Everyone shutting me down?

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Everyone shutting me down?

Camron CottamPro Member
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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  • Chet Mostue
    Real Estate Agent · Littleton, CO · Member since 2016 · 41 posts · 9 votes
    10y

    The truth is "it's not for everyone" but that doesn't mean its not for you!  pursue your dreams!  there is a reason you are interested in real estate.  Don't give up! 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    10y

    @Camron Cottam

    my thoughts on this is that your feedback you will get will be directly related to the market were you live and work...

    Some markets right now the advice your getting is probably spot on.. it is tough.

    and other markets being a landlord is pretty intense.

    however there is FAR more to RE than just buying rentals.

    Buying rentals just happens to be the lowest bar of entry.. pretty much everyone understands the concept.. IE buy rent out renter pay's your mortgage off or you get some cash flow.

    And most RE investors have good jobs and then are Investors... those that want to do it for a living and replace the job with this new job.. that is totally different and a longer trajectory. 

    Really depends on what your long term goals are.

    However in my opinion its just small business owner and there are many other small business one can buy that will do as well if not far better than buying rentals.

    I have friends that own subway sandwhich shops they are doing very well its a job but they are building true wealth.

    I have another friend that has the number one take and bake pizza place in PDX they do very very good.. and talk about free time .. he is always inviting me to go fishing mid week.

    So I really depends on what you want to do.. but if its just buy a few rentals well that's very vanilla and should not be any big blow back from others.. now if you telling them you want to give up your income and jump into RE as a newbie then you should defiantly head the advice of others.. because this business in Certain markets is not realistic to go from nothing to self sustaining in any short amount of time unless your already starting with significant capital behind you.

    Now there are areas of the US were properties are so Cheap you can start with credit cards.. but those are very management intense situations and defiantly not for all

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  • Cliff Graham
    Rental Property Investor · Jacksonville / Neptune Beach, FL · Member since 2015 · 13 posts · 5 votes
    10y
    It's the people you're conversing with. Real estate has so many fundamental features other investment just don't offer. What other assert has intrinsic value, predictable appreciation, and people will help you pay for it, i.e. tenants. It's not complicated, but it is hard. But I know of nothing worth doing, learning, becoming proficient at or investing in thats isn't hard. Find a successful investor and do what they do, read what they read, listen to what they listen to and move forward ! Good luck !
    1Reply
  • Mark Cruse
    Investor · Fort Washington, MD · Member since 2014 · 1k+ posts · 1k+ votes
    10y

    I've been reasonably successful in REI but certain aspects of it do suck. I tend to tell them the truth from my perspective. If you don't love it, leave it alone. I happen to love this business so much of the BS that comes along with it is just part of the process. Oh too often do people wake up one day and out of the thin air decide they are an investor. It sounds like a catch phrase to me. Most people think it's easy and anyone can do it. Many of them can't take the stress and multi faceted degree of volatility that comes with it. Others go to these gurus that are pushing out thousands of unskilled people on the streets that are just saturating that game with pandemonium. They have been told that instantly they will close dozens of deals a month and cash big checks. I say if you jump in you need to be prepared to go all the way. It's not a get rich quick scheme and a substantial degree of people coming in fail. Now if they get past all of that and I see a genuine passion for it then we take it to the next level.

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Jay Hinrichs:

    @Camron Cottam

    However in my opinion its just small business owner and there are many other small business one can buy that will do as well if not far better than buying rentals.

    This point isn't brought up here a lot, since the spin on BP is that real estate will save you from a life in a cubby.  But, there really are many small business opportunities that can provide way more cash at a faster rate than rentals.  And many of them can be pretty passive if set up right....not really different than hiring the right PM and bookkeeper.  I know someone who owns a vending biz at several nearby state parks.  She's been doing it for years.  She doesn't visit the parks or service the machines.  She has a buyer who orders and manages the few part time college kids.  I have a friend that owns a food cart business, with locations at the university and a business park.  He makes phone calls.  These are business that profit $100K+ a year while these people do other things (one's a lawyer, one's a contractor).  

    I love RE, but I sure do meet a lot of people who don't......but still think that's where their financial freedom is.

    1Reply
  • Joey Burstyne
    Investor · Germantown, TN · Member since 2015 · 8 posts · 4 votes
    10y
    Camron Cottam I've been a RE investor for over 5 years now and I hear this sort of negativity a lot...mostly from people who are uneducated regarding RE or are simply way too conservative or lazy to get in the game. The reality is, the more people who think this way means lesser competition for you and I! Think of it that way. This sort of negativity doesn't deter me, it inspires me to continue building wealth by doing what most others will not or cannot.
    2Reply
  • Adam P
    Investor · Chicago, IL · Member since 2010 · 76 posts · 55 votes
    10y

    Real estate on average does suck.  Being a landlord of an average property is too much work for how much money you make.  I look at the average 3 or 4 flat for sale in Chicago, and there is a huge chance of never making a penny out of those investments, unless the market rises significantly.

    However; you are on biggerpockets.  You can educate yourself on the true costs of being a landlord.  The real numbers when flipping.  You can become an educated real estate investor.  I discovered biggerpockets 5 years and $1 million dollars ago.  Real estate is fantastic in that the average person can exploit the arbitrage.  

    Most other investment classes are full of the smartest guy in the room owning the market, and you are left to either pay them to invest for you, or to try and compete.  Real estate gives everyone a shot with a little self education and hard work.

    1Reply
  • John Meyers
    Real Estate Broker · Park Ridge, IL · Member since 2013 · 30 posts · 9 votes
    10y
    Originally posted by @Camron Cottam:

    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?

    Hello Camron,

    If you have the extra cash to spend on repairs, having the renters buy the property for you (that is how I look at it) is a great investment. -- You probably spoke with landlords who either have an older building requiring lots of maintenance, renters who are not responsible with paying rent on time, or newer condos with assoc and surprise fees which can really hurt the bottom line.

    I recommend starting small and sticking with newer properties that don't need too much containment. -- Studio or 1 bedrooms apts with low assoc fees and low taxes are a great place to start.

    Remember to always keep your rental updated and clean so you can attract responsible, clean tenants! -- Good luck!!

    1Reply
  • Dustin Heiner
    Rental Property Investor · Nashville TN · Member since 2014 · 56 posts · 30 votes
    10y

    Anyone can invest in real estate.  I find that it only matters if the investor will educate themselves enough to know how not to lose money.

    I have been investing for almost 10 years now and am just about to quit my job because my rental income has surpassed my earned income. 

    I believe investing in real estate is the best investment you can make.  Try to learn as much as you can and jump in!

    3Reply
  • Gina Daggett
    New to Real Estate · TX · Member since 2015 · 19 posts · 4 votes
    10y

    Its a lot of naysayers and debbie downers who themselves just do not have the work ethics or drive to do it themselves. They will make every excuse in the book, why it can't be done. Even some people in the real estate industry are negative. Get around positive minded people who are making things happen, they don't all have to be in real estate either. You have no time for that nonsense and sad to say this, but do not share your business with everybody. Just do not let everybody in your circle, as a new investor you need nothing but support, and sometimes its not your friends or family. Follow your passion and good luck.

    1Reply
  • Vaunda Davis
    Real Estate Investor · Pleasant Hill, MO · Member since 2015 · 4 posts · 1 vote
    10y

    I am new to real estate investing. We started our business last fall. I have been skeptical but, continued to look for deals. We have finally gotten the opportunity to get a contract for deed deal done. It has taken four months and looking at many properties for the right deal. My suggestion is to be patient. It will happen.

    Thanks,

    Vaunda

    1Reply
  • Merlina Rodas
    Woodside, NY · Member since 2015 · 33 posts · 9 votes
    10y

    Hey Camron, speaking from past experience, I think that these negative comments and people shutting you down is just part of life. There will always be a small group of people who tell you that you shouldn't do this or shouldn't do that for one reason or another.

    It could be that for these people, it's true- that real estate is not a good way to make money, or it's too difficult. But it may be because they don't know what they're doing or they're simply not doing it the right way. BUT, there are so many people who will encourage you and tell you that real estate did work for them, make them millions, and even though it's hard work, it's worth it. 

    So good luck in the future, don't let anyone bring you down 

    1Reply
  • Roger Rustad
    Investor · SSF, CA · Member since 2015 · 127 posts · 24 votes
    10y
    One man's garbage is another man's treasure. Share the names of your disillusioned friends and my guess is that others here will jump on the opp of taking those cumbersome properties off his hands!
    0Reply
  • Sherri Southwell
    Real Estate Agent · Tampa, FL · Member since 2015 · 97 posts · 23 votes
    10y

    Don't pay attention to the nay sayers (i.e. noise)!  The best way to combat negativity is to seek out those who are actually DOING what you want to do, learn from them, then perfect their processes to be even more successful!  Check out Grant Cardone and other motivational speakers on You Tube to stay motivated and moving towards your goals.   Do I get discouraged when I don't get a deal, if a seller says no, or if someone spews negativity my way???? Not a bit!  I know the next deal is coming and am completely confident that I will succeed.  

    1Reply
  • Jacob Sampson
    Investor · Topeka, KS · Member since 2015 · 1k+ posts · 1k+ votes
    10y

    To me, having to be at work everyday for 8-10 hours sucks.  As a society we are just accustomed to that particular scenario.  It's true, like poker, real estate is a grind, but so is a traditional job.

    0Reply
  • Paris Beitel
    Virtual Assistant · San Diego, CA · Member since 2016 · 35 posts · 15 votes
    9y

    I bet you feel alot better now, don't you ?  Be positive, keep learning, affiliate with like minded entrepreneurs, LEAD WITH REVENUE, and keep at it.  Good luck to you !!!  :)

    1Reply
  • Paris Beitel
    Virtual Assistant · San Diego, CA · Member since 2016 · 35 posts · 15 votes
    9y

    @Camron Cottam I bet you feel alot better now, don't you ?  Be positive, keep learning, affiliate with like minded entrepreneurs, LEAD WITH REVENUE, and keep at it.  Good luck to you !!!  :)

    1Reply
  • Ethan Summers
    Austin, TX · Member since 2015 · 223 posts · 185 votes
    9y

    @Camron Cottam  I began real estate investing a little over 2 years ago and have had my fair share of headaches since then. If I were to listen to some of the " Nay sayers" id still be parking cars at that hotel downtown Charleston, SC. Instead I am now selling homes right around the corner. With that being said follow your gut best of luck to you! 

    1Reply
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