investment unless it brings you income, the real investors are the people that get cash flow, or the income brought by the RE property at least covers all the expenses 100% and by the time it's paid off, you'll have assets and a lot of cash flow.
Who do you hang out with? Jim Rohn said "The difference between where you are today and where you'll be in 5 years is in the books you read and the people you meet".
Camron, the question is who are you meeting? Here on BP, at your investment clubs and in the RE world and what books are you reading? Who are you listening to?
Hope this post will inspire you to keep going on your road and not being derailed by anyone's opinion. Your goal in life should be like a beacon of light. Listen to everyone's advice, take only what works for you and keep moving towards the light!
7 Reply
Richard Bradshaw
Investor · St Petersburg, FL · Member since 2015 · 127 posts · 39 votes
10y
Don't give any worth to the opinions of people who have never done what you are trying to do. Speak to people who have done it and will tell you their real experiences. Those people you speak of are making opinions based off of assumptions. Do your research and be confident in your findings and you'll be able to mute those people out.
1 Reply
Camron CottamPro Member
OP
Rental Property Investor · Naugatuck, CT · Member since 2016 · 42 posts · 20 votes
10y
First off, I would like to thank everyone here for the encouragement!
@CK Hwang The people I have talked to have either had previously done some business with real estate in the past and stopped, or looked into real estate and decided it was too risky for themselves.
@Lumi Ispas Thank you for the post! I am in the process right now of trying to find investment clubs or something like that in my area. Someone offered to take me to this group event but if I wanted to continue going I would need to pay a membership fee. It seemed weird to me that I would have to pay for something like that, is that normal?
1 Reply
John Weir
Contractor · Greenville, SC · Member since 2015 · 129 posts · 25 votes
10y
I'm a real estate agent and property manager and I enjoy both. I only manage 4 properties at the moment so it's not a lot but I have good relations with all the tenants and my clients love me as an agent. Whatever you put into it is what you'll get out of it. If you enjoy personal contact with people then you will do fine, and probably enjoy it like I do! Best of luck, don't get discouraged!
2 Reply
Lumi Ispas
Real Estate Consultant · Chicago, IL · Member since 2014 · 720 posts · 439 votes
10y
@Camron Cottam, all investment groups are different. Most have nominal fees per meeting or annual fees of $100 or so. If it's much more, you have to see what do they have to offer.
Check to see if there is anyone from Bigger Pockets that has conducts an investment group in your area, or if not, contact members from the BP that are experienced and are very active on the blogs and invite them to start a group.
Good luck!
2 Reply
Charles Worth
Investor · New York City, NY · Member since 2015 · 808 posts · 417 votes
10y
@Camron Cottam
I would pay far more attention to this sentiment than people here like to give credence too. Except for times of extreme mispricings real estate is a business and like any business there are potentially great rewards and potentially risks associated with your activities. You would do well to consider why those people are negative and not just dismiss them. For every person that the posters here have referenced as success i would habit to guess there are those who are unhappy with real estate. Don't think of it as bringing you down, think of it as a learning opportunity to get an free education that cost them a lot of money. Maybe they bought at too high a price, maybe they did not do a good job of managing tenants, maybe they overrehabbed, maybe they got taken by bad operators etc.
You should also find out what their motivations were. For instance, did they want a passive investment and end up with a job? Well that might be bad for them but it may be ok for you because you want to learn.
Its also true that many rich people own RE. There are many reasons for this including high returns, diversification, tax benefits, etc. but that may not help you unless you too have a good amount of money that needs parking and/or have an income that needs those tax benefits. So their strategy within RE may not be yours.
These are just some of the reasons each situation is different and I would not pay too much attention to others except to learn.
4 Reply
Jon W.
Investor · Matamoras, PA · Member since 2015 · 111 posts · 32 votes
10y
Don't take advice from other people trying to advise you on things they havnt done themselves. Its like a person born blind trying to explain color. except they have never seen color. They have all the best intentions, but you might find yourself mislead.
Everyone is different in their abilities. Realestate most likely isn't for everyone but i believe its a great investment.
2 Reply
Joe Bertolino
Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
10y
I don't talk about real estate with "civilians". It's a waste of time. After you start having some success they will start asking you questions and their attitude will be different.
3 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
10y
No one has yet to state the obvious; 80-20.
Best advice I ever got when jumping into business years back was being taught the rule of 80-20, and how "if you let them, the 80 will destroy you before you even start". the 80 are sheeple, and, they don't like anyone going astray.
Do you want the REAL story on it, find those successful at what you want to do, say flipping, and ask them, if they had it all to do again, would they? Are they happy at it, or are they searching for the exit?
There is not 1 profession in existence that dosnt have its persons who did not succeed, who failed for what ever reason, if you ask them how it went of course they will happily expound on it as the path to destruction, but ask those who have made it and find the truth because they have no advantage to report it in any direction either pro or con.
Speak with sheeple and get a sheeple answer to "fooooolow the flooock", go to school, get some paper, get a job, work hard, get laid off, get another job, and work in some life in between being a good employee for the company. Hey, I employ sheeple, I love em, they pay my bills and I love em, by all means be a sheeple, but don't get it twisted, being the farmer is by far better, zero doubt.
4 Reply
Chris Sukala
Rockford, IL · Member since 2015 · 343 posts · 95 votes
10y
Camron Cottam well we have had some similar responses. I have listened to one of the podcasts of Brandon Turner. I loved it. In fact I just received his 2 books on "Rental property investing and rental property managing that I am getting ready to read. I figured do what is best for you and who cares what others think. Good luck!
3 Reply
Alan Morrison
Grand Blanc, MI · Member since 2015 · 24 posts · 13 votes
10y
At the risk of sounding flippant and uneducated allow me to say...
Haters gonna hate
As obnoxious and cliche as that may sound it certainly rings true here. People are often quick to point out negative aspects to anything. They equip their negative statements with anecdotes of past bad experiences. These experiences, when analyzed, often display a lack of due diligence and/or grit. I agree with the several other users that recommended building a local network to surround yourself with like-minded people; attending my local landlords association meetings have helped me build confidence!
3 Reply
Stephen Hundley
Realtor · Lafayette, LA · Member since 2011 · 296 posts · 175 votes
10y
@Camron Cottam
Talk to more people. They are negative bc they are either scared or misinformed. Hang around here more often and then those same people will be coming to you for advice when you succeed
2 Reply
Joel OwensBusiness Member
Moderator
Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
10y
The reality is people expect real estate to be a success only journey. They are often shocked to hear from the most successful and wealthiest people in America that failing often is part of the process.
People's state of mind shows how they react to adversity. Those that tried things once and quit will talk about how bad it is so they do not feel worse about giving up on their goals and dreams. It's a justification for living less than you truly want to be in life.
I changed my thought process decades ago. In my early 20's I expected everyday to be perfect and that was the goal. When the day didn't end up that way (most of the time) I would get all bent out of shape and lose focus.
You have to "retrain your brain" for success.
Today my mindset is I expect multiple problems to overcome during the day and that is my normal. Then this way I do not get bent out of shape but I expect it to happen. If it is a really hard day those are few and far between. If it is a really great day with no issues then I savor the sweetness of that rare occurrence.
When you realize your dreams from unrelenting perseverance and see others around you have given up you feel a great sense of accomplishment and pride doing what so many have tried but failed to achieve.
Don't be afraid of trying. Be afraid of having never taken the step to see what was possible. I can live with failing,trying,learning. I can't live with fear,inaction, wondering "what IF?".
My father in law it took probably about a decade before he came around to supporting what I do. He was from the conventional mindset a college professor where you go to school and get that J-O-B and have that security for the family. When he saw I was having massive success he embraced that I was different and unconventional but I was not only surviving but thriving.
It's funny now a family member works for me and does a great job and in 6 months at my company will make more money than he did all year at the J-O-B.
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Cashmere Robinson
Wholesaler · Bronx, NY · Member since 2015 · 46 posts · 11 votes
10y
As usual, there are two sides of coin. My suggestion is to listen to your inner self and make a decision wisely.
2 Reply
Jerry Stanford
Chicago, IL · Member since 2015 · 469 posts · 81 votes
10y
@Camron Cottam...I agree with all the sentiments and thoughts posted. I'm a newbie myself and the people I've spoken with that were negative about real estate were those that did 1 maybe 2 transactions that didn't go well or haven't done it at all or tried the infomercial way and found no success. Now that I've found BP and gone to local REIA's, I've gotten a different perspective and some key direction to help avoid common pitfalls. I believe if Real Estate is viewed as a career like Engineering or Medicine and not a hobby or a get rich quick, people would take the time to be educated and research as they would if they were going to take on a career in Engineering or Medicine. Many people go to college but not all come out with a degree. It isn't for everyone and the same is true for real estate.
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